Financial Proposal: Withdraw ANT from vesting contract + LP it in a Uniswap ANT:NATION pool

City Hall
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Financial Proposal: Withdrawal of ANT Tokens from Vesting Contract and LP in Uniswap ANT:NATION Pool

Summary

This proposal is to withdraw ANT tokens from the vesting contract and provide liquidity in the Uniswap ANT:NATION pool. This proposal aims to increase the liquidity of NATION & ANT tokens, and providing additional benefits for both communities.

Background

As a DAO, it is important for Nation3 to maintain a healthy liquidity pool for its token, NATION, and also ensure the availability of other tokens which are relevant to its ecosystem. Apart from this, the DAO could also generate income from being a Liquidity Provider, instead of having Aragon’s tokens sitting idle in a contract. It’s also important to mention that creating an LP between Aragon and Nation3 helps align our incentives as communities by providing liquidity, since this facilitates conversion between ANT and NATION.

Goals

The goals of this proposal are:

  • To increase liquidity for NATION and ANT
  • Receive fees from LP

Proposed Solution

We propose withdrawing 20,000 ANT tokens (the amount that would be available at the time this proposal would be approved) from the vesting contract and LPing them in the Uniswap ANT:NATION pool, this would require matching that amount in NATION tokens, which at current valuation, would sit around ~ NATION.

Financials

  • The current value of the 20,000 ANT tokens is approximately $51,000.
  • This means that at current value of ~$780, we would need ~66 NATION, if we decide to use all the ANT tokens.

Risks

However, there are some risks to consider:

  • Impermanent loss: LP providers may experience impermanent loss if the value of ANT and NATION tokens diverges significantly.
  • Smart Contract risks: Even though Uniswap is probably the most reliable DEX, there might be some risks involved with smart contracts which could affect our position.

Alignment with North Star Metric

This proposal is aligned with our North Star Metric, which is, to increase the Total Value Secured within Nation3’s legal system, since it increases the liquidity of our own token, making it more accessible for others and also allowing us to accur trading fees in the meantime which could go towards furthering our cause.

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@cattin Does the ANT:NATION pool smart contract already exist?

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It doesn’t yet, so this proposal would also create the pool

1 Like
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@cattin Do you want to update the number of $NATION tokens before we put your proposal up for voting in Snapshot? At today’s valuation of the two tokens I believe the number of $NATION needed would be 20,000 x $3 / $430 = ~140?

1 Like
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I think I don’t have permission to edit this post for some reason, but I’ll update it on the JSON submitted anyways.

So now it would be:

20,000 ANT at ~$3 = $60,000

Current value of NATION = ~$420, so this means we would need around 145 $NATION

1 Like