Use profit to generate liquidity

Since the launch of Tetu, the protocol has operated with liquidity levels that are below satisfactory, causing an inconvenient price impact for both those who want to buy and those who want to sell TETU. Limited liquidity also makes it difficult for investors who want to build a larger TETU position. Members of the Tetu community were able to identify the problem of low liquidity and its consequences. They were also accurate in suggesting effective solutions. A solid suggestion proposed by the community is protocol-owned liquidity. It is possible to build and start managing the protocol with its own liquidity, creating liquidity over time using resources from the protocol itself. The protocol-owned liquidity would be in the FundKeeper contract. Own liquidity will be beneficial to the protocol, however, it is necessary to decide through this governance proposal how this protocol-owned liquidity will be built.

Currently, Tetu's profit split on 90/10: 90% Buyback TETU for xTETU holders 10% to FundKeeper for the second stage

The proposal is split 90% in two directions X% for TETU buyback for Profit Share Y% will be used to create Protocol owned liquidity

Creating liquidity requires TETU and USDC. Thus, we can use half of Y% amount for buyback TETU and a half keep in USDC. This option will keep buybacks on similar levels, precisely a 25% TETU buyback reduction as 25% of total buyback would be used to pair TETU with USDC.

Or use a part of TETU emission for this purpose. It will increase TETU on the free market and reduce buying pressure but we will generate liquidity more aggressively.

X/Y ratio will be an adjustable option and able to change from DAO in the future. We offer to start with 50/50 ratio.

1. Use Y% for liquidity without TETU emissions.

2. Use part of TETU emissions for liquidity generation.

3. Do nothing. Keep 100% Buy Back for xTETU holders.