LP to be moved from UniV2 to UniV3 to launch lending market

Summary

$PDT holders are currently waiting for the Staking Model to be deployed for $PRIME and other rewards sharing.

Sellers of $PDT are selling for access to liquidity for the most part.

Motivation

PDT holders need a way to access liquidity in the token without the need to sell.

This would allow longer term holders to have flexibility in their portfolio with PDT.

The Treasury also is lacking yield returns outside of the NFT assets held by the multisig, lending against the PDT token would be a new form of yield to the treasury

Proposal

ParagonsDAO currently holds $5M USD in liquidity on UniV2 PDT/ETH with the proposal to move this liquidity to a UniV3 full range position.

Using the UniV3 setup it allows the use of a pricing oracle within Rari Capital’s Fuse pools where we can set up the ParagonsDAO Fund. This would be a pool owned by the Paragons Multisig and allow the treasury to lend USD assets against PDT.

Suggest a non shorting pool, whereby PDT can only be used as collateral and not as a borrowed asset, the only asset that can be borrowed being USD. We are not trying to create a long/short market, but a liquidity access pool.

Collateral Factor - 40%

USD Rate Curve - Compound Stablecoin Model

Tokens available to borrow - USDC, USDT and DAI

Tokens available as collateral - PDT, USDC, USDT and DAI

Initial USD allocation from Paragons - $1.5M USD in USDC and DAI