balotelli45 See! everything still points back to acquiring AURA as the go-to strategy here. Acquiring AURA gives the treasury the required flexibility to achieve Wartull's bullet points for the DAO since that's the goal. This will also benefit the treasury long term and short term. Why pay for Votes when you can own the votes and get paid for them? and even use the votes for your good? IMHO, exposing yourself to 23% of Balancer governance to control fee incentives to POL and also vote Incentives to the treasury is a good game.
Punkgod
- Jan 14, 2023
- Joined Jan 5, 2023
- Edited
LeTube I think you are being bias as your argument is a bit one-sided and most of your maths is not factual just assumptions with very limited data set. The goal of this proposal was not to decide if the DAO should pay vote incentives to LPs but otherwise, get incentivize both on fees on LP position and voting incentives from third parties, and then ends up with far more governance power in the balancer ecosystem. Here are some of the scenarios we see playing out amongst other things:
Acquire AURA, Lock for vlAURA and get paid voting incentives (instead of the DAO paying out voting incentives too much to incentivize LP because they don't have much governance influence/exposure with the protocol that has better exposure to the most veBAL )
Acquiring AURA, Olympus can direct more liquidity to it pools because its common sense to vote for your own pools, so other LP will want to tag along because of Olympus exposure to greater Governance power.
As stated by Wartull, this is strategic move to expose Olympus to better governance play in the Balancer ecosystem and optimize liquidity, and by standards, Aura is the best tool to use both on a short-term and long-term timeframe.
Besides, the value of any asset in the space is decided by the free market and time not some napkin maths. Risk analysis entails a lot of things, and a full/accurate data set is one of them.
I really think this is the right step to take considering the cost of $AURA at the moment and the potential benefits this strategic move will bring as regards governance in the balancer ecosystem. Driving third party liquidity to Olympus with the current market condition is a thoughtful move, more so strengthening and boosting POL is even better for the DAO's treasury and I see Aura's protocol design doing just that. I think the best way to see what the possible outcome of this strategic move will be is going through this Dune dashboard (https://dune.com/aura_finance/aura). This is brilliant and I am in support of this proposal.