[PROPOSAL] Add liquidity to DEXes using remaining tokens from LBP and raised USDC

For visibility, there is a 24hr Snapshot poll for a short-term solution to the liquidity problem as the community proposal process commences.

Please cast votes here → https://snapshot.page/#/gov.radicle.eth/proposal/QmbpshrWcy2TJxd8eLfny9bkLYsg7M7HiTFMJoj1nHHsWW

Also, I created a formal discussion around Next Steps for Radicle Liquidity so we can start moving this through the official governance process. A reminder that all proposals need to start as formal Discussions on the forum first!

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Having enough liquidity on DEXes allows new people to join this community if they wish to. It also allows people to leave this project if it doesn’t turn out to be what they were hoping for.

Not all of the treasury funds have to be used for the liquidity pool, but I believe it would be worthwhile to add enough to allow people the freedom to come or to go. It’s in our best interest to make this project as open to everyone as we possibly can.

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As it stands, RAD currently has a few uses:

  1. The funding of development of the radicle project (and associated ecosystem)
  2. The funding of open source software in general
  3. The purchase of radicle.eth subdomains (via the radicle ens registrar)

All of the above require deep liquidity for RAD trading pairs. Do we really expect recipients of grants from the radicle treasury to lose significant percentages of their grants to slippage ($100k does not seem like an unreasonable size for a grant…)? Do we expect the purchase of even a few hundred domain names to result in a double digit percent increase in the Uniswap price? Both seem unacceptable to me.

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Are grants going to be paid in RAD? You’d think they’d be paid in USDC, no? (Unless the grantee wants RAD).

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Voted +. Very Nice idea, suppose that more liquidity brings more holders from other pools.
And Fees from liquidity could be used by core team they deserve the best and should work alot to make Radicle better.

That assumes that they don’t lose in the pool, which is also possible.

Exactly. While everyone talked about providing liquidity to the pool, very few talk about the following two aspects:

  1. Impermanent loss on a 50/50 pair
  2. Strategic hedging to lower RAD exposure

The two points are counterarguments, so there is an interesting dynamic here:

  1. Assuming to provide liquidity for RAD/USDC a significant price increase of RAD denominated in USDC would lead to Impermanent loss in the short term. The pools RAD share would decrease due to demand and its USDC share would increase. While the overall USDC value of the pool doesn’t decrease, there is an opportunity cost here.
  2. Strategically, the treasury is overexposed to RAD at the moment. There could be an effort to select the pairs for liquidity providing and hedging the treasuries assets. Instead of putting all available token from the LBP into RAD/USDC, we could put them into:
  • 30% WBTC/RAD
  • 30% WETH/RAD
  • 40% USDC/RAD

just as an arbitrary example. In that example the hedge would expose us to Bitcoin, Ethereum and USDC. I think this could build some resilience with regards to the risk of the RAD price dropping.

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As a case in point, I added to the uniswap pool and I’m down 18%. I have a few more RAD, but I have fewer ETH.

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Hopefully impermanent/unrealized :upside_down_face:

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Ya. :slight_smile: I’m not too concerned about that, I just want libre p2p git.

I thought adding to the pool may help with the liquidity complainers, but I’m not sure if that’s who we even want as token holders. It will be a very different community if it is all held by Linux lovers vs. a bunch of token traders.

Another downside of being in the pool is I can’t proxy my RAD votes to a delegate.

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The Uniswap pool now has just under $1 mil. That’s a 212% increase in the last 24 hours.

https://info.uniswap.org/pair/0xf2f98cbd5d84640a2c5cfda5c996cd830067bc95

How much liquidity is ideal liquidity for the project? Before we just rush off to dump it all in a DEX it seems we should answer these basic questions. It is millions in tokens, after all.

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The vast majority of treasury funds are held in RAD. If grants are to be paid in USDC, then they must still be first converted from RAD to USDC.

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It looks like another pool has been added. I am not familiar hoo with this one:

It is listed in Coinmarketcap as doing over $100k in volume (more than is listed for Balancer/1inch):

Also now trading on CoinEx as a RAD/USDT (Tether) pool, which I have heard of:

Ok, so the balancer pool is opened. As far as I can tell, it is using this, please correct me if I’m wrong:

0x750dd34fb165be682fae445793ab9ab9729cdaa3

It contained this at the start:

3,750,000 RAD / $35,000,000.00 USDC

I checked the address earlier today on https://zapper.fi and it said the balances were:

1,900,316.48 RAD / $27,433,029.42 USDC Total value: $27,433,029.42

I check it now and it reads:

1,905,316.48 RAD / 27,361,397.69 USDC Total value: $27,361,397.69

Have we lost $71,631.73 USD? Thanks for any clarification.

it is easy for freshman to use radicle, if we add liquidity to dex

the most important thing for radicle is let more people know this project, and this need spend much money

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there are no any profit for usdc which is raised from lbp, so using quickly

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Here is the tx before the LBP with the initial amounts.

I’m seeing $3,500,000.00 USDC. Where do you get $35,000,000.00 USDC from?

I am opposing to this proposal and will support fully for distributing for LBP contributors discussed here. The reason is that it is too early to put RAD on additional DEXs. If adding it to other DEXs now, there are more people looking for quick money and it doesn’t help the community or the ecosystem at all. This project is DevFI. Instead it should distribute to LBP contributors and lock the distribution. I believe that it will lead many contributors involve more and become long term supporters.

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Nay on this proposal.

  1. Official team should not do this just yet. People can always choose to put their tokens on Uniswap as they wish, but official team should wait till the economic model completes and RAD starts to circulate and support the ecosystem. Until then, Rad should not be speculated.