BIP 105 - BADGER Treasury Controlled Liquidity (TCL)

TL;DR
The proposal is to authorize the Treasury Council to move up to 100% of the TCL in the Uniswap V3 BADGER/wBTC LP to BADGER/eBTC

Background

The BADGER/wBTC LP was created in BIP 74 and so a BIP is required to move BADGER TCL from wBTC to eBTC

eBTC is the fully collateralized stETH backed synthetic BTC token of BADGER DAO. eBTC has proven its stability since it was released.

It now makes sense for Badger DAO to transfer BADGER/wBTC TCL to a new BADGER/eBTC pool

The existing BADGER/wBTC TCL in Uniswap is shown here

The Discord Discussion on this topic is here

Should The Treasury Council be Permitted to Migrate BADGER TCL to eBTC
  • Yes, Permit the Treasury to Transition the Uniswap LPs to eBTC
  • No, BADGER TCL should stay with wBTC
0 voters
2 Likes

The good? Better Integration:Moving the liquidity from BADGER/wBTC to BADGER/eBTC helps align with Badger DAO’s ecosystem by using our own synthetic eBTC. This could boost eBTC’s usage and strengthen the overall ecosystem.

But… Liquidity Concerns: Shifting all liquidity to eBTC might pose risks since eBTC isn’t as widely adopted as wBTC. This could lead to lower liquidity and higher slippage, making trades less efficient.

also but… Risk Concentration:Relying only on eBTC increases the risk. If eBTC encounters any issues, it could severely affect the value and stability of the BADGER pool, unlike wBTC, which is a more established and reliable asset.

This BIP isn’t directing the Treasury to move 100% of TCL overnight

It is permitting the Treasury to move in that direction - since today the Treasury cannot diversify any wBTC to eBTC without a BIP

The Treasury is well aware of the risks you mention and can be expected to debate them thoroughly before making any changes

1 Like

My opinion - I’d prefer to see something more incremental than a one time BIP that empowers the Treasury Council to move 100% wBTC into eBTC.

Treasury Council gets the 100% authorization now there is no reason for it to stay engaged with community for BIPs authorization further BTC allocation discussions.

2 Likes

in light of the feedback provided here and on discord, i would like to suggest to make this a multiple choice snapshot:

  • yes; empower the treasury council to move up to 100% wbtc tcl to ebtc
  • yes; empower the treasury council to move up to 50% wbtc tcl to ebtc
  • no; do not empower the treasury council to move wbtc tcl to ebtc
3 Likes

That’s a reasonable compromise

2 Likes