Use treasury UNI to add liquidity

Summary

UNI is 40% of uniswap’s volume. Let’s seed a UNI/SUSHI pool with the our treasury.

Motivation: we need to get volume back up ASAP, we are incentivizing tokens who are no longer en vogue.

  • Supply UNI and SUSHI to the pool
  • Don’t supply UNI/SUSHI to the pool

0 voters

1 Like

A portion of UNI could surely be used to jumpstart liquidity. But not all of the tokens.
We should be mindful of impermanent loss for something as sensitive as treasury ops.

2 Likes

Not sure if UNI-SUSHI would generate volume you are thinking, and there is no way to farm it either. UNI-ETH is the pool that was added to the farm. Wouldn’t it be more advantages to add liquidity there?

I personally don’t think that using DEV funds to provide liquidity is the way to do it, but that’s just my thought.

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May be a dumb question, but if treasury LP’s UNI/SUSHI, and someone wants to trade UNI/ETH, doesn’t the smart contract calculate UNI/SUSHI then SUSHI/ETH to derive a UNI/ETH price?

Yeah the contract calculates out the most efficient route to get from UNI to ETH which in this case would probably be UNI => SUSHI => ETH. It would be more tx fees than just going through one pool.

TBH, it’s hard for me to see this pool getting real volume. I think some of your recent proposals could be a much higher bang-for-the-buck way to drive volume: SWRV, CREAM, wNXM, FTX Bear/Bull tokens etc

I think FTX BULL/BEAR would be a game changer. Maybe we should lend the UNI to someone who can LP vs ETH, we need the liquidity and UNI is a money maker rn.

Yeah I think that’d be better - UNI-ETH has more volume potential than UNI-SUSHI

easiest way to implement is to sell some sushi for eth and use the eth and uni, agree?

Or just sell half of the UNI for ETH?

I personally am hoping that most of the uni if not all goes to compensating the team/contributors. I believe this to be a more worthwhile use of the uni treasury.