# Proposal to create a DDX-ETH strategy on Carbon using DDX Bancor 3 Surplus

**URL:** <https://gov.bancor.network/t/proposal-to-create-a-ddx-eth-strategy-on-carbon-using-ddx-bancor-3-surplus/4318>\
**Category:** Community Chatroom (DISCUSSION)\
**Created:** [June 11, 2023, 7:51pm UTC](https://gov.bancor.network/t/proposal-to-create-a-ddx-eth-strategy-on-carbon-using-ddx-bancor-3-surplus/4318 "2023-06-11T19:51:36Z")\
**Posts on this page:** 1\
**Showing post:** 12

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**Author:** ![mbr](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.bancor.network/mbr/32/3021_2.png) [@mbr](https://gov.bancor.network/u/mbr)\
**Post date:** [June 18, 2023, 11:54am UTC](https://gov.bancor.network/t/proposal-to-create-a-ddx-eth-strategy-on-carbon-using-ddx-bancor-3-surplus/4318/12 "2023-06-18T11:54:54Z")

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Excerpt from the [thread](https://gov.bancor.network/t/consolidating-recent-proposals-by-alphavalion/4330) I posted just now to the community chat:

> [@Consolidating recent proposals by @alphavalion](https://gov.bancor.network/t/consolidating-recent-proposals-by-alphavalion/4330/1):
>
> #### **Moving surplus tokens to Carbon and creating a protocol-owned strategy**
> 
> The proposals by alphavalion generalise the purpose of this protocol-owned liquidity (POL) by introducing an intermediate step; the surplus tokens are first moved to Carbon and destined for inclusion in a “protocol-owned strategy”, which through fee generation also directly translates to BNT recapture and destruction. As an aside, the increased liquidity levels in Carbon ought to help maintain persistent volumes and assist with the adoption of the new product.
> 
> However, [several issues have been raised](https://gov.bancor.network/t/proposal-to-start-sunsetting-bancor-v3/4279/27) that represent an insurmountable obstacle to implementing the protocol-owned strategies as initially envisioned by alphavalion. While a [rebuttal](https://gov.bancor.network/t/proposal-to-start-sunsetting-bancor-v3/4279/33) was provided, it suggests a fundamental misunderstanding by the original author regarding the feasibility of what is being proposed. The only satisfactory process must be one where there are a set of functions that can be called by literally anyone, which facilitate the exchange of tokens into the desired pair, and the creation of a strategy with unambiguous settings. This is the decentralization requirement which, for example, would prohibit the use of a generic token tracker and entrusting an individual with correctly interpreting it, and maintaining the strategy on chain in accordance with the DAO’s guidelines, as suggested in the proposal. To create a system of smart contracts to achieve what is proposed, in terms of regularly updating the strategy conditions in accordance with a TWAP, is similarly untenable.
> 
> ## **Consolidation:**
> 
> As ongoing strategy management is untenable, this proposal suggests that a generic stablecoin strategy be adopted which can exist in perpetuity without changing its parameters.

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_[View the full topic](https://gov.bancor.network/t/proposal-to-create-a-ddx-eth-strategy-on-carbon-using-ddx-bancor-3-surplus/4318)._