RIP-8.1: Adjust Liquidity in Uniswap Pools

SUMMARY: Currently, two different pools on Uniswap V3 exist for ResearchCoin (RSC). Pool #1 and Pool #2. Pool #1 contains a dense band of liquidity, while Pool #2 provides liquidity over a larger band of prices. At current price relative to ETH, Pool #1 is encroaching on the upper band of liquidity. Once fallen out of range, Pool #1 won’t be effective in providing any liquidity for trades pertaining to RSC, and the assets will simply be sitting idle. Thus, we propose to remove liquidity from Pool #1, after it has fallen out of range, and redeploy all non-RSC assets (including trading fees) back into Pool #2 coupled with the appropriate amount of RSC. In addition, we will deploy any remaining RSC into a new dense band of liquidity pool.

• Pool #1: https://app.zerion.io/nfts/ethereum/0xc36442b4a4522e871399cd717abdd847ab11fe88:354095?address=0xc4cfa2bdae08416312faa0b72758e1f3750f81e3
• Pool #2: https://app.zerion.io/nfts/ethereum/0xc36442b4a4522e871399cd717abdd847ab11fe88:383423?address=0xc4cfa2bdae08416312faa0b72758e1f3750f81e3

MOTIVATION: After falling out of range, any assets in a Uniswap Pool will sit idle and not used as liquidity for any trades. In order to maximize the impact of the assets on effective liquidity, once the price of ResearchCoin falls out of range of pool #1 it is important to transfer this idle liquidity to an active liquidity pool.

PROPOSAL AND ACTION: We propose to remove all the assets in pool #1 (RSC and ETH) after the price falls out of the range of liquidity (upper end = 120,500 RSC per ETH). Any liquidity, and any trading fees from pool #1 that are all non-RSC assets (i.e. ETH) will be redeployed into the already existing pool #2. The ETH needs to be matched with an appropriate amount of RSC, and we propose to use up to 3,500,000 RSC from the Community Treasury reserves to provide the other side of liquidity. Any remaining RSC from the 3.5M RSC will be used to provide additional liquidity at a denser range of 120,500 to 35,578 RSC per ETH.