Updates on LC and Request for Feedback

Liquidity Council
1

Hey All,

We want to update the community about the most recent activities within the Liquidity Council and also request for feedback concerning our future deployments.

On May 15, as mandated by proposal #32, which required the Liquidity Council to top-up liquidity recipients in up to $300,000 worth of ARCH, the Liquidity Council deployed 635.168K sARCH and 712.863K xARCH on the sARCH/xARCH pool on Astrovault. The amount of ARCH was calculated based on the 30-days TWAP of ARCH.

The next top-up in the pipeline is from the Eris Protocol, which received an initial amount of 250,000ARCH and 250,000 ampARCH to form the ampARCH/ARCH on Astrovault. However, it’s been notable that the usage in such pool is very low, reaching a 30d volume of only $374 USD.

Our thinking as LC is that we should withdraw the liquidity from such pool and redeploy it somewhere else where it can be better utilized. As such, we want to seek feedback from the community over the different options considered in this case:

  1. Redeploy funds in the ARCH/xARCH pool on Astrovault, which has already received 300k in liquidity from this group.
  2. Redeploy funds in the bnUSD/sARCH pool on Astrovault. This pool received an initial amount of $100K and has had a decent level of activity reaching over $100K in volume for the past 30d.
  3. Keep the funds in the ampARCH/ARCH pool and top-up to the $300K cap.

What option does everyone think we should follow here? Any feedback on this will be greatly appreciated! If we don’t receive any feedback by May 31st, we’ll proceed with option 2 above.

3 Likes
3

My apologies as I’ve just seen this request–was the liquidity ever redeployed? If not I do think it would be a good idea to utilize the liquidity in a pool that is getting more volume and usage.

4

Hi @CryptoChem0000. Thanks for reaching out. The funds have not been redeployed as we were concerned about swapping ARCH for bnUSD.

We’d love to hear your feedback on this… Where do you think we should redeploy the funds to optimize usage?

5

I think the smart thing would be for the Liquidity Council to sway that ARCH for USDC.noble, and deposit it in the Treasury and wait for something better to deploy that capital for.