Proposal to Allocate New Batcher Fees to Boost Protocol Owned Liquidity

Temp Check Discussion
1

Introduction:

This proposal suggests redirecting ADA batcher fee revenue to purchase Cardano Native Tokens, pair those tokens with ADA, deposit them into Minswap Liquidity Pools and where possible Yield Farm the liquidity.

Problem Statement:

Currently, batcher fees accumulated are mostly unused in the DAO Treasury. Instead of continuing to accumulate ADA, it’s better to use it to grow the protocol and adoption.

One of the best ways to achieve that is to increase increase liquidity on deposit and earn addition trading fee revenue.

Proposed Solution:

  1. Redirect New Batcher Fees: Direct incoming batcher fees to purchase tokens, pair them with ada and provide liquidity .
  2. Management: if this proposal passes, responsibility for purchasing decisions should temporarily be vested in the emissions committee until such time as a new working geoup is formed exclusively for this purpose. The committee should work with limited discretion under the guideline that new liquidity should be targeted towards pools where competitors do greater volume than Minswap, and secondarily in stablecoins .

Benefits:

  • Increased TVL
  • Increased POL
  • Increased fees
  • Attract trading volume in pools where Minswap trails competitors

Proposed Compensation:

Bert should get 1,000 MIN just for being an inspirational member of the community with his own discord role.

7 Likes
2

Supporting this! Great idea—you’ve already listed the benefits. It would also be a long-overdue collaboration between Minswap and other Cardano projects.

I’d add the possibility of allowing the DAO to vote on the target tokens instead of a commission. Managing those token acquisitions could become an entirely new utility for MIN governance and a recurring event.

5 Likes
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I wonder if u could partner with protocols who donate CNTs and Minswap donates ADA, rach accrpts IL, and LPs put onto a 2/2 or 4/4 multisig with 1 or 2 from each team.

I dont love going out and buying tokens and tsking that price risk with DAO funds. Would definitely be open to stablecoins. But also do agree we should target pairs with higher liqudiity on competing dexes. Overall like the idea

7 Likes
4

I honestly think this is a much healthier proposal in contrast to the other one.

Promotes GROWING liquidity on Minswap, diversifies revenue, attracts volume via aggregators by deepening liquidity.

PREVENTS LIQUIDITY FROM ESCAPING.

All in favour of this.

2 Likes
5

Giving to the comittee the decision on what tokens to put the money on is a bad idea. May be the tokens selected could be top 5 traded tokens during the last month and have a daos governance vote to apporve/disapprove the investment for the tokens selected.
On other side I don’t know if it would be a good idea to generate liquidity of these tokens against MIN. The dao has a huge amount of MIN in its treasury and by not pairing against ADA the programa would double its effectiveness. I think it is a good idea, but needs go a little bit deeper before sending to approval

2 Likes
6

I really like this proposal.
I’m not sure how the final version would look. But
I think it would be good use the purchased tokens and pair them with excessive $Min

So eventually we get deep pools of

$Min/$LQ
$Min/$Snek
$Min/$BTN

This would naturally increase volume as arbitraging will trade them off vs their $Ada pairs

which will create more fees for more tokens buybacks

for more $Min/$X token pairs

A nice flywheeel of perpetual motion

3 Likes
7

I like the idea of doing a 50/50 split between the these two competing proposals.

1 Like