VFDP-3: Liquidity Reallocation and Efficient Capital Utilization

This proposal advocates to:

1. Initiate a transaction to remove the provided liquidity from the VITA-FAST multisig pool.
2. Transfer the VITA-FAST tokens from the pool back to the VitaDAO treasury.
3. Mint 23,555 new VITA-FAST tokens, and transfer the newly minted tokens along with the difference to total the 100k tokens back to VitaDAO.
4. Convert 39.86 ETH into stETH to earn yield

Part I: Removal of DAO Liquidity from VITA-FAST Pool

Given the existing liquidity in the VITA-FAST/USDC and VITA-FAST/VITA LP pools which amounts to > $800k, it is proposed that the liquidity provided by VitaDAO in the VITA-FAST / WETH liquidity pool amounting to $110k is removed.

Action: Initiate a transaction to remove the provided liquidity from the VITA-FAST multisig pool.

Rationale: The initial liquidity provided by VitaDAO to support the VITA-FAST token is no longer crucial due to the ample liquidity from other contributors in the VITA-FAST / VITA pool. VitaDAO will continue to maintain liquidity in the form of a VITA-FAST / USDC pool.

Part II: Returning VITA-FAST Tokens to VitaDAO

Given VitaDAO's support in the project's early days, it is proposed that the VITA-FAST tokens lent by VitaDAO for liquidity purposes be returned in full.

Action: Transfer the VITA-FAST tokens from the pool back to the VitaDAO treasury.

Rationale: VitaDAO's gesture of lending the VITA-FAST tokens for initial liquidity was instrumental, and with the current liquidity status, it is time to reciprocate by returning the tokens.

Part III: Minting of Difference in Tokens for VitaDAO

To compensate VitaDAO for the accumulated ETH from the pool, it is proposed that VITA-FAST DAO mints the difference in tokens, equating to 23,555 new VITA-FAST tokens, and return the full 100k tokens to VitaDAO.

Action: Mint 23,555 new VITA-FAST tokens, and transfer the newly minted tokens along with the difference to total the 100k tokens back to VitaDAO.

Rationale: This acts as a token of appreciation for VitaDAO allowing VITA-FAST to keep its accumulated ETH. This move represents a 2.355% dilution but offers VITA-FAST at the current market value ($1.3M).

Part IV: Efficient Capital Allocation via stETH

To ensure the capital remains productive post-liquidity removal, it is proposed that 3/4 of the 53.15 ETH (39.86 ETH) from the LP be reallocated into stETH, offering a yield of ~3.6% APY at current rates.

Action: Convert 39.86 ETH into stETH to earn yield

Rationale: This action ensures that the ETH remains capital efficient and continuously earns a return, contributing to further research endeavors.

Members of the DAO are urged to review the provided links and evidence supporting this proposal. Voting will be opened for a stipulated period, and based on the consensus reached, necessary actions will be taken. We are deeply appreciative of VitaDAO's support and look forward to a continued partnership.