Now that the STKR governance token is in circulation, a liquidity pool should be established to enable the easy trade of the token without large slippage.
DODO is a decentralized exchange platform powered by the Proactive Market Maker (PMM) algorithm. Launching a liquidity campaign on DODO will enable the creation of a liquidity pool without 50:50 requirements required of AMMs like Uniswap. By utilizing the DODO Crowdpooling feature, Staker will be able to distribute STKR to those who would like to be part of the governance of the DAO, while bootstrapping a substantial liquidity pool.
We propose that the Staker Community Treasury allocates 1 million STKR tokens to the Crowdpooling mechanism on DODO. The Crowdpooling feature will enable Staker to;
- Bootstrap liquidity by contributing only STKR (unlike the 50:50 ETH & STKR necessary on other AMMs, such as Uniswap).
- Sell 50% of the allocated STKR tokens for ETH inside the Crowdpooling, resulting in a bootstrapped liquidity pool where StakerDAO will hold liquidity for no fewer than 90 days.
- Ensure liquidity remains in the pool for a minimum of 90 days before the Staker Community may decide to withdraw funds from the liquidity pool (and retain the ETH within the treasury) or continue to support liquidity efforts.
- Offer STKR to people interested in long-term governance of Staker at a set price, without risk of front running or driving up the price because of low liquidity.
If StakerDAO chooses to launch such a STKR campaign on DODO exclusively, and the majority of STKR liquidity remains on DODO after 30 days, the STKR liquidity pool on DODO will qualify for the “DODO Booster” program. By being included in the DODO Booster program, LP token holders for the STKR pool will then receive ($DODO) governance tokens. If the Staker treasury receives DODO rewards, STKR governance participants will have an additional asset to use as they please.
If this proposal successfully passes Staker governance, DODO will assist StakerDAO to market and promote the project through the Chinese and Southeast Asian crypto markets by sending news flashes through a minimum of 5 major local crypto media partners, set-up an AMA with a StakerDAO member with SnapFinger (a strategic crypto media partner of DODO), assist in the creation of a Chinese WeChat group for STKR, and assist in the translation and publishing of Staker content in local media channels.
- Upon successful approval by Staker governance, 1 million STKR tokens shall be deposited into the Crowdpooling contract within 15 business days.
- Staker shall not remove liquidity from the campaign for a minimum of 90 days, and a subsequent Staker governance proposal will decide when to remove funds from the pool.
- 1 million STKR tokens are sent to the DVM, half of which are sold at $0.25. This low price ensures adequate STKR gets into the ecosystem for those who choose to support the StakerDAO mission early.
- Half of the STKR is sold for ETH, creating an ETH:STKR liquidity pool valued at around $250,000.
- For creating and managing and submitting this proposal, Stateless Money asks $250 in STKR tokens from the Community Treasury.