Author(s): @TigrisOfGaul

Summary

This proposal seeks to add protocol-owned liquidity to the vAMM-WFTM/TAROT pool on Solidly to farm SOLID emissions.

Abstract

If adopted, Tarot will add FTM-TAROT liquidity to farm SOLID when Solidly emissions begin.

Motivation

Tarot controls ~2.26% of the Solidly veNFT voting power at launch. This voting power has been used to vote on SOLID emissions for the vAMM-WFTM/TAROT pool.

Tarot is also a significant holder of SpookySwap and SpiritSwap FTM-TAROT liquidity. The liquidity from the Tarot LGE unlocks on February 16, 2022 at 20:00 GMT, and can be used to provide liquidity on other protocols for the benefit of Tarot stakeholders.

With the power of the veNFT, Tarot can begin to acquire SOLID tokens for itself:

• Our veNFT enables a SOLID emissions boost of up to 2.5x
• More voting power will enable Tarot to incentivize pools on Solidly that benefit xTAROT holders and the Tarot Protocol
• More voting power may also earn bribes and trading fees for pools on Solidly
• Farming and locking SOLID into our veNFT will accumulate more voting power
• Farming SOLID may also be directed to one or more lending pools on Tarot in the future

Therefore, it is proposed that some of the unlocked liquidity be added to the vAMM-WFTM/TAROT pool to farm SOLID emissions.

About Solidly

Solidly enables low-cost, near-zero slippage swaps on uncorrelated and highly correlated tokens. All trading fees in a Solidly pool go to users who vote for the pool's corresponding gauge. Liquidity providers may stake LP tokens in the gauge to receive incentives in the form of SOLID emissions.

Solidly and the vAMM-WFTM/TAROT variable pool on Solidly can be found here:

• Solidly
• vAMM-WFTM/TAROT

Solidly Risks

Solidly is an experimental protocol with high risk of loss. As such, the opportunity to farm SOLID emissions with protocol-owned liquidity may be capped to mitigate the risk of loss.

Specification

Should we add protocol-owned liquidity to Solidly to farm SOLID emissions?