PROPOSAL OUTLINE
Partner with Concentric as the protocol’s exclusive active liquidity management (ALM) platform.
Migrate a portion of the DAO owned liquidity to the Concentric protocol and respective MOZ - ETH Vault.
Engage in ongoing CONE < > MOZ ‘Treasury Swaps’ to signal a long standing relationship between the protocols.
SPECIFICATIONS
The MozaicDAO will partner with Concentric to actively manage a portion of the DAO owned liquidity (approx. $175K at the time of writing) on their platform and provide users with a seamless interface to allocate their MOZ or ETH (or both) to provide liquidity and ultimately earn yield.
Concentric will also conduct a current and historic analysis of the MOZ - ETH trading activity to optimize and manage the liquidity for the MozaicDAO in their vaults: https://docs.concentric.fi/overview/vaults
The DAO owned POL (as well as other LPers) will be eligible for:
- CONE rewards
- xCONE rewards
It should be noted, the MozaicDAO has no intention of selling any CONE or xCONE, it will rather seek to participate in their governance and staking of xCONE.
See: (https://docs.concentric.fi/tokenomics/cone-token)
Any ‘future’ incentives can be claimed through the Concentric UI. i.e ARB incentives.
FEES
40% Automatically Compounded
40% for xCone Stakers
20% Performance Fee:
- w/ 50% redirected to the Concentric Treasury
- w/ 50% used to buyback MOZ
Treasury Swap
In addition, $1,000 worth of MOZ is to be exchanged for CONE at an already agreed upon market value:
- 193 CONE @ $5.18
- 26,600 MOZ @ $0.03759
Both parties have the option to swap additional treasury assets each week to the sum of $1,000 at a pre-agreed upon market price.
JUSTIFICATION
An ALM platform is an integral part of liquidity management and for users to seamlessly provide liquidity to the MOZ-ETH V3 AMM pool. Rather than having to consistently manage their position, a user can harness Concentric’s intuitive liquidity strategies, earn REAL yield (https://docs.concentric.fi/overview/real-yield) and additional protocol incentives.
This proposal will also signal a long standing relationship with Concentric, Camelot and the Arbitrum ecosystem.
Through this proposal, the DAO will also accrue diversified yield and assets for the Treasury through:
- Earning CONE and xCONE incentives by providing liquidity through Concentric Vaults
- Providing liquidity to the CONE pool
- Participating in xCONE staking
- Ongoing Treasury Swaps
OVERALL COST
NIL.
TIMEFRAME
Proposed Discussion - 72 hours (closed)
Call Out - 24 hours (closed)
Snapshot Voting - 72 hours (live)
STEPS TO IMPLEMENT
Upon approval, the core contributors will:
- Initiate the first Treasury swap of MOZ < > Cone based on the above parameters
- Work with Concentric to establish an ALM Vault
- Announce start details for when the vault goes live
- Migrate the specified DAO owned POL in batches
CONSIDERATIONS
Quorum threshold (2,000,000 xMOZ) - maintained.
Snapshot voting requires at least 65% of the vote weighting for a proposal to be considered 'APPROVED'
Concentric contracts and audit: https://docs.concentric.fi/security/contracts
KEY TERMS / ADDITIONAL INFORMATION
Why Concentric:
Liquidity provision and management in DeFi can often be a cumbersome process. Traditional automated market makers (AMMs) usually require constant monitoring and adjustments by the LPs to ensure optimal returns. Concentric alleviates these concerns with its automated system, promising reduced impermanent loss and higher yields.
Furthermore, the integration with Camelot v3 and Arbitrum ensures high transaction speeds and significantly reduced gas fees. Concentric is not just another liquidity manager; it is a refined, advanced tool tailored for the next phase of DeFi.
Source: https://docs.concentric.fi/
