ULP Pool Replacement

Short Name

UIP-2

Long Name

ULP Pool Replacement

Area of Impact

LiquidityPool

Proposal Description

UIP-2 asks our community if we should

1. continue with the current liquidity pool (“Old Pool”)

OR

2. replace the current liquidity pool with a new liquidity pool (“New Pool”).

If choice (1) passes, the returned USDT (561,141.838943429001009398) will be injected into the Old Pool, which will continue operating, with no new pool added, and will open for creation and redemption. Existing ULP holders will be able to redeem their holdings. New users will be able to inject USDT and create new ULP.

If choice (2) passes, the returned USDT will be directly distributed to the stakeholders of the Old Pool, which will open for REDEMPTION ONLY. Existing open positions guaranteed by the Old Pool will continue to be honored by the Old Pool, but these must be closed by 2PM UTC Apr 18, 2023 (after which they will be liquidated) and there will be no new positions added to the Old Pool. The new pool will be deployed and open for creation and redemption. The New Pool will act as the central counterpart to all trades (except those already guaranteed by the Old Pool) going forward. All the esUNW emissions will be directed to the New Pool and zero to the Old Pool when the New Pool is deployed.

For the Revenue Distribution, refer to UIP-1

If UIP-1 passes, the relevant revenue will be re-invested back into the respective pool. If UIP-1 does not pass, all the revenue distribution will be directed to the New Pool and zero to the Old Pool.

Background

Please visit our Discord channel: https://discord.com/channels/1037556934615769130/1041978754613903372/1096052971156029541