Buyback and Bank

This is a proposal to use $25K collected as fees from Version 1 to buyback RIC from SushiSwap at put it into the REX Bank for borrowers.

Background

Version 1 of Ricochet earned over $75K for the DAO Treasury. Some of the fees have been used for MKR-DAI liquidity and for reimbursements when contracts lost customer funds. There is still well over $25K in fees in the DAO that are not being used.

REX Bank supports borrowing USDC using RIC as collateral. It can also support the reverse, borrowing RIC against USDC. The main reasons why someone would borrow RIC would be to participate in governance, to short-sell RIC on the secondary markets, or for any other reason the see fit.

Proposal

The proposal is to take the following actions:

1. Buyback $25K RIC tokens over three weeks using Ricochet’s USDC>>RIC market (to be deployed)
2. Create another REX Bank for borrowing RIC using USDC as collateral
3. Stop streaming more USDC into REX Bank v1.1

If the vote is yes, then the three actions above will be taken. If the vote is no, then no action will be taken.

Justification

First and foremost this is a way for Ricochet to eat its own dog food. That is, it’s an opportunity to use our own product and demonstrate using real money. Second, establishing a market for borrowing RIC will help add liquidity during times of extreme volatility. When the markets overheat, short sellers can step in to provide liquidity. Third, there’s been over 100K USDC added into he REX Banking system. This is enough for now and as funds are repaid and reborrowed, this USDC will continue to circulate within the community and grow at at least 12% annually.