Vote 2b: Move liquidity from LBP to other AMMs and start GRO incentive program

PROPOSAL SUMMARY

If executed, this proposal will:

  1. Remove liquidity from the LBP into the underlying assets (GRO and USDC)
  2. Add liquidity pairs for GRO into various AMMs
  3. Return the 2.65M USDC loan to Grwth Lbs Limited (plus any applicable interest)
  4. Execute liquidity mining program to distribute GRO to users of Gro protocol

Each of these actions will be executed by the Gro DAO multi-sig with any necessary decisions delegated to the teams building Gro protocol and / or the multi-sig itself.

CLOSE THE LBP

This proposal authorises the Gro DAO multi-sig to remove liquidity from the LBP, at some point during the 7 days after the end of the LBP (the end is proposed to be around 1600 UTC on Friday 1 October).

This vote delegates authority to the team building Gro protocol and the multi-sig to decide on an appropriate exit point based on the agreed objectives of (1) distributing the Gro DAO Token in a way that benefits the Gro DAO, (2) attracting liquidity to Gro protocol, and (3) ensuring a smooth and orderly process.

NEW POOLS AND LIQUIDITY MINING PROGRAM

This proposal authorises the Gro DAO multi-sig to initialise and contribute liquidity to pools on AMMs which may include (but are not limited to) Uniswap, Sushiswap, Balancer.

Gro DAO Treasury multi-sig will contribute what the team consider to be sufficient liquidity for each and any of those pools to function well.

The liquidity mining rewards program will be initialised together with the pools, and will be designed with vesting conditions in such a way that incentivises long term use of Gro protocol (and discourages token flipping or dumping). This means that all non-LBP tokens have vesting conditions which should support a more stable and orderly price development of the GRO DAO token.

Not more than 20% of the total GRO allocated for community incentives (i.e. 9m GRO out of 45m GRO allocated for community incentives) will be distributed without a further governance vote.

This vote delegates authority to the teams building Gro protocol and the multi-sig to decide on appropriate pools and liquidity mining structures and rewards based on the agreed objectives of (1) distributing the Gro DAO token in a way that benefits the Gro DAO, (2) attracting liquidity to Gro protocol, and (3) ensuring a smooth and orderly market for the token itself.

PROPOSAL BACKGROUND

This proposal is conditional on two pre-existing DAO governance votes:

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I think we should clarify in the proposal why this is good for $GRO holders. While liquidity mining could be perceived as dilutive, it’s essential to drive TVL and grow the protocol. The various constraints put in place through vesting should also stabilise the price and concentrate control/governance to those with a longer commitment to the protocol.

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Here’s a Twitter thread that I came across highlighting the difference in user base and user behaviour between SushiSwap and UniSwap.

Sushi vs uni

Basically, Sushi’s user base is predominantly DeFi power users who hold longer and trade with larger sizes. On the other hand, Uni users behave more like retail traders who buy and sell tokens more frequently.

It might be useful to keep in mind as the team decide the amount of tokens to allocate to each AMM pool.

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Great feedback @graadient and @Tudou and lots to consider in how to implement it

Voting is now live on Snapshot: please get voting!

https://vote.gro.xyz/#/proposal/QmNdxwVDMk6EYNXz7xtbLLhqGnfD9f8V4N4CbnkTAEe4o6