SIP-008: Allocating 5M Dai from Treasury to liquidity mining on Lambda-2Pool on Curve

SIP-008: Allocating 5M Dai from Treasury to liquidity mining on Lambda-2Pool on Curve

Background:

Spartacadabra just launched 24 hours ago and is incentivizing Lambda-2Pool with Charm rewards. Allocating Spartacus treasury to earn Charm rewards on lambda-2Pool will drive synergy between the two protocols.

Benefits for Spartacus DAO:

1. Spartacus treasury will earn Charm and transaction fees on Curve. Spartacadabra Lambda-2Pool current emission rate targets 16% APR on a 5M TVL.
2. Higher liquidity in Lambda-2Pool allows more Lambda can be replenished and borrowed against wsSPA collateral, encouraging more SPA stakers and improving SPA staked %.

It will benefit Spartacadabra as well:

1. Higher liquidity in Lambda-2Pool allows more Lambda can be replenished and injected into market.
2. More borrowed Lambda means more fees for Spartacadabra protocols and more buyback for Charm tokens.

Risk Factor: The Spartacadabra protocols have been limiting the circulating supply of Lambda to maintain the 1USD peg on Lambda-2Pool on Curve. As long there is sufficient and balanced Lambda/Dai/USDC liquidity on the Curve pool, the Lambda-2Pool can be considered as a “risk-free” stable coin pool (no impermanent loss).

Proposal: Allocating $5M Dai in Spartacus Treasury to liquidity mining Lambda-2Pool on Curve.

Please Vote: Yea to support the proposal Nay against the proposal