[GP-5] Aerodrome Allocation

Protocol Owned Liquidity Injection: The proposal calls for a $500,000 investment from the DAO’s treasury into the SEAM/USDC LP on Aerodrome, granting us the dual benefit of trading fees and AERO emissions. SEAM for Voting Incentive: To sustain community engagement, we propose a $140,000 fund for SEAM incentives over 20 weeks to incentivize voting, which in turn boosts AERO emissions and the protocol’s governance strength. Fruitful Emissions Outcome: An anticipated collection of approximately 132,146 AERO, estimated at $199,540.46, sets the stage for a community-driven decision on the utilization of the accrued assets. Ultimately, the DAO will decide what we do with the earned AERO rewards/emissions: (1) sell AERO to buyback SEAM; (2) lock-up AERO and improve the DAO’s opportunities in earning more emissions. Advantages for the DAO: This approach allows us to forgo a rigid lock-up period, instead facilitating active liquidity provision to stabilize SEAM’s value and increase potential revenue and governance sway. Specification Our proposal aims to utilize treasury assets in a manner that not only enhances liquidity but also aligns with our long-term objectives (and the ethos of Seamless Protocol). We are sidestepping an enforced lock-up in favor of a more fluid and dynamic approach that provides immediate benefits and opens up future governance decisions to the community.

To reiterate:

$500,000 worth of SEAM will be allotted towards LPing in the SEAM/USDC pool. $250,000 worth of SEAM will be exchanged for USDC in 7d TWAP. After successfully exchanging SEAM>USDC we will proceed to provide liquidity to the given pool. At the same rate, we will also allocate $140,000 worth of SEAM to further incentivize the pool. We’ve broken this allocation into weekly intervals of $7,000/week. This campaign aims to run for 20 weeks. At the mid-way point of the campaign (week: 10), an update proposal will be submitted for community deliberation to determine whether or not: (1) we should continue with this experimental effort or; (2) the community is in favor of how well the campaign is performing and believes we (the DAO) should allocate more funds to the existing LP position. We are confident that this proposal serves the best interests of the DAO, providing stability for SEAM’s market, generating revenue through trading activity & emission accural, and possibly amplifying our governance influence overall.

We welcome the community’s feedback, discussion, and votes on this pivotal governance proposal.