TDP 23.1: Incentivized Liquidity Provision on Balancer Finance Source


Simple Summary & Abstract

The BAL tokens held in the old Aragon entity have recently been moved into our new Gnosis Safe Multisig, and can now be used to bolster our treasury via incentivized liquidity provision on Balancer Finance.

The mStableDAO is proposing to use these BAL tokens now held in the Asset Management subDAO to provide liqudiity on the Balancer Finance platform, and regularly harvest and compound the extracted BAL tokens to maximize capital efficiency and profits for the DAO.


This proposal aims to:

  1. Provide maximum capital efficiency for our idle tokens in the treasury
  2. Increase TVL of the treasury over time & diversify token allocations held
  3. Generate a future revenue stream with the accrued rewards by participating in fee sharing once this gets activated from the protocol of the governance token in question
  4. Have a potential say on proposals & the decision-making processes in the suggested protocol by holding their native governance token custodied in the mStableDAO treasury


This proposal suggests that the 13,210 BAL currently held in the Asset Management subDAO be put into a Balancer Finance liquidity position in order to begin accruing BAL from the 80/20 BAL/WETH pool.

In the process of commencing with this opportunity on Balancer Finance, the 13,210 BAL would be provided via single-sided liquidity, and consequently split up into the allocation described above.

Liquidity rewards will be claimed and compounded back into the suggested pool position on a regular basis at the discretion of the Asset Management subDAO, which will consider and weight operational costs against accumulated rewards in the contract to make an informed and economically sound decision on the correct timing of these operations.

Successful passing of this proposal will allow the Asset Management subDAO to continue with this opportunity until the incentivization on Balancer Finance ends, or a different proposal be made to change the method or utilization of the tokens in question.

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