Motivation
In April 2021, Gnosis and Balancer launched a partnership integration, the Balancer-Gnosis-Protocol (BGP). This proposal looks forward to strengthening the partnership and aligning the DAOs financially.
How?
-Financial incentives alignment: It will promote the Balancer-Gnosis-Protocol outcome in the best interest of both Gnosis and Balancer
- Treasury diversification
- Improved token distribution within long term players
- Voting power for DAO proposals
Specification
Start a pilot program of 4000 ETH-equivalent GNO (BAL) distributed across 8 months. After the program, make a lookback, evaluate the results and define next steps.
Implementation
Use the open price of Coingecko for swaps.
GNO: https://www.coingecko.com/en/coins/gnosis/historical_data/eth
BAL: Balancer Price: BAL Live Price Chart & News | CoinGecko
Option 1: GNO/BAL/ETH/DAI pool
Every Monday Gnosis (Balancer) adds 115 ETH-equivalent GNO (BAL) to the GNO/BAL/ETH/DAI pool on Balancer V2 using the last 7 days of open-price historical data average on Coingecko.
This would have the upside of concentrating liquidity in this existing pool and the downside of creating sell pressure for BAL and GNO against ETH and DAI.
Option 2: New GNO/BAL pool
Create a high fee GNO/BAL pool on Balancer V2.
Every Monday Gnosis (Balancer) adds 115 ETH-equivalent GNO (BAL) to the GNO/BALpool on Balancer V2 using the last 7 days of open-price historical data average on Coingecko.
This would have the downside of fragmenting liquidity (a new pool would be created) and the upside of not creating sell pressure for BAL and GNO against ETH and DAI.
Option 3: OTC deal
Every first Monday of the month Gnosis (Balancer) sends 500 ETH-equivalent GNO (BAL) to Balancer (Gnosis) treasury wallet. We use the last 30 days of open-price historical data average on Coingecko.
This would have the upside of not creating sell pressure (like Option 1) and being a simpler swap but the downside of not contributing to liquidity of the two tokens on Balancer like options 1 and 2.