During the TLAs on Polygon and Ethereum we have distributed about 1.88MM POP and raised about 5.82MM USDC (Ethereum TLA: 2.75MM USDC raised, 873.15k POP sold / 1MM POP remaining - Polygon TLA: 3.07MM USDC raised, 1.01MM POP sold / 880k POP remaining).
Now we need to decide on how we split the raised money and remaining POP onto several DEXs and networks. This should be done via proposals on https://snapshot.org/#/popcorn-snapshot.eth .
My proposal: “Split it Even 80% - one DEX per Network & Seed Money for Butter & Seed Money for Next Products”
- We should split 80% of the remaining POP and raised USDC from the TLAs (about 1.88MM POP remaining, about 5.82MM USDC raised) evenly on one (the best) DEX per supported network across all networks we want to support initially (Ethereum, Polygon, Arbitrum?). The split should be calculated in such a way that the initial price of POP is 3,74$ which was the combined weighted average price of POP at the end both TLAs.
- The surplus of POP which is available due to the price difference at the end of the TLAs (Polygon end price was much higher) and the reduced amount of USDC allocated for the LPs (only 80% of the raised USDC is put into the LPs) should be kept in the treasury.
- 2,5% of the USDC raised (about 145k) should be put aside as seed money for Butter to have a verifiable “social proof” that Butter is used and is “save to use” (we put our own money in).
- The remaining 17,5% of USDC (about 1MM) should be kept in the treasury to be able to create additional projects that might require seed money too.
The criteria for finding the “best” DEX should be accessibility, popularity and fees in that order. For example Quickswap on Polygon is the most advertise DEX and also the one with the most volumen, however since POP is not yet “officially listed” on polyscan one needs to add the token by hand which is quite hard on Quickswap. 1Inch on the other hand makes it much more easy to add custom tokens. That is why 1Inch can be considered more accessible and might be a better choice.
- Price will be the same on every network at the beginning (no initial arb opportunities cross chain)
- 20% or 1,15MM USDC for additional products should give us some leeway to add additional products or expand existing products to other chains
- People wo paid a premium on Polygon might feel cheated since the average starting price won’t be 4,2$ but 3,7$. However, starting with a spread on different chains will introduce an initial arb opportunity.
- Using just 80% of the money leads to less market depth which again leads to more volatility. Also not everyone can “exit”.
- no need to do arb on the same network
- more liquidity per pool → price will be more stable since selling/buying won’t move the price that much
- users might not be able to use their “home” DEX for swapping POP
- Yes - exactly as described
- Yes - with some adjustments