AIP-85 Discretionary spending for new Liquidity Pools
Status: AIP-85 is up for a snapshot vote until March 13, 2023 at 19:30 UTC
If passed, this proposal will allocate $50k of treasury owned ALCX to the Biz-Gov subDAO. The team will use these funds to run several pilot programs aimed at reducing alAsset liquidity costs for the protocol. Liquidity is provided by alUSD/stablecoin and alETH/ETH pools that use yield to attract user deposits. The yield for these pools is generated by swap fees, which are driven by trading volume. When trading volumes are low or inconsistent, the protocol pays Liquidity Providers incentives, using ALCX, to supplement the swap fees. Due to the nature of alAssets, trading volumes are consistently low, making incentives the main source of yield and are a large cost to the protocol. The goal of AIP-85 is to see if enough volume can be generated through the pilot programs to lower the overall incentivization costs. To date, the protocol has only run one test through the Arrakis Univ3 alETH/alUSD pool. Read the full proposal for details on the pilot programs, the Arrakis pool test, and specifics into how the alAsset pools operate.
Since the last update…
AIP-78 passed a snapshot vote approving $500k of treasury owned ALCX to be deployed and insured in Blueberry.
AIP-82 Part 1 unanimously passed a snapshot vote approving the migration of POL and incentives to Balancer.
AIP-82 Part 2 passed a snapshot vote allowing treasury owned TOKE to be traded for AURA.
AIP-83 passed a snapshot vote greenlighting changes to the Alpha Vaults framework and allowing the core team to launch Alpha Vaults with predetermined conditions at their discretion.
AIP-84 passed a snapshot vote pre-authorizing a DAO grant to support development costs of Alchemix Leveraged Vaults. This grant will be $10k paid in stables upon completion of technical deliverables outlined in the proposal.