RFP-10: Expand POL Through Automated Pool Manager [Protocol Mechanics]
Abstract
RFP-10 aims to deliver on the objectives of RFP-9 by expanding Protocol Owned Liquidity (POL) on all chains where Radiant is deployed.
Motivation
At present, Radiant's DEX liquidity is largely supplied by external liquidity providers, while the platform holds only a nominal amount of POL. The objective of RFP-10 is to expand Radiant's protocol owned liquidity through an automated concentrated liquidity pool manager.
For historical context, two partners are under discussion: Arrakis Finance and Gamma Strategies.
Discussions in Discourse:
Documentation:
Wheras each protocol has their own approach to creating POL and automatically managing concentrated liquidity ranges, as discussed in RFP-9, the Radiant DAO should decide on which protocol(s) to work with given the scale of the partnership.
To reduce dependence on unpredictable liquidity providers, the Radiant Capital DAO will expand its POL to provide stable liquidity for new Radiant chain deployments. The DAO plans to use an automated pool manager, such as Arrakis or Gamma, to manage the concentrated liquidity range through necessary rebalancing and range adjustments.
Key Terms
- POL: Protocol Owned Liquidity, or liquidity not owned by any individual team member and is directed by the Radiant DAO
- CEX: A Centralized Exchange, such as Coinbase or Binance
- DEX: A Decentralized Exchange, such as Uniswap or Pancakeswap
Specifications
- 5M RDNT tokens to be allocated to either Arrakis Finance, Gamma Strategies, or a combination of both via the Liquidity MultiSig (
0x56abD0528FeF95149bA98B1b7f8d34e1ED7b5141) to be used for cross-chain POL - Use Arrakis PALM or Gamma’s rebalancing strategy in order to achieve a more balanced LP position from a concentrated RDNT position at genesis
- While the initial POL bootstrapping will be done on Arbitrum (given reliance on a Uniswap v3 deployment for both protocol(s), this liquidity can be ported to BNB Chain, or other RDNT deployments as needed
Steps to Implement
- Issue 5M tokens to Gamma, Arrakis, or both vendors (with equal split of 2.5M each)
- Agree on commercial terms with Gamma and/or Arrakis
Overall Cost/Impact
Arrakis and Gamma have their own fee structures which are laid out in these discussion topics
Gamma Strategies POL Discussion
Timeline
Implementation would go into effect upon launch to the new OFT token for RDNT and launch of v2
Voting
- Arrakis Finance only: All 5M tokens in allocation to Arrakis Finance
- Gamma Strategies only: All 5M tokens in allocation to Gamma Strategies
- Arrakis Finance & Gamma Strategies Split: Allocate 2.5M RDNT to Arrakis and 2.5M to Gamma for POL bootstrapping
- Abstain: Undecided, but contributing to quorum
Off-Chain Vote
Arrakis Finance only
4.56M RDNT31.5%
Gamma Strategies only
85.1K RDNT0.6%
50/50 split
9.02M RDNT62.4%
Abstain
795.43K RDNT5.5%
Quorum:111%
Timeline
Mar 12, 2023Proposal created
Mar 12, 2023Proposal vote started
Mar 15, 2023Proposal vote ended
Oct 11, 2024Proposal updated