The DeFi Collective - BOLD Liquidity Initiative: Maximize BOLD footprint on L2s

Initiatives
1

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

tdc-bold-liquidity-initiative
tdc-bold-liquidity-initiative1491×772 114 KB

  1. 50% of the BOLD received will be posted as vote incentives, helping to increase emissions received by liquidity providers of BOLD-related pools.
  2. 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:

  1. Matched 1:1 with desirable pairing assets, such as LUSD or USDC
  2. 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.
  3. 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.

More information about the overall strategy the DeFi Collective envisions to support BOLD was shared on our blog.

5 Likes
2

As of this morning, the BOLD rollout on Optimism, Base, and Arbitrum is on!

There is already about $400k TVL in Velodrome BOLD pools:

image
image1472×321 34.7 KB

And over 650K on Aerodome:

image
image1519×394 44.8 KB

As well as 50K on Ramses:

image
image1185×191 17 KB

The veVELO/veAERO/veRAM votes allocated by the Collectives to BOLD-related pools can be monitored here.

Thanks to the BOLD received by the PIL (1459 this week), vote incentives will be deployed starting at the next epoch, allowing an increase in the emissions allocated to the pools.

1 Like
3

February 07 2025 update

The DeFi Collective has received two rounds of PIL so far, amounting to 5357 BOLD; thanks for your support!

The first deployment has just been realized, with a 50%/50% permaLP/bribe split:

  1. 2,678 BOLD matched with 3,233 USDC and supplied to the Aerodrome sAMM_BOLD/USDC
  2. 2678,5 posted as vote incentives on BOLD/USDC (1878.5 BOLD) & BOLD/LUSD (800 BOLD) pools
1 Like
4

February 12 Update

In light of the current situation with the BOLD Stability Pool deposit

Several actions were taken:

  • Perma LP liquidity has been withdrawn
  • LP seeding on OP/Base/Arbitrum withdrawn
  • The deployment of further BOLD received from the PIL (2319.1291 BOLD received this morning) is halted until the situation becomes clearer

Voting+bribing for this week was already done before the announcement, meaning ample incentivization will still flow to BOLD-related pools this week (+the Collective is not here to dilute).

We hope that we will have clarity by next week, which will enable us to adjust the voting strategy.

1 Like
5

BOLD relaunch

With BOLD relaunching today, the Collective will resume its activity exactly as before.

Now for some accounting:

Total BOLD received from PIL on BOLD first deployment:
9581.94

Total BOLD used as incentives on the first deployment: 2678.5 BOLD

Available to support the relaunch in the first week:
6903,44

=> 3451,72 BOLD (50%) will be deployed as vote incentives on Velo and Aerodrome, and 3451,72 (50%) will be matched and supplied as permaLP as soon as possible.

3 Likes
6

GM, TokenBrice reporting on behalf of the DeFi Collective, after successfully deploying the 8844 BOLD received from PIL this epoch (reception tx).

First epoch report:

Key points:

  • Seeding: Collective seeded aeroBOLD/USDC $100k, aeroBOLD/LUSD $50k, aeroBOLD/POOL (per permaLP agreement with PoolDAO) and veloBOLD/USDC + veloBOLD/LUSD $20k each
  • Voting: ~3.7M veVELO & ~400k veAERO are allocated to BOLD-related pools
  • Bribing: 50% of the BOLD from PIL are dedicated to bribing, to be deployed on aeroBOLD/USDC (75%, next epoch =~$3.2k) and aeroBOLD/LUSD (25%, next epoch =~$1.2k)
  • PermaLP: ~ to be deployed in veloBOLD/LUSD
  • Infra/integration: Beefy has already requested support for Aero and Velo pools. Once that is delivered, the next step is likely a PT_aero_BOLD/USDC vault (PoolTogether).

