PROPOSAL OUTLINE
Relocate Mozaic's entire POL from Camelot v3 Pool on Arbitrum to Aerodrome on Base
SPECIFICATIONS
Mozaic will establish a MOZ-ETH v2 permissionless pool on Aerodrome
To support this transition, we will set up the OFT MOZ token on Stargate for bridging, currently under discussion with the Stargate team
Swapping fees will be reduced from 1.5% to 1% to make transactions more affordable for the community. These fees will be redirected back into Aerodrome as incentives
MOZ tokens will be utilized during the initial 1-2 weeks to attract liquidity
We estimate that $20k worth of MOZ incentives will be required for the first week, followed by $0-10k for the second week, after which the pool is expected to be self-sustaining by recycling the incentives earned from the POL
The Mozaic team will manage and calculate the required incentives for each weekly epoch using the 3/6 multisig treasury. This treasury is reviewed by Hypernative and equipped with alerts and other safety features. The team will also implement any recommended security updates as necessary.
JUSTIFICATION
Setting up a pool on Aerodrome offers significant benefits for MOZ holders:
Market Comparison
- Aerodrome has a TVL of $615M compared to $104M on Camelot
- Aerodrome's monthly trading volume is $3.328B, significantly higher than Camelot's $577M
- Aerodrome boasts 168.97k monthly users
Attract New Holders
- Access to Base supporters, Aerodrome users, and Coinbase customers expands our potential market
- Setting up a pool on Aerodrome will attract new holders by increasing visibility and access to MOZ
Increased Liquidity
- Current liquidity is low; incentivizing with AERO emissions will provide consistent buy pressure for MOZ and enhance liquidity
- Liquidity providers will receive AERO emissions, making liquidity provision more attractive
- Mozaic can efficiently allocate resources by adjusting weekly incentives based on the generated fees, ensuring optimal use of funds. This cost-effective strategy involves paying minimal amounts to secure votes, maximizing the overall efficiency of the system
Improve Price Action
- Lowering fees for buys and sells will encourage more trading volume for the MOZ-ETH pair
- Each $1.0 spent on incentives is estimated to bring in $1.50 in AERO at current prices, positively impacting MOZ's price action
- Improved trading experience for both buyers and sellers
In summary, establishing a pool on Aerodrome will significantly enhance MOZ liquidity, attract new users, and optimize trading efficiency while offering substantial rewards to liquidity providers
OVERALL COST
If MIP - 10 is approved, The DAO Treasury will no longer directly accumulate MOZ and ETH from the pool. However, the Treasury will begin to accumulate AERO from the AERO votes which will give us flexibility on using them as incentives for our pool, buybacks of MOZ, or swapping for stablecoins
Beyond this, the cost of the protocol is nil
TIMEFRAME
Discussion/Temperature check - 48 hours (complete)
Call Out - 48 hours (complete)
Snapshot Voting - 72 hours (ongoing)
STEPS TO IMPLEMENT
Upon approval, the core contributors will:
1 - Set up the OFT MOZ token on Base, Stargate and Aerodrome
2 - Update all socials and platforms to display the correct liquidity and MOZ token
3 - Move the entire POL position from the Camelot v3 MOZ-ETH pool to the Aerodrome MOZ-ETH v2 pool
4 - Maintain regular management of the pool for each epoch, ensuring the most efficient and cost-effective incentivization
CONSIDERATIONS
Quorum threshold (3,000,000 xMOZ)
Snapshot voting requires at least 65% of the vote weighting for a proposal to be considered 'APPROVED'
The MozaicDAO also recognizes the need to solve for anti-sybil methods due to the nature of the Quadratic Voting system. Deviation back to simple choice voting or additional discussions to solve for anti-sybil methods are to be had
