Summary
Proposal to swap $1M of FOX tokens for $1M of RUNE with the THORChain Treasury, then deposit $2M of FOX & RUNE to kickstart the FOX:RUNE Pool on THORChain.
Abstract
THORChain and ShapeShift DAO have long been good friends. ShapeShift provides a free web and mobile interface to THORChain, and THORChain powers ShapeShift’s cross-chain swapping. Our values are closely aligned, and we’ve been exploring ways to further strengthen our blossoming relationship.
A member of the THORChain community reached out to propose a $1M FOX/RUNE swap in which…
Motivation/Benefits
In addition to strengthening the relationship between the ShapeShift DAO and THORChain communities and aligning incentives, the following benefits will be gained:
Specification
Because the DAO’s Gnosis Safe cannot hold native RUNE (only ETH and ERC20 tokens), and LPing on THORChain requires native RUNE, a THORChain multisig address must be created to receive the RUNE and deposit into the liquidity pool on behalf of the DAO. Hopefully in the near future a solution for this is built (ie. Gnosis Safe + SafeSnap on Cosmos) and the multisig can be replaced by the DAO.
Drawbacks
For now at least, the DAO must rely on a multisig in order to swap and LP RUNE. Additional possible risks include the price of RUNE decreasing or the network being exploited and/or halted.
Vote Yay: Execute $1M FOX:RUNE token swap and deposit $2M of FOX & RUNE liquidity to THORChain Nay: Do not execute FOX:RUNE token swap