Summary:
Use the 43,478.26 of $Toke in the APW DAO treasury here to vote for the allocation of liquidity to the apw/eth pair on a dex.
Context:
Prompted by User @spicysoup on discord(winery), who pointed out that most of the toke votes were pointed to apw/tapw curve pool. This pool does nothing to benefit our liquidity as it is only for users to quickly swap the apw for tapw and back.
Rationale:
By utilizing tokemak liquidity to boost the apw/eth pair, dao2dao swaps and large purchases by users will suffer less slippage.
If the DAO decides to vote for a dex
Use the multisig to create a transaction that shifts toke votes from the curve apw/tapw to the selected dex via tokemak pro-view or directly via the tokemak contract(I am unsure of how that specific process would be executed)
Voting options:
Keep votes in curve apw/tapw pair(do nothing)
Move votes to Uniswap v2 apw/eth pair
Move votes to Sushiswap apw/eth pair
Move votes to Balancer V2 apw/eth pair
What DEX should the Toke Votes in the APW DAO Treasury be Moved to?
We have several million dollars worth of liquidity to direct within Tokemak. Switching our TOKE votes from APW/tAPW pool to Sushiswap where the pool2 liquidity is should be pretty straight forward and a no brainer.
There’s also been some talk about whether we should move pool2 liquidity to curve v2 or bancor. I’d be in favour of either once they are feasible (curve v2 with tokemak currently isn’t). For the moment directly liquidity to sushi should be the immediate priority, then decide next steps on pool2 future.
With the ~$5 mil from Tokemak + $1.8 mil from sushiswap farming + $0.9 mil from bancor we could have a total of $7.7 mil in liquidity if a user uses an aggregator. That would be absolutely insane for a small cap like $APW and would give us a lot of legitimacy in the space.
Once we complete the redirection of LP in Toke, I would like to see if we can remove the incentives from the sushiswap lp and redeploy that to a quickswap pool on polygon. Getting another strong liquidity position on another chain would give us access to another liquidity pool and give those users an easier time to access the value of their apw rewards.
I like comethswap, but the possible liquidity and attention we could get from a quickswap farm and listing would be very helpful to us in building up the polygon side of APW.
I agree that tAPW/APW isn’t really useful, but I’m not sure about redirecting all the liquidity on Sushiswap because if this deploy 4-5M$ as mentioned on discord, it will be really hard for the price to move up or down, and I guess no one wants to have a stablecoin APW because of too much liquidity for a low cap
However what we could do is deploy progressively some liquidity on sushi every week until Curve V2 pools are live, then switch the POL on Curve and ask a gauge to farm CRV with the treasury
True, stable coin apw is problematic for us, but in that same kind of thought wouldn’t it be better to also remove the Ethereum network apw/eth sushiswap liquidity mining program?
Then replace that with the Tokemak sushiswap apw/eth pool?
But instead of voting for all votes to go to sushiswap we only use 20k Toke to get $1.44 mil liquidity? Therefore, we save money on the liquidity mining(freeing them up to be used on a different chain ), and reduce our liquidity in sushiswap so price can have more free movement.
The reason I choose 20k vs half is because we also need to consider the $800k in liquidity from Bancor that could be added as well. Overall leaving us with over $2.24 million in liquidity.
Also, @Dydymoon what are your thoughts on an APW governance meeting discord, google meet, or zoom call to discuss this and the direction of the protocol with others(sort of like how MakerDAO has governance calls to keep everyone in the loop).
No issue doing it progressively. But obviously illiquidity also mean steeper declines during selling though, plus it makes it tougher for DAOs to market buy into the APWars rather than D2D treasury swaps which should be very selectively used.
Do we have a target ratio for liquidity to market cap?
Ultimately we’ve bribed for a tokemak reactor and bought a big bag of toke for the treasury, so we definitely ought to be using it more productively than we currently are.
We don’t have a target ratio, but definitely a target maximum of keeping total liquidity below our current marketcap. I talk more on this here, but we should definitely aim to not allow our liquidity to get too big that it hampers the price movement of the apw token.
Hey guys, sorry I took so long to answer, I’m in Amsterdam this week so I have a bit less time.
I had a call with Tokemak team, which informed that considering no one voted on our pool, they redirected the maximum liquidity possible on APW/ETH sushi pair, which is equal to the Tokemak reserve in APW (780k tokens iirc) matched with Some ETH so around 1.3M liquidity
What we can do about this for the coming weeks is decide if we rather let all the liquidity deployed there, or if we want to cancel the redirection and start over progressively, I’ll try to draft something and post it in the comments so we can vote for it soon
Then, we need to look at the liquidity:
APW/ETH sushi : 1.42M mostly redirected by Tokemak
APW/ETH Uni : 20k$
Soon Bancor single sided: 800k$
So this should bring us to 2.25M$ of liquidity with everything redirected from tokemak
I agree that it would be useful to have a ratio between liquidity and MCap so we can base our decisions on it
I just saw I forgot to answer this, and yes I fully agree that community calls 1 or 2x a month could be really cool to update everyone
Maybe we could create a discord Channel or a topic in discussion category so we can start to plan it
APGP 5 (v2) : How to manage the current APW liquidity with the Toke votes ?
Summary:
Decide how to manage the TOKE votes to deploy some liquidity on Tokemak.
Context:
The discussion started on April 5 by @CoolGuy who proposed to vote for redirecting the liqudiity on Tokemak to the Sushi AP/ETH LP.
However, Tokemak informed us that in order to be proactive with our votes (because we didn’t voted) they deployed the some liquidity possible capped to their reserve, which represent 740K APW + 214 ETH as showed above. Some holders also removed liquidity in the past days.
Finally this morning I noticed an increase of the liquidity deployed up to 1.2M APW + 308 ETH, representing 95% of the APW/ETH Sushi LP, probably related to the multiplicator but waiting for their feedback on this one
The new state of the liquidity is the following :
Sushi APW/ETH : 1.87M$ ( 95% is deployed by Tokemak)
Uni APW/ETH: 19.5K$
Bancor (soon) around 800K$
This push the current liquidity to 2.69M$.
Rationale:
This proposal aims to let the DAO decide if we should reduce the liquidity or keep it as it is.
If the DAO decide to reduce the liquidity, we will ask Tokemak to withdraw the deployed liquidity and add it progressively by tranches of 200K$ each week by voting.
If the DAO decides to keep the liquidity as it is, there is nothing to do beside actually voting for the full deployment once
It’s not possible for now to increase the liquidity on Tokemak, however we can think about a way to increase the protocol owned liquidity on another proposal.
Means:
None
Technical implementation:
Ask Tokemak to withdraw the deployed liquidity
Vote weekly to add progressively the liquidity if this option is voted
Voting options:
Reduce the liquidity on Tokemak
Keep the liquidity as it is
Abstain
), and reduce our liquidity in sushiswap so price can have more free movement.