We currently have an NFT 20 pool that has 0 liquidity in it. This proposal is to re liquify the LP (liquidity pool) for stage 1, to provide an always on market for those that need Liquidity. Allocated cost of up to 3 ETH.
The Action : there are currently 70 Ducks in the pool. THIS proposal is to simply add liquidity to the pool at this level of current tokens. further decisions will be made after that point. (Discussion to follow in community wallet)
COST: Our current estimation on 70 DUCK pool to get up and running is between 2-3ETH . (our assumption is another 2 ETH may eventually be needed)
GOAL: To create a stable LP. As the LP provider it is like a constant buyback mechanism on the bid. where we earn staking rewards. Should we have an active pool we can earn $MUSE.
"MUSE is the governance token of nft20.io . NFT20 is a permissionless p2p protocol to tokenize NFTs and make them tradable on decentralized exchanges such as UniSwap or Sushiswap. Anyone with an NFT can create a new pool or add his NFT to an existing pool and get ERC20 Token derivatives of their NFTs in a permission-less way, those tokens can be transferred and traded on DEXes right away. You can also swap your NFT for any other NFT of the same pool, no need to tokenize."
OUR POOL is at NFT20.io : https://nft20.io/asset/0xc475f8d8078a57e6f3725b9b78ca75402f81cc0a
INFO: We had a lively discussion in #communitywallet . https://nft20.io/farm https://snapshot.org/#/nft20.eth/proposal/QmP19j9MRApzKumYWnivWS9iE6kpPh935zz7pKznjUSHyn
WHY DO THIS: It provides staking rewards for our wallet. It provides a place for floor ducks to go besides OS. It should "support" the project.
RISKS: IL : https://academy.binance.com/en/articles/impermanent-loss-explained
Arbitrage of the pool and OS. IMO this is simply a function of the markets. but optically it upsets some.
Pool Gets Drained: this was a problem early. hopefully at this point in the journey we have ducks who will let us get the pool solid and hear the plans before DUMPING into the pool ... We anticipate a "pool party" upon reopening however. (members dumping into the pool)