Create new GEAR/ETH liquidity pool on SushiSwap and seed it with $25k GEAR from treasury + $25k of ETH bought with DAI from Wells Fargo business loan ($50k of liquidity in total).
Quick recap of what GEAR is for newbs: GEAR is a liquidity pool token on Balancer that currently represents 70% ROBOT and 30% ETH. When you deposit ROBOT and/or ETH into the pool you get back the GEAR token representing your shares in the pool just like Uniswap LP tokens. GEAR holders dont have DAO voting rights yet because of the Balancer subgraph doesn’t support smart pools but GEAR is probably going to be the only token for playing the Curation Game
Why sushiswap > uniswap? Because they’re the homies and their Onsen menu will provide liquidity incentives for GEAR/ETH pool.
Why GEAR/ETH instead of another ROBOT/ETH pool? Right now the DAO has powerful levers for influencing ROBOT economy by controlling parameters like the swap fee onfor trading against the GEAR pool. By creating a separate ROBOT/ETH pool outside of GEAR we would be losing a lot of power to control our community economy with mostly negative benefits to our community (higher impermanent loss, lower LP fees). ~20% of all ROBOT in circulation is sitting in GEAR unincentivized with almost none on uniswap or sushiswap so it’s safe to say we like it how it is.
- Start establishing $GEAR as primary utility token in MetaFactory ecosystem
- Keeps control of $ROBOT economy with DAO through Balancer pool parameters
- Increase volume and LP fees for both ROBOT/ETH and GEAR/ETH pools from arbitrage traders.
- liquidity mining rewards from Sushiswap Onsen menu for GEAR/ETH LPs
- Easier access to joining MetaFactory community by listing on a major DEX
- (indirect benefit) Workaround to get GEAR LPs voting power by using Sushiswap subgraph
- Way more impermanent loss and less fees compared to ROBOT/ETH pool on Balancer
- Higher exposure to $ETH than $ROBOT for GEAR/ETH LPs
(because GEAR is 30% $ETH)
GEAR is currently on Balancer v1 and we would like to migrate liquidity to the v2 that just launched but they don’t have smart pools yet. If we do create a GEARv1/ETH liquidity pool we will have to remove that liquidity, migrate GEARv1 to GEARv2, then create a new GEARv2/ETH liquidity pool.
P.S. If it’s too much work for the multisig to create GEAR/ETH pool + add liquidity I can create the pool first and then MF adds liquidity
- Sell $25k DAI to ETH and seed GEAR/ETH pool
- Do nothing