Proposal Overview
This Liquidity Initiative will help supercharge BOLD’s presence on three key layer 2 ecosystems. The funds received will be used in an optimized fashion to optimize both instant and long-term returns for the BOLD holders and the protocol. The Collective commits to matching the 0.5:1 BOLD obtained and dedicating a share of its veVELO, veAERO, and veRAM voting power to amplify the results obtained.
Usage of the funds received
- 50% of the BOLD received will be posted as vote incentives, helping to increase emissions received by liquidity providers of BOLD-related pools.
- 50% of the BOLD received will be matched with stablecoins from the DeFi Collective reserves and used to supply key Optimism, Base, and Arbitrum pools, such as Velodrome_sAMM_BOLD/USDC.
Impact for BOLD
For every $1 BOLD received on this initiative:
- $1 will be permanently added to BOLD’s liquidity on key L2.
- Moreover, ~$1 of rewards will be delivered as incentives to the BOLD liquidity provider: $0.5*veAERO/veLO bribe efficiency (=~1.9-2.1))= $1
Perma LP?
50% of the BOLD received will be “permaLP” by the Collective, that is:
- Matched 1:1 with desirable pairing assets, such as LUSD or USDC
- Supplied to a relevant pool such as BOLD/USDC or BOLD/LUSD on a strategic DEX on a layer 2, including Velodrome, Aerodrome, or Ramses.
- All the funds mobilized through this endeavor (BOLD from liquidity initiative + 1:1 match) will remain mobilized in LP. Allocations between DEX and chains might evolve, but the capital will always remain mobilized to secure a liquidity baseline for BOLD.
The LP tokens will remain in the custody of the Collective, on a specific address dedicated for such endeavors: permalp.deficollective.eth
Threshold & Target
There is no minimum amount of BOLD required for this proposal to be delivered (apart from the protocol-imposed minimum for collection set at 500 BOLD/week). The proposed distribution (50/50) applies up to 10,000 BOLD received per week. BOLD received above that threshold will be fully allocated to vote incentives.
| BOLD Received (/week) | From 500 to 10 000 | > 10 000 |
| Allocation | 50% perma LP, 50% vote incentives | 5000 perma LP, remaining in vote incentives |
Impact Measurement, Tracking and Key Metrics
| Metric | Reason |
| BOLD supply on Optimism, Base & Arbitrum | This liquidity initiative will help grow BOLD supply on Optimism, Base and Arbitrum. |
| TVL in BOLD-related pool on Optimism, Base & Arbitrum | This initiative is directly geared to raise and sustain BOLD’s L2 liquidity |
| PermaLP TVL | ½ of the BOLD received are 1:1 matched to supply liquidity. |
| Vote Incentives Posted | ½ of the BOLD received are used to supply vote incentives. |
| Action | ENS | Resolved Address |
| Receiving BOLD from the Liquidity Initiative | grants.deficollective.eth | 0xDc6f869d2D34E4aee3E89A51f2Af6D54F0F7f690 |
| Posting BOLD voting incentives | grants.deficollective.eth | 0xDc6f869d2D34E4aee3E89A51f2Af6D54F0F7f690 |
| PermaLP | permalp.deficollective.eth | 0x9c413014c0b8b853b93953537d9aF112aD821345 |
| veVELO/veAERO/veRAM voting | deficollective.eth | 0x6665e62ef6f6db29d5f8191fbac472222c2cc80f |
Reporting
Usage of the BOLD received in this liquidity initiative will be exhaustively documented in the “Initiative” section of the DeFi Collective’s monthly reports.
The BOLD will be received on grants,deficollective.eth. They will be bridged to Optimism/Base/Arbitrum, and vote incentives will be posted directly from this wallet.
The permaLP activity will be executed on permalp.deficollective.eth with the pairing stablecoin funded from deficollective.eth. A Dune Analytics dashboard will be established to ease the tracking of both the vote incentives posted & the perma LP accumulated.
The voting veVELO/veAERO/veRAM voting activity is handled on deficollective.eth.
The Impact Page on the DeFi Collective website enables anyone to track such endeavors easily. It currently provides contextualized information about the Collective’s voting activity and will include data about the BOLD liquidity initiative as it starts.
Practical Information
- Recipient: 0xDc6f869d2D34E4aee3E89A51f2Af6D54F0F7f690 / grants.deficollective.eth
- Nature: 2/4 Gnosis Safe
About The DeFi Collective
The DeFi Collective is a Swiss non-profit association that supports the most resilient DeFi protocols. It manages its own assets in an opinionated manner to help genuine DeFi protocols grow.
It has been active for 12 months and manages ~$2.35M of assets on Ethereum, Optimism, and Base, including sizable liquidity-driving positions (veAERO & veVELO) used to attract liquidity to tokens of stage 1 and 2 DeFi protocols, including Liquity, PoolTogether, and Velodrome. During the first year, various stablecoins projects were assisted and supported with their liquidity and cross-chain strategy, including: LUSD, DYAD, HAI, and GRAI.
It currently employs 3 board members and 5 contributors.
