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Wolf Works DAOWolf Works DAOby0xFEF6399457c8B48996f9dcE8EDeA37ECe0c576790xFEF6…7679

USDC Reward for providing liquidity in the WLD /USDC pool

Voting ended over 3 years agoFailed

80% of the big case payout goes to WLD hodler and 20% will stay in the treasury.

Proposal:

Open the liquidity pool for everyone after the treasury receives the award. Take 10% (but limited to max. 5mio $) of the amount from the big case and distribute it on a daily basis over a year to the people which provides liquidity in the pool. (would be +13700$ per day over a year if the full 5mio$ can be taken)

Calculations:

  • the full 1 070 000 000$ or more can be claimed. WLD treasury receives 214mio$ 10% are 21,4mio$ but we take max. 5mio$ for LP rewards. 5mio $reward over a year means that we have 100% apr on the pool when the TVL of the pool is 5mio$. I expect after time the pool apr will shrink down to 30% or even less apr. This would mean that the TVL of pool is around 18mio$ which is 20x more then now and you still get 30% apr if you provide liquidity in the pool. At the current price of WLD around 700mio WLD would be needed which would drive the demand and price of WLD drastically.

  • 250 000 000$ can be claimed. WLD treasury receives 50mio$ 10% are 5mio$ bo we take the whole 5mio$ for LP rewards. 5mio$ reward over a year means that we have 100% apr on the pool when the TVL of the pool is 5mio$. I expect the same as above after time the pool apr will shrink down to 30% or even less apr. This would mean that the TVL of pool is around 18mio$ which is 20x more then now and you still get 30% apr if you provide liquidity in the pool.At the current price of WLD around 700mio WLD would be needed which would drive the demand and price of WLD drastically.

  • 50 000 000$ can be claimed. WLD treasury receives 10mio$ 10% are 1mio$ so we take the whole 1mio$ for LP rewards. 1mio$ reward over a year means that we have 100% apr on the pool when the TVL of the pool is 1mio$. I expect the same as above after time the pool apr will shrink down to 30% or even less apr. This would mean that the TVL of pool is around 3,6mio$ which is 4,5x more then now and you still get 30% apr if you provide liquidity in the pool. At the current price of WLD around 140mio WLD would be needed which would drive the demand and price of WLD.

Advantage of this proposal:

  • more liquidity means the price is more stable and less p&d behavior
  • you can buy/sell bigger amounts without moving the price by yourself
  • drives the demand for WLD and rewards the people who contribute inn the WLD ecosystem actively and not only passive WLD hodler
  • volume will increase because bigger orders can be executed in a bigger pool,
    this will help to get listed on other exchanges.
  • due to the fact that the reward is in USDC and not in WLD there is no inflation of the token and even more buy pressure will occur when people start to compound their LP rewards
  • people wont sell their WLD that easy when they know they can get a nice additional apr on them even after the snapshot and the big payout
  • I expect that this proposal will drive the price of WLD upwards which will generate publicity and FOMO and can attract new people and investors and maybe brings us in the TOP 100 crypto projects.
  • WLD hodler can provide liquidity really easy because they have already WLD
    • USDC from the payout in their wallet.

Disadvantage of this proposal:

  • in a very worse case where the case payout is not that big the full 10% needs to be taken and only 10% would be left in the treasury.
  • proposal needs to be renewed after the first year because people will leave the pool if no rewards get paid out anymore. The DAO needs to find a way in this first year to fund future rewards for the liquidity miner (except the case payout was really big)

if we don't like the numbers (for example 10% or 5mio or something) but like the idea in general we can propose this proposal again with other numbers if this is the reason why it did not passed the voting.

sry for my typo's

Off-Chain Vote

For
9.07M WLD97.1%
Against
272.71K WLD2.9%
Abstain
0 WLD0%
Quorum:1%
Download mobile app to vote

Timeline

Nov 26, 2022Proposal created
Nov 26, 2022Proposal vote started
Dec 03, 2022Proposal vote ended
Oct 26, 2023Proposal updated