p59 seeding Balancer pool liquidity with the Money Printer

Proposal summary

Seed the 16 jFIAT-USDC Balancer pools on Polygon with $80k jFIAT printed through the Money Printer and $80k USDC from a loan from JARVIS LTD.

Details

The Money Printer can print jFIATs using different modules. We already have used one of them (the Direct Deposit module) to seed money markets (Aave, Market, Midas).

We can use another module to print jFIATs and deposit them into the treasury multi-sig. The idea is to print $5000 of each jFIAT on Polygon (16 jFIATs) and to pair each of them with 5000 USDC. The USDC comes from Jarvis LTD as a 0-interest loan.

We are going to deploy a gauge for each of these pools to receive BAL, and Jarvis LTD will use their veBAL and vlAURA to vote for these pools.

The treasury and Jarvis LTD will equally share the yield generated by these pools (incentives and trading fees), as well as the yield associated with using the BPT as collateral.

If, after 12 months, the price of USDC goes up against the jFIATs, the treasury will give its surplus to Jarvis LTD (there will be more jFIAT in the pool). If the price of USDC goes down against the jFIATs, the treasury will inherit a bad debt that it will need to reimburse (there will be less jFIAT in the pool, so the treasury will need to buy more jFIAT from the open market and burn them).

Motivation

1. To list all our stablecoins on Coingecko, we need at least $10k of liquidity for each of them.

2. These pools will generate arbitrages which will generate trading fees on the primary market.

3. Use the BPT tokens as collateral in our Midas pool to borrow assets and farm with them.

The risk is pretty limited: since there is a price impact when trading with an AMM, users will only buy a limited amount of uncollateralized jFIATs from these pools; when they do so, it will, in most cases, open roo, for an arbitrage: an arbitrageur can acquire over-collateralized jFIATs from Synthereum (Liquidity Pool or Credit line) or from secondary markets (AMM or money markets), and can sell them in the pool. This will mint new over-collateralized jFIATs, and therefore the quantity of uncollateralized jFIATs in circulation will remain low.