Summary

Molecule has expressed intent on opening a GROW/ETH pool on Base chain in late February or early March. The aim of this proposal is to promote the pool’s stable expansion by rewarding existing and new GROW holders contributing liquidity through GROW incentives.

Overview

Background

To further expand accessibility to GROW, Molecule and bio.xyz are set to launch a GROW/ETH pool on Aerodrome Finance 4 shortly, enabling direct transactions of GROW on the Base blockchain. Molecule will contribute all necessary GROW and ETH for the pool’s inception.

ValleyDAO aims to enhance this pool’s liquidity by providing additional GROW tokens for yield farming incentives, with Aerodrome Finance offering supplementary rewards to encourage GROW token holders to participate in liquidity provision.

Rationale

Base chain has been identified as a chain of strategic importance due to its cost efficiency and integration with Coinbase, making it a natural onboarding space for DeSci enthusiasts who are not yet familiar with the Web3 ecosystem. As of this proposal, Aerodrome Finance leads as the top decentralised exchange (DEX) on Base, measured by total value locked (TVL).

For ValleyDAO, supporting a pool on Aerodrome Finance aligns with our objectives by decreasing gas fees incurred through trading GROW, thus broadening participation and engagement with the GROW token. Encouraging liquidity provision not only benefits participants through fees and incentives but also stabilises GROW’s market value by deepening liquidity.

Expectations

Reduced Price Volatility: By incentivising community LPs, GROW’s overall liquidity offering will be expanded, making the token less susceptible to price fluctuations. This consolidates our continued commitment to strengthening the ValleyDAO ecosystem and ensuring sustainable growth of the project.

Yield Farming Rewards: GROW token holders will have opportunities to earn additional rewards through yield farming. By providing liquidity on Uniswap with their GROW tokens, holders can earn a share of the platform’s revenue or additional tokens as rewards.

Implementation

1. Enabling users to bridge GROW using Base Bridge: ValleyDAO intends to make GROW bridgeable on Base bridge to allow the DAO and community members to bridge tokens onto Base from Ethereum Mainnet.

2. Supply LP incentives to Aerodrome Finance We propose allocating 500 GROW weekly over 13 weeks (totaling 6500 GROW) from ValleyDAO’s Ecosystem Fund to incentivize liquidity provision on Aerodrome Finance. These incentives will be matched by Aerodrome Finance through their AERO token.

Conclusion

This proposal seeks to solidify our commitment to fostering a vibrant, community-driven liquidity ecosystem on Base. By incentivizing participation and providing clear benefits for liquidity providers, we aim to strengthen both GROW’s value and the overall ValleyDAO community.