$10k Shared Liquidity with GIV < > USDGLO (And possibility to add $10k later)

Giveth Proposals
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Tl;Dr: This proposal is set up a $10k USD ($5k + $5k) shared (Giveth <> Glo) GIV/USDGLO liquidity pool on OP Mainnet.

About this Partnership

Glo Dollar is a fiat-backed stablecoin that funds public goods. USDGLO can be used for donating to projects on Giveth on Ethereum, OP Mainnet, Arbitrum, Celo & Polygon PoS. Glo Dollar has also sponsored the matching pool of two Giveth QF rounds (Giving Season Dec '23 & Galactic Giving May '24) and we are proud to have distributed the matching pools for those two QF rounds in USDGLO.

The Glo Dollar team reached out to the GIVeconomy WG and proposed to do a token swap to set up some shared liquidity on Optimism.

This was discussed in a recent GIVeconomy call & the GIVeconomy WGs believes that this will both support the GIV token further with some additional DAO-owned liquidity on OP mainnet, and will serve to strengthen our ties w/ Glo - a super value-aligned public goods team!

How this would work

If this proposal is approved, we’ll send 5000 USD worth of GIV tokens (GIV token amount to be determined at the time of set-up) from the Giveth liquidity multisig to the treasury handler on OP Mainnet. Glo Dollar will send 5000 USDGLO there as well, the treasury handler will set up the GIV <> USDGLO LP, and then will send 1/2 the LP to the Giveth liquidity multisig, and 1/2 to Glo Dollar. Each team will then effectively become a steward of their half of this liquidity.

We may request an additional $5000 of GIV (and USDGLO) to top-up this liquidity in the near-to-middle term future. If/when that time comes, I’ll make an update to this forum post.

Next steps

This forum post will remain open for 5 days for advice process and then I’ll move it to a Snapshot for on-chain voting.

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I support this proposal and love to see Giveth and Glo Dollar working closer together!

My outstanding questions are where will this pool live? Will the tokens just reside in a smart contract on OP mainnet that any swap protocol can tap into? And are there any concerns with impermanent loss for a pool this size?

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Thanks @koday!

Since GIV is volatile and will be paired with USDGLO which is a stable coin, there will definitely be some impermanent loss. The pairing with a stable could also dampen some price pumps for GIV (if, e.g. ETH pumps) but it will also dampen dumps (if ETH dumps) - but in any case, I think the risks are pretty minimal because it’s a relatively small pool.

I think we will probably create this LP on velodrome on Optimism, that is where we have most of our other OP liquidity, but open to suggestions. Maybe we can discuss this in the GIVeconomy call and loop in the Glo team.

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This proposal is up for a vote on Snapshot:
https://snapshot.org/#/giv.eth/proposal/0xe40e0fcbf194e73eeb6e612a3269e16bb76da6408976d3f7bef5559b62eeb626

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Hey folks!

This proposal has passed in Snapshot and we are in the process of setting up the LP using 448,230 GIV from the liquidity multisig & 5000 USDGLO already sent to our treasury handler from Glo Dollar.

This LP will be set up on Uniswap v3 on OP Mainnet, as this is where there is the most liquidity for Glo Dollar on Optimism already.

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This LP was setup successfully on Uniswap OP Mainnet (Univ2). 1/2 the $10k LP was send to the Glo Dollar team, and the other 1/2 is help by the Giveth liquidity multisig.

This proposal’s first phase is complete.

If we have the opportunity to increase the LP size another $10k, we will provide an update here.

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