Proposal #2: Balancer Smart Pool for $ROBOT

Official Vote: https://snapshot.page/#/metafactory/proposal/QmeH6mE5Rw7msWrN61q2Phau52wNGkDxNqZBc4LusEBwAf

In our past discussions around the tokenomics of ROBOT, the plan was to setup a “buy back and make” process inspired by [this blog post].(https://www.placeholder.vc/blog/2020/9/17/stop-burning-tokens-buyback-and-make-instead)

Now that ROBOT is rolling out, its time we solidify plans around the liquidity pool. Balancer Smart Pools controlled by the multisig are the obvious choice here, but we need to decide on the following pool parameters:

  • ROBOT weight
  • ETH weight
  • Swap Fee
  • Can pause swapping
  • Can change swap fee
  • Can change weights
  • Can change tokens
  • Can restrict LPs to a whitelist
  • Can limit total BPT supply

All these parameters can be updated in the future through the multisig so we aren’t tied to our initial decisions if we decide we want to change the weights/fees or add more tokens to the pool. I’m proposing the following parameters to start with based on my experience launching MetaGame’s Balancer Smart Pool for SEED which has proven to work well:

  • 70% ROBOT / 30% ETH (don’t need as much ETH to put up liquidity, retain more exposure to ROBOT to mitigate impermanent loss)
  • 4.20% Swap Fee (incentive for members to provide liquidity and mitigate IL)
  • Can pause swapping: false (no need for this, less trust assumptions)
  • Can change swap fee: true (in case we want to reduce it down the road once we have a lot more liquidity and volume)
  • Can change weights: true (in case we want to shift ratios of tokens)
  • Can change tokens: true (in case we want to add new tokens, e.g. 30% DAI as a hedge)
  • Can restrict LPs to a whitelist: true (in case we want to restrict LP rewards to existing ROBOT holders only)
  • Can limit total BPT supply: false (no need)

Would be great to get y’alls feedback on this. If there’s no major objections / concerns, I will put it up to official vote tomorrow so that we can setup the pool by the weekend. ROBOT distributions will be going out to buyers tomorrow and designers a day or two after that. Once that’s done, transfers will be unlocked and the liquidity pool will be created.

9 Likes

I have no issues with any of these parameters. The main one worth debating I think is the swap fee, which may be a bit high, but considering we can change it down the road I think it’s a fine starting place.

1 Like

I concur with @crytodiplo.

All these parameters make perfect sense. Over the long term we should look to get the pool as close to 50/50 as possible so 70/30 feels like a great starting point.

Will definitely be voting in favor and looking to provide liquidity!

Quick recap of yesterday’s call on this subject :

  • 4,20 $ starting price is way to go
  • Balancer pool prefered for price exploration phase and reduce IL
  • 4,20% fee as a community incentive feels good as it strongly favors $ROBOT LP and Curation Game utility over trading
  • Whitelisting LPs is an option down the line but not required for pool launch (no freeriders rn)
  • Exclusive phygital drop next week
  • Party in Cryptovoxel next friday
  • Community members are welcome to join the CM effort moving onward

Would be good to have this kind of report every over community call, happy to help with that

5 Likes

How would this work? Stated another way, what would LP rewards look like at inception without the implementation of a whitelist?

Everything else here looks 11/10!

1 Like

Really appreciate the notes! Would love for you to help with doing this in the future too, that’s exactly what the Ops / Gov $ROBOT allocation is for :slight_smile:

2 Likes

I think we would introduce a whitelist later on if/when we decide to do a proper liquidity mining program. Could coincide with a reduction in the swap fee as well.

E.g. drop swap fee from 4.20% to 1% and setup a month long liquidity mining program, whitelisted to everyone who was already LPing and anyone who received the ROBOT airdrop

2 Likes

Sure man, count me in :slight_smile: