Stargate DAO - Arrakis PALM

Summary Proposal to increase the Protocol-owned liquidity allocated to Arrakis PALM to keep conducting capital efficient market making for STG on Mainnet Uniswap v3 to earn yield.

Background & Motivation Back in April, the Stargate DAO decided to open a PALM vault with $500k worth of STG and $500k worth of USDC, aiming to create a secure UniswapV3 oracle. This vault was successfully funded on June 1st. After observing its performance for half a year, the Arrakis team would like to review its outcomes and propose an opportunity to strengthen the partnership between both entities. Arrakis believes that the Stargate DAO can significantly benefit from an expanded PALM vault capable of facilitating markets with deeper liquidity.

Proposal The Arrakis team believes that Stargate could also benefit from allocating a bigger share of their liquidity to Arrakis.

Currently the biggest pools, such as Balancer and Curve, are not making the most out of their liquidity, due to the limitations of their less sophisticated design. The Stargate DAO could boost their revenues by providing their PALM vault with more resources, while continuing to farm both CRV and AURA with their existing portfolio strategy.

Because of that, our proposal is to increase PALM liquidity on Ethereum mainnet by shifting some of the pre-existing POL on Balancer and Curve.

Requested funds: $2.4M worth of STG and USDC ($1.6M from Balancer + $0.8M from Curve) By doing so, Stargate would reallocate roughly 7% of their POL.