Create a SEIYAN-xSEIYAN Liquidity Pool on DragonSwap

Summary This proposal seeks to utilize 500k SEIYAN from the community governance treasury and 500k xSEIYAN to create a liquidity pool (LP) on DragonSwap. The goal is to enhance liquidity, utility, and engagement within the SEIYAN ecosystem while providing value to xSEIYAN stakers.

Rationale

1. Liquidity Pathway: Establishing an LP will create a seamless liquidity path into SEIYAN and other assets, as SEIYAN already has a SEI pair.
2. Enhanced Utility for xSEIYAN: -xSEIYAN will become a liquid, tradeable version of staked SEIYAN, enabling holders to trade without unstaking. -This improves accessibility and opens new trading opportunities within the ecosystem.
3. Encourages Staying Staked: -Knowing that xSEIYAN is liquid will discourage users from unstaking, as they can trade directly without cooldown periods. -This keeps tokens out of circulation while maintaining staking rewards and governance participation.

Benefits -Keeps 140M xSEIYAN stakers engaged by adding utility. -Reduces circulating supply while maintaining staking rewards.

Drawback -Potential Liquidity Path for Selling: The creation of this LP introduces a pathway for bearish sentiment, as it allows users to sell xSEIYAN into the underlying SEIYAN LP. However, this risk is mitigated by the fact that the proposed liquidity represents less than 3% of total liquidity, making any impact on price or sentiment limited.