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Liquidity subsidy for KSM/dUSD Liquidity Pool on Kusama Asset Hub
Full proposal here.
Proposal Overview
Proponent: KSM Collective on krievo
Objective: Use treasury funds to seed an initial liquidity pool for KSM and dUSD on AssetHub.
Related: Retroactive Brale integration fee proposal
Rationale: The pool will be used to kickstart dUSD adoption while simultaneously strengthening Kusama’s DeFi ecosystem and generating fees for KSM Collective.
Request: $300,000 + 10% volatilty buffer, excess will be returned.
Total USD: $330,000 Total KSM: 9706 (EMA7 $34)
Match commitment: Brale has committed an initial $300,000 in dUSD to match the requested KSM allocation
Beneficiary: KSM Society organisation on krievo, sovereign account on Kusama relay chain.
Address: Ftuq9bHvQb5NiU5JA7q79fxYn9FVBeRjNBHL3RH5raN9qck
Members: 10 members from across the ecosystem with more to add.
Representation: Virto, W3F, ChaosDAO, decent, Helikon, Lucky Friday. Governance: 1 member 1 vote, 30% minimum support
LP fees: Retained by KSM Collective (KSM) and Brale (dUSD).
First usage: Exchange of Brale’s $125k fee from KSM to dUSD with the beneficiary being the Decent Partners collective which is governed by initial membership of organisations - decent, Brale, Virto and KSM collective.
Contact: KSM society public matrix
Comments (3)
Proposal Passed
Summary
0%
Aye
0%
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Aye (42)0.0 DOT
Support0.0 DOT
Nay (17)0.0 DOT
Hi,
Can you please detail the risk associated by creating the pool for the Treasury ?
It's a commitment for The Treasury, so as for any financial investment, please detail the risks so that everyone is aware of it.
— Depeg risk
— IL
— ...
Thx in advance.
@CryptoSurfer
Depeg risk
Brale is a regulated money issuer in the US (unlike Tether) and they offer fully backed stablecoins with independent attestations.
There is never 'no risk' but in this instance the risk of a depeg rests with the stability of the banks where Brale hold their reserves.
Circle/USDC depegged when Silicon Valley bank had a run for example.
Funds risk
The KSM is being sent to the 'KSM Collective' on Virto/Krievo as the treasury can't add KSM directly to a pool on asset hub (though that would be nice).
There are currently 10 members of the collective drawn from across the eco inc ChaosDAO, Virto, Decent, Lucky Friday, PermanenceDAO and W3F so there's a spread of risk there.
I like this idea