At which price should surplus tokens be sold?
- Current Spot Price
- 30-day TWAP with a 5% Premium
- 30-day TWAP with a 5% Discount
Expected on Snapshot in the future
This proposal is split from the discussion that has happened in this thread
and Bancorians should read that post to have an understanding about this proposal
- DDX token surplus in Bancor v3 to be moved to a new address
- From the new address create a sell limit disposable ETH-DDX carbon strategy
- Calculate 30 day twap at time of strategy creation and add a 5% premium to arrive at the sell price in ETH
Now that the Bancor DAO voted to disable 10 pools last week, this proposal seeks to take one of the tokens, DDX, to have a Carbon strategy created. I am creating a single proposal to gauge community sentiment in snapshot and should the proposal pass have the Carbon team go through the motions required to perform such an operation. More proposals to be created for the remaining tokens if this passes
In as much detail as I can provide, this proposal seeks the following set of steps to be performed if it passes.
- Remove the surplus DDX tokens from the V3 mastervault using the “Bancor Network: Deployer” and move it to a new address. Refer to this TX as a reference for a similar operation.
- Calculate the last 30 day time weighted average price for the DDX token. A calculation has been provided as an example using coingecko data for DDX-USD over the last 30 days. I do not have access to any advance analytics API that might provide more granular data, for example open price, high price, low price, and close price for tokens.
This calculation was performed as of today but it should be repeated at time of strategy creation
|2023-05-13 00:00:00 UTC||0.308955473|
|2023-05-14 00:00:00 UTC||0.32480991|
|2023-05-15 00:00:00 UTC||0.340428586|
|2023-05-16 00:00:00 UTC||0.324526506|
|2023-05-17 00:00:00 UTC||0.3339988|
|2023-05-18 00:00:00 UTC||0.343180685|
|2023-05-19 00:00:00 UTC||0.354782833|
|2023-05-20 00:00:00 UTC||0.339690816|
|2023-05-21 00:00:00 UTC||0.332309239|
|2023-05-22 00:00:00 UTC||0.338155855|
|2023-05-23 00:00:00 UTC||0.320310994|
|2023-05-24 00:00:00 UTC||0.323264752|
|2023-05-25 00:00:00 UTC||0.312902665|
|2023-05-26 00:00:00 UTC||0.316497722|
|2023-05-27 00:00:00 UTC||0.315923412|
|2023-05-28 00:00:00 UTC||0.311561851|
|2023-05-29 00:00:00 UTC||0.317642333|
|2023-05-30 00:00:00 UTC||0.303791576|
|2023-05-31 00:00:00 UTC||0.324294888|
|2023-06-01 00:00:00 UTC||0.32504662|
|2023-06-02 00:00:00 UTC||0.329422114|
|2023-06-03 00:00:00 UTC||0.333431445|
|2023-06-04 00:00:00 UTC||0.352358638|
|2023-06-05 00:00:00 UTC||0.348162462|
|2023-06-06 00:00:00 UTC||0.327579039|
|2023-06-07 00:00:00 UTC||0.338734012|
|2023-06-08 00:00:00 UTC||0.332718685|
|2023-06-09 00:00:00 UTC||0.325730425|
|2023-06-10 00:00:00 UTC||0.341590235|
|2023-06-11 00:00:00 UTC||0.279460843|
The average price has been
over the last 30 days. We now add a 5% premium to this amount which results in a total of
using current ETH prices, this is equivalent to
This means that we would sell each DDX token for 0.00019519 ETH if we were to create a Carbon strategy at time of writing.
If the Carbon team has access to more granular pricing information then use the following method to find a 30 day TWAP price for DDX then add a 5% premium to the result.
Average of each day’s price = (Open + High + Low + Close)/4
Average of 30 days = (Average of first day’s price + Average of second day’s price +…+ Average of thirtieth day’s price)/30
- From the new address in step 1, create a Carbon ETH-TKN disposable sell limit strategy
Sell Budget: The entire DDX surplus that exist in Bancor v3 and which was moved to a new address in step 1.
Sell Price: The price in ETH calculated in the previous steps which is 0.00019519 ETH
I am using the UI as an example but the Carbon team can use any methods or tools at their disposable to create such a strategy.
If this proposals passes, the Bancor community has managed to increased the TVL of Carbon by ~$1700 as of time of writing with the assumption there is 6116 DDX tokens in surplus which were there when I started this process. At some point in the future this strategy might be filled and 1.19378204 ETH will be acquired when this happens
The Bancor DAO can choose how to use such ETH amount when this occurs. I have provided an idea in my original thread for what can be done with ETH but we must take one step at a time. For now, I will only focus on disabling old pools and the creation of disposable strategies in Carbon that sells surplus tokens for ETH.
Within 30 days of this proposal passing, create a Carbon disposable sell limit DDX-ETH strategy to sell any DDX bancor 3 surplus for ETH using the steps described in this proposal.