RGP-7: Using DAO assets to LP




With the Uniswap V3 liquidity mining program in RGP-4 ending, there will be less incentive for LPs to provide liquidity on Uniswap. This proposal puts forward the idea for the DAO treasury to provide liquidity for the RBN/ETH Uniswap V2 pool, being the LP of last resort. The ETH and RBN required for the LP position will be put up by the DAO’s multisig.

Why Uniswap V2?

Uni V2 has 2 nice properties as compared to Uni V3 for this use case.

1. Fair, infinite range LPing
Instead of having active MMs shift around ranges and compete for flow, Uni V2 puts all LPs on the same page by default — the infinite range. This does not put a passive LP like the Ribbon DAO at a disadvantage to other LPs.

2. Fungibility of LP Share
We have strong interest in using projects like Olympus Pro or Tokemak to build Protocol-Owned Liquidity over time. This works best in a world where the LP Shares are fungible.

Proposed Position

DEX: Uniswap V2
Pool: RBN/ETH (0.3% LP fee)
ETH amount: 500
RBN amount: Not more than 1,450,000 RBN

Target price: <2900 RBN per ETH

The Dao Treasury currently has over 800 ETH and 1.5 WBTC in it. Although this is a decent chunk of the DAO’s current ETH reserves, we believe that the protocol fee accrual + more diversification efforts like Olympus Pro will rebuild the DAO Treasury’s ETH position over time.


If the vote passes the execution and timelines will be as follows:

  • Dec 7 0200 hours UTC - Snapshot vote is put up
  • Dec 7 1200 hours UTC - Uniswap LM program concludes
  • Dec 8 1500 hours UTC - Snapshot vote concludes
  • Dec 8 1600 hours UTC - Uniswap V3 positions unstaked forcibly
  • Dec 8 1600 hours UTC - If passed, DAO LPs RBN/ETH

Snapshot: Snapshot

1 Like

Great idea!

This will feedback LP fees to the DAO as well.

As a question: why not run the same full range xyk strategy on the UNI v3 pool itself?

The tradeoff here is that fees may be lesser compared to concentrated liquidity providers in the UNI v3 pool. But it would also incentivize concentrated liquidity providers to compete for better pricing than the DAOs full range strategy.