There was a great discussion around supporting RLY/ETH liquidity on Uniswap, given that it represents a small share of the overall liquidity, but the lion’s share of transaction volume despite offering users greater slippage than the Balancer exchange.
Whereas more users will likely head to Uniswap given it’s prominance, and it is in Rally’s best interest to offer $RLY holders the best experience possible, we would like to bolster Uniswap Liquidity.
Proposal: Invest a share of the community treasury into the Uniswap liquidity pool. I propose we invest a share equivalent to the yield from the designated 3pool vault / LM pool. Uniswap holdings not to exceed 20% of overall Community Treasury.
I suggest deferring to @DaddyFatSax and the Rally team to decide on the optimal funds from the treasury to move(exchange) for this purpose, so long as the amount is roughly equivalent to what is being added to the Treasury from the 3pool yield, perhaps on a weekly basis.
Open to further thoughts and suggestions, and asking for someone to submit the proposal on my behalf since I’m not a creator. Thanks.
-Grand
The team are also trying to capture some potential BAL rewards from the staked Balancer pools. If that works, could this also be a good use for those rewards? As the BAL comes in each week, convert to RLY + ETH and then add liquidity to the pool.
There was also the idea to rebalance the LP reward ratio more in favour of the Uniswap pool. Do we want to look at that too?
Re: balancer rewards
I’m not sure what the team is currently doing with the BAL rewards. Liquidating to fund creator coin grants? I like the idea of having an additional source to bolster liquidity, but it’s ultimately a question of how much working capital Rally needs to meet it’s obligations, vs. what it can reinvest in the liquidity pool(s).
Something that dovetails to your rebalance question, is how large a position rally wants to take so as not to dilute LP rewards too much.
I think we should move the rebalance question to a separate thread and proposal. I’d add that might make sense to kick up the block rewards (so add another 7.5 rly/block or whatever it is) and keep it even across the now 6 pools for another week until we have more data with the bridge up and running, at least v1. Will you post a thread on rebalance? Thanks!
I’ve left off suggesting an increase across all pools as I assumed the dilution of the 5 original pools was already agreed as part of the YDV pool addition idea.
I love the creative thinking here, but I’m also hesitant to support this before we see changes to the Uniswap LP rewards. I think we need to be careful about how we spend the treasury, as it could be a slippery slope to short-term alignment instead of long-term.