TRACKING

The main resource to track TDC’s activities is our impact page, we you will find all the links shared below and more

POOLS STATUS

Off to a good start, with already ~$950K TVL in BOLD-related pools

image
image1389×356 38.3 KB

image
image1508×422 43.5 KB

PERMA LP STATUS

Total: ~$16.25k veloBOLD/LUSD captured as permaLP
3451 BOLD from first v2 deployment + 4424 from first PIL epoch (50% of total received) = 7875 BOLD matched with 8473 LUSD from the Collective’s reserves.

OUTLOOK

Hindsight is positive for next week, as the PIL received a ~20% increase compared to the reserve accumulated on the first deployment.

3 Likes
7

The Collective received 9144.3961 BOLD through PIL this week:

=> 4572.19805 posted as bribes
3559.85 BOLD ON BOLD/USDC & 1000 BOLD on BOLD/LUSD tx

=> 4572,19805 matched with 4,768.54 LUSD and perma LPd tx

8

8231.55 BOLD were received this week for the Collective PIL.

=> 4160 bridged to Optimism, and paired with XXXX LUSD as permaLP - tx:

=> 4160 bridged to Base, and deployed as bribes on BOLD/USDC and BOLD/LUSD pools -tx:

Overall, the pools are nicely growing, especially on Base, where there is now ~$1.7M TVL in BOLD-related pools, with a highly positive outlook for BOLD/USDC currently sitting at ~37% APR:

image
image1532×419 43 KB

The permaLP velo_BOLD/LUSD is also growing, now sitting at $34k:

image
image1271×105 11.4 KB

Enjoy and see you next week!

9

Hi, I have voted for this initiative, however I haven’t seen any bribe yet accumulated. Do I need to wait more for it, or what is going on?

10

The Collective does not bribe.
Not all initiatives bribe, only those who chose so do. Right now only Smardex will start bribing with this epoch.

We are working on having this displayed on the frontned too.

11

One big question. Why don’t we use CL1 LPs for BOLD-USDC at Aerodrome?

It’s better for Peg

1 Like
12

Hello Jonathan, that is a fair question.

So first, it’s actually not better for peg at all, as it induces much steeper volatility as soon as you get out of that dense core zone, which can happen a few times a year. CL is good for maximizing the volume that can be processed with minimized slippage per amount of TVL. But it also has costs: complexity for LPs, and a relative unfairness (constant rebalancers vs passive LPs). We wrote on CL vs x*y=k and stableswap and why we think x*y=k and stableswap are not outdated on the DeFi Collective’s blog.

But that’s not the main reason we went with good old stableswap. CL for stables is good when optimizing for volume, but that is not our core mandate. Our primary mandate is to act as a BOLD sink, aka maximize the TVL in BOLD-related pools; in that sense, stableswap is superior.

Put it another way: the demand for BOLD on L2 is not that huge yet, to the point that 1M TVL in a stableswap pool on Base is already largely sufficient for the volume it processes - currently we have about 2-3M volume per epoch on a 3M TVL pool on Aerodrome for instance.

Finally, stableswap was also favored because it doesn’t break composability, allowing for neat integrations on top of the LP, such as a PoolTogether vault or using the LP as collateral. We’re working on making such integrations happen, but they take time.

I hope that answers your concerns.

13

Hello Bolders, here I am again reporting on this week’s deployment

7,156.082 BOLD were received this week

=> 3578 BOLD bridged to OP
Matched with 3,900.44 LUSD and supplied as permaLP - OP Mainnet Transaction Hash: 0xa8f6864097... | OP Mainnet Etherscan

=> 3578 BOLD bridged to Base and posted as bribes: 2578.041 on BOLD/USDC and 1000 on BOLD/LUSD pools

Overall, the pools are growing nicely, and there is now about $3.5M TVL in BOLD-related pools on Aerodrome/Base

image
image1459×517 52.6 KB

And on Optimism, there is over $600k TVL in BOLD-related pools.

image
image1459×301 33.7 KB

All together, that’s about 2,31M BOLD deployed in Collective-sponsored pools: 6,53% of all the BOLD circulating.

1 Like