Where do we put the 5 ETH from Optimism (which liquidity pool)?

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We have 5ETH from Optimism that we are planning to use to provide liquidity! We also have lots of GIV in our liquidity multisig, available to use to pair. This will be DAO-owned liquidity that will help support the price of GIV and continue to do so after our GIVfarm rewards are turned off in June.

Our new “Treasury Management” WG met today to discuss potential options for this with the following criteria:

  • we want it to be easy and fast to implement
  • consider that 5 ETH is only a small amount to play with with
  • the intention is to provide liquidity and then not remove it/touch it for a long time

We came up with several options and narrowed it down to three. Explanations/justifications below.

Note that all proposals are GIV / stable pairs. When GIV is paired with a stable currency, it makes the price of GIV less volatile overall. Also, currently all our existing liquidity is in GIV / volatile currency pairs (GIV/WETH, GIV/HNY), so it would help us diversify to have a GIV / stable pair.

The Options!

  1. GIV/DAI Univ2 on Mainnet
    We are likely to turn off or change the rewards for univ3 quite soon, likely leading to a decrease in uniswap liquidity. Uniswap is a huge exchange and having liquidity on there is valuable to us. Having liquidity on Mainnet gives the token more legitimacy. Pairing with DAI makes it easy for people to bridge xDai to mainnet and get GIV.

  2. 80GIV/20DAI Balancer on Mainnet
    This would allow us to provide a larger amount of liquidity over all… converting the 5ETH to DAI and then providing 20 ETH worth of GIV. Mainnet liquidity is valuable for token legitimacy. The 80 GIV/ 20 DAI pair means that when the price of GIV goes up, the liquidity pool token increases in value faster than a 50/50 pair… but if GIV goes down, the liquidity pool token decreases in value faster too.

  3. GIV/xDai Honeyswap on Gnosis Chain
    Gnosis chain is useful because GIV has a lot of GC utility with the GIVgarden & GIVbacks. We like Honeyswap because it helps support 1hive, and has the advantages of a GIV/stable pair (as above).

Where should we provide liquidity?

  • GIV/DAI Univ2 on Mainnet
  • 80GIV/20DAI Balancer on Mainnet
  • GIV/xDAI Honeyswap on Gnosis Chain
  • Abstain

0 voters

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The people have spoken! Let’s use this 5 ETH for a GIV/DAI Univ2 on Mainnet. So we need to:

  • sell the ETH for DAI
  • get the GIV from our mainnet liquidity multisig
  • create the GIV/DAI univ2 pool on mainnet.

@mitch since you are great at this stuff, would you be down to execute?

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