JIP-10 (2) - acquiring veTHE position on BSC through Quoll

Objective

To acquire a significant position in QUO, enhancing the DAO’s voting power on Thena by repurchasing $20K of QUO purchased by the author of this proposal, and selling veTHE assets to acquire additional QUO, thereby optimizing our influence and liquidity strategy on the Binance Smart Chain (BSC).

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Background

Current Voting Power Situation

Thena is emerging as a critical liquidity hub on BSC, especially after THE was listed on Binance, significantly increasing its value and importance. A strong voting position in veTHE is essential for directing emissions toward JARVIS and jEUR pools on Thena, ensuring sustained liquidity and competitive yields.

QUO Opportunity

QUO, the governance token of Quoll Finance, offers an efficient mechanism to control veTHE.

• Current Efficiency:
  • Each $1 of vlQUO controls approximately $8 of veTHE, making it a highly capital-efficient way to secure influence.
  • Current Market Opportunity: With the pump of THE, veTHE holders converted veTHE into qTHE, creating selling pressure and reducing the price of QUO, while QUO still controls significant veTHE value.

Treasury Position

• The DAO previously purchased $10K of THE, now valued at $110K.
• This proposal leverages the DAO’s treasury to secure a more substantial position in QUO for long-term strategic advantage.

Proposal Context

• Pascal has personally purchased $30K of QUO in an OTC deal with the Quoll team to support Jarvis with voting power on Thena, and $20k more to secure a position for the DAO before writting this proposal (with accepting the risk that the DAO will refuse to buy them back).
• With this proposal, the DAO would buy back this last QUO purchase at the same price, effectively acquiring 4,255,319.15 QUO ($0.0047 per QUO), which represents approximately $160K worth of veTHE.

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Proposal Details

1. Repurchase $20K of QUO from Author

• Price: 0.0047 per QUO, equivalent to the original purchase price.
• Amount: 4,255,319.15 QUO.
• Value Secured: Approximately $160K in veTHE voting power.

2. Sell Existing veTHE to Acquire Additional QUO

To further strengthen our position in QUO:

1. List veNFT for Sale: Attempt to sell the DAO’s veNFT on the Element Marketplace with a 40–60% discount.
   • If successful, reinvest the proceeds into QUO.
2. Fallback Plan:
   • If the veNFT remains unsold after 2 weeks, convert veTHE to qTHE and use it to buy QUO directly.

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Rationale

1. Voting Power Efficiency: QUO offers a highly capital-efficient way to control veTHE emissions. Each $1 of vlQUO currently controls $8 of veTHE, significantly enhancing the DAO’s ability to direct emissions.
2. Market Timing: The current depressed price of QUO relative to THE presents a rare opportunity to acquire a large QUO position at a favorable price.
3. Support Key Pools: Increased voting power allows the DAO to direct emissions toward JARVIS and jEUR pools on Thena, ensuring liquidity, yield sustainability, and greater protocol adoption.
4. Strategic Flexibility: Selling veTHE to acquire additional QUO ensures long-term influence while leveraging the DAO’s existing assets.

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Stakeholders

• JARVIS and jEUR Holders: Benefit from enhanced liquidity and yields in Thena pools.
• Liquidity Providers (LPs): Receive better incentives and improved profitability in DAO-supported pools.
• DAO Treasury: Gains significant voting power and ensures sustainable influence in a critical liquidity hub on BSC.

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Metrics for Success

1. QUO Acquisition:

   • $20K of QUO repurchased, securing 4,255,319.15 QUO.
   • Additional QUO acquired through veTHE sale, depending on market conditions.

2. Voting Power Impact:

   • Total veTHE controlled by the DAO post-acquisition.
   • Emissions redirected to JARVIS and jEUR pools.

3. Liquidity Metrics:

   • TVL growth in JARVIS and jEUR pools on Thena.
   • Yield sustainability in these pools over 3-6 months.

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Budget

• $20K USDC: For repurchasing QUO at 0.0047 per token.
• Proceeds from veTHE Sale: Reinvested into QUO through marketplace sales or qTHE conversion.

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Conclusion

This proposal leverages the current market conditions and QUO’s capital efficiency to secure substantial voting power on Thena. By repurchasing $20K of QUO and reinvesting proceeds from veTHE, the DAO ensures long-term influence and liquidity for JARVIS and jEUR pools. This strategic move aligns with the DAO’s objectives of expanding liquidity, increasing yields, and solidifying its position in the BSC ecosystem.

Voting Options:

• Yes: Approve the $20K QUO repurchase and authorize veTHE sale for additional QUO acquisition.
• No: Reject the proposal and maintain current treasury allocations.

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Let me know if further refinements are needed!