Proposal summary

The protocol should own part of its liquidity, by becoming a liquidity provider (LP) in the USDC-jEUR Synthereum Liquidity Pool on Polygon with 30k USDC.

Details

First, the community multi-sig first needs to register the treasury address (0x2709fa6FA31BD336455d4F96DdFC505b3ACA5A68) as a whitelisted LP.

Then, the treasury needs to gather 30k USDC by:

• Selling all the stablecoins on Polygon, Gnosis Chain, Avalanche and Ethereum (worth ± $14k).
• Withdraw all our liquidity from the JRT-USDC 90/10 Balancer pool (worth ±12k USDC).
• Selling UMA, KNC, CVC and APW (worth ±$6k).

Note: To speed up the process, these assets will be transferred to Jarvis LTD (0xc31249BA48763dF46388BA5C4E7565d62ed4801C) who will proceed to sell everything for USDC and send back the funds to the treasury on Polygon. Jarvis LTD will provide all the tx details on Discord.

Finally, the treasury will activate its position within the pool with a minimum health ratio of 120% and deposit 30k USDC.

Motivation

1. Capture more value for the protocol

With the new tokenomics, most of the value generated by the protocol will be received by its users (LPs, borrowers, stakers). Becoming an LP will allow the protocol to capture part of this value (that it can later redirect to JARVIS stakers for example, or re-invest). It actually is very important for the protocol to become its biggest LP and own its liquidity on both the primary and secondary markets.

2. Solve the liquidity issue

As of today, Synthereum v2 supports multiple LPs to provide liquidity in its Liquidity Pools. But due to some limitations, the protocol can only support 5-10 LPs. Therefore, we can only accept big LPs. To solve this issue, we work on LP vaults, which will be one LP that anyone can join. But in the meantime, only Jarvis LTD has been providing liquidity and it does not have unlimited funds, resulting in having no more liquidity for jEUR, jGBP, jCHF, and jJPY. The treasury can help resolve this liquidity crisis in the short term until most of the jEUR provided in secondary markets' liquidity pools come from loans.

Vote

YES, gather 30k USDC by selling our stablecoins, UMA, KNC, APW, and CNC, and withdraw all our liquidity from the JRT-USDC 90/10 Balancer pool to become an LP in the USDC-jEUR Liquidity Pool on Polygon with a minimum health ratio of 120%.

NO, do not become a LP.