[discussion] Building POL for Collab.Land DAO

đź“ś Proposals + Orientations đź’± $COLLAB token
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Liquidity

COLLAB token needs liquidity support. Over 67M COLLAB was distributed as unlocked tokens to the Top100 communities to distribute to their members. Sales from that distribution and the initial community claim resulted in current price.

Governance is live for the token and we would like to provide a more solid and sustainable financial foundation for the DAO by building protocol-owned liquidity for the treasury. This is preferable to providing short-term incentives to mercenary liquidity providers because it will not result in a sudden flood of tokens onto the market as incentives end and LPs seek to sell their token incentives and underlying LP assets. Revenue and sustainability are :key: in the :bear:.

After consultation with legal advice, the Colorado Co-op DAO can provide liquidity to support token price, but the Collab.Land team cannot. This places us all in a bit of a :cucumber: since the DAO treasury does not have assets other than COLLAB to pair with and form an LP.

Paired Asset Sources

Services

Collab.Land team is rolling out revenue-generating products, generally tied to:

  1. Providing services to communities (stables)
    a. CollabCare
    b. CollabCare+
    c. Collab.Land VIP
  2. User transactions via the gmPASS (ETH)

You can see the product map and (vague) timeline on whimsical.

Product map password

password collabland

Team plans to allocate percentage of fees directly into DAO treasury, which will provide stablecoins and ETH the DAO can use to LP and support healthy token price.

OTC

In the meantime, we are seeking a group willing to do an OTC trade of COLLAB for ETH/stables, with stipulations of time-locking traded tokens or similar arrangement to align incentives long-term and prevent a large dump later.

KISS

Treasury management advice we’ve received is that simple is better as complexity adds additional attack surface to treasury management, similar to IT. KISS.

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Hey @iSpeakNerd,
I’m thinking about how we can reduce the amount of token we need to sell for the OTC trade. One idea is to offer benefits to our users. For example, we could auction off a limited number of NFT passes that would include some benefits like:

  • Free access to our miniapp forever
  • Two years of CollabCare+
  • No fees for five years

We could set up three tiers of passes, each with a different price point and set of benefits. For example, the highest tier could floor priced at 25 ETH and include all of the benefits listed above. The two lower tiers could be priced lower and include a subset of these benefits.

This is just a suggestion, but I think it’s something we should discuss further.

Best,

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to the above, I would add another guaranteed refund, let’s say after a certain time, a year, two! And to encourage the purchase of this NFT, add an airdrop for the holder!

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While I like offering product discounts, team is extremely leery of allowing any kind of speculation on this because of how shitty people get about their speculative bets

I paid 40ETH for this and now its worth 2 ETH :rage::anger::rage::anger::anger::anger:

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hey, @iSpeakNerd have you thought of liquidity bootstrapping, through Balancer or using Bondprotocol? another option is to provide single-sided liquidity.

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we are talking to arrakis atm, I’m very leery of Balancer personally, there have been multiple hacks and its interface is complicated for retail

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Arrakis is going to maintain sell pressure on COLLAB.

You were given this information by the Velodrome Team, and there is data from Kwenta about Velodrome’s efficiency over Arrakis that was shared in your DAO meeting.

The information is available on Medium, if you search “Arrakis Kwenta Velodrome” on google.

I don’t think you’ll find a better solution than Velodrome on Optimism.

DeFi Llama confirms this, with their TVL as well.