SDGP#3 Token Swap: Stake DAO x Alchemix

Summary: Expand the partnership between Alchemix DAO and Stake DAO by performing a 500K $SDT treasury swap of SDT for ALCX which will be used to increase the synergies between both protocols

Context: Alchemix is a DeFi protocol that allows for the creation of synthetic tokens that represent the future yield of a deposit. It enables users to retrieve near instant tokenized value against temporary deposits of stablecoins.

Alchemix has been an old friend of Stake DAO. Alchemix has supported the SDT/ETH gauge vote on Convex, and has been the first DAO to see the value of our Liquid Lockers.

To use the liquid lockers, Alchemix needs to lock 1,000,000 SDT, but due to the low liquidity in the market, it was really difficult to achieve. We suggested that they could buy 500k SDT from the market and that we could ask the community’s approval to allow another 500k as an SDT/ALCX token swap. With this 1,000,000 SDT, Alchemix is planning to lock a large amount of CRV through our sdCRV locker.

The governance token of the protocol is the ALCX, which works with a staking model that allows stakers to vote on:

• Protocol parameters
• Funding
• Feature Request
• Matters of the DAO

Rationale: We’d like to propose a token swap of 500K SDT against the same value in ALCX between both DAOs.

By expanding the partnership between both DAOs with a treasury swap, we can make sure that each project will be able to participate actively in each other’s governance.

It will also help bootstrap our Liquid Locker activity significantly and potentially lead to bribe revenues for sdCRV holders.

Benefits:

For Stake DAO:

• Create a long term position on Alchemix
• Increase the governance participation and DAO revenues by staking $ALCX
• Increase the visibility of both projects with cross marketing
• Increase the size of our CRV locker to get closer to critical size

For Alchemix DAO:

• Create a long term position on Stake DAO
• By locking SDT for veSDT, Alchemix will be able to boost the voting of sdCRV, sdFXS or sdANGLE that they have staked
• Increase the visibility of both projects with cross marketing
• Increase of the TVL and revenues with Stake DAO treasury deposits (if accepted by the SD vote)
• Alchemix has already bought 500k $SDT, performing a token swap would allow them to acquire a position on $SDT more easily

Means: The token swap will require simultaneous token transfers between Alchemix and Stake DAO for a total amount of 500k $SDT.

Technical implementation: To perform the token swap, both daos will need to send tokens to the other dao by using their Gnosis Safe.