[PIP 37] SushiSwap <-> PickleSwap, TokenSwap ... Swap

author: @leekuanjew

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TL;DR:

The Sushi team has proposed swapping governance tokens between their protocol ( $SUSHI ) and ours ( $PICKLE ) in order to further cement the bond between our communities and to strengthen our ongoing partnership.

The Proposal

SushiSwap and Pickle propose to exchange governance tokens between their Treasuries with a nominal value of $300,000 per party. Under the terms of this swap, Pickle receives $SUSHI, and SushiSwap receives $PICKLE.

What We'd Get

$SUSHI has proposed giving us 40,000 $SUSHI at a generous discount. We would hold these tokens for at least a year, however, it is perfectly fine for our Treasury to deposit them as xSUSHI or borrow other assets against them on a lending protocol.

What We'd Give

To express our gratitude for this kind gesture, the Pickle team has agreed to propose to its governance the migration of the PICKLE-ETH liquidity incentives to MasterChefV2 in SushiSwap, where $PICKLE rewards will continue in addition to $SUSHI rewards for LPs.

We will also be giving $300,000 worth of $PICKLE tokens to the Sushi treasury at the spot price, which they will also hold for at least a year. Pickle plans to source its $300,000 worth of $PICKLE from its Smart Treasury, which currently holds 28,300 $PICKLEs (worth ~$350k at today’s price).

Surely, the impact to the Smart Treasury will be felt in the short term. However, since the Smart Treasury exists to benefit the development of Pickle and its ecosystem, we feel this is an appropriate use of these funds.

Replenishing the Smart Treasury

Over time, the Smart Treasury would be replenished with $PICKLEs via $ETH deposits that the Treasury is currently in the process of accumulating. Those $ETH deposits are being procured with Treasury revenues, which currently hovers above 6 figures weekly.

The Vote

We invite members of the DILL DAO to give their "aye" or "nay" on this proposal. As proposers, the team believes a vote to approve would serve to cement our partnership with SushiSwap, which is ultimately in the best long-term interest of Pickle and its community.