We are generally supportive of such experiments and appreciate having this opportunity presented to the DAO. However, in its current state, we cannot support this proposal based on the requested funding amount of $12M and the implied valuation of $60M.
As mentioned by @eek637
“With that in mind, I suggest that delegates consider this proposal on the merits of the transaction itself, rather than the labels that might be applied to Ekubo Inc.”
Taking into account the above:
- There is little to no information about the Ekubo token, its intended use outside of a governance token, plans for the remaining 80% of the token supply, etc.
- The Uniswap DAO has not established a framework for both treasury diversification and investment decisions. Which is unfortunate given this opportunity.
- The above is further amplified by the size of the investment which ranks Ekubo above the likes of Paraswap, IDEX, and QuickSwap by FDV. Which are protocols that exist on highly active chains and have done significant volume numbers. (We don’t agree that directly comparing Ekubo to these protocols is the correct approach, but it helps with determining a rough heuristic of market pricing).
- Starknet’s TVL sits at $152.8M ~ 2.5x the implied FDV of Ekubo.
Ekubo looks like an amazing DEX which has already proven to capture the majority of the DEX trading volume market share on Starknet. However, this decision requires the DAO to take a bet on both Ekubo and Starknet which at the implied FDV and lack of information is rather optimistic and forward-looking.