Create SPOOL/ETH Liquidity Pool [SIP - 1.23]

Summary :bookmark_tabs:

Create a SPOOL/ETH Liquidity Pool on Uniswap consisting of $27.5k worth of ETH and $27.5k worth of SPOOL, using DAO profits.

Proposal :mailbox:

The Spool DAO Treasury has amassed $55k DAI in revenue via farming using our own product in the Spool Treasury Smart Vault since its deployment. In order to bring the gains to further use in a meaningful way and increase the liveliness of the SPOOL token, the creation of a Liquidity Pool with ETH and SPOOL is one of the best ways to create additional value for token holders and market participants.

Motivation :fire:

When designing Spool during the midst of a bull market the team wanted to ensure that the token price was not correlated to the (at the time) high valuation of Ether, which is the core reason why the team opted for a SPOOL/DAI liquidity pool.

Throughout the bear market, this pool functioned as intended and we will maintain this pool as is, the SPOOL/ETH pool would be additional. The advantages of doing so would be the following:

  1. This proposal ensures that the SPOOL price drifts with Ether, which is currently almost 400% away from its all-time high.
  2. This proposal creates more robust liquidity for the SPOOL Token
  3. This proposal increases the volume for the SPOOL Token due to an influx of on-chain arbitrage opportunities
  4. This proposal ensures that the chart for the SPOOL Token looks more lively due to increased participation
  5. This proposal increases the price per SPOOL due to the purchase of tokens

Vote :ballot_box:

With β€œYes” you vote to use the accrued profits of the DAO to build an ETH/SPOOL liquidity pool, and with β€œNo” you vote against creating this pool.

The vote takes place here

Timeline :clock130:


The vote closed with β€œYes”