Request for Proposals - ARB Distribution

Requests for Comment
4

How to use the ARB allocation to bootstrap the liquidity of UNI tokens and other one on Arbitrum with the help of Bunni ?


Why ?

There is a lack of liquidity for the $UNI token on Arbitrum. For example actually, a 5 ETH swap will have an impact of 1.220% on the price pool.

Another benefit for Uniswap would be to create a diversification of the treasury by receiving oLIT token, the call option token for LIT that lets its holder purchase LIT at a discount to the market price. Unlike regular options, oLIT does not expire. oLIT is also a transferable token that could be used as POL.

What is Bunni ?

Bunni is a liquidity engine for Uniswap V3 where projects incentivize veLIT holders to vote on their gauges and direct native oLIT emissions to their LP pair.

Although the project was launched relatively recently, the smart contracts have been audited by yAudit (www.reports.yaudit.dev/reports/08-2022-Bunni/). By leveraging Uni v3 Bunni is more efficient than Curve, for example, the FRAX/USDC pool has processed 259m$ since it was created 3 months ago (Dune /bored_genius/bunni)

How ?

Create two pools on Bunni (bunni.pro), one UNI/ETH and one ARB/ETH. Then bribe this pool with the $ARB allocation token through Quest (app.warden.vote/quest/) or Hidden Hand (hiddenhand.finance).

And part of the $ARB could be also used to enter the ARB/ETH pool and gain some oLIT to diversify the treasury of Uniswap. This could be done threw the Zap option so Uniswap doesn’t need to make a swap before entering the pool.

Also, some other pair could be incentivized with the collaboration of each project.

The plan to bootstrap this liquidity :

  • Step 1 ) Create the ARB/ETH and UNI/ETH pool on Bunni (bunni.pro/add)

  • Step 2 ) Create the gauge for these two pools (docs.bunni.pro/docs/guides/deploy-gauge/). A TRC needs to be produced and submitted. There is a template here (gov.timelessfi .com/discussion/9947-trc-gauge-proposal-template) and the Bunni team could help with this step.

  • Step 3 ) 4 days need to go by after that’s produced then anyone with 1% of veLIT can push your TRC to a snapshot vote.

  • Step 4 ) Once it passes bridge $ARB token allocation to L1

  • Step 5 ) Bribe the two pools through Quest or Hidden Hand with the $ARB token allocation based on the time/budget defined.

  • Bonus Step) Enter the ARB/ETH pool to diversify the Uniswap treasury.

Bunni Links :

Bunni Webapp: bunni.pro

Dune analytics: /bored_genius/bunni

Twitter: /timeless_fi

Github: /timeless-fi

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