[Temperature Check] Liquidity Council Formation

[Temperature Check] Liquidity Council Formation

Introduction

This Temperature Check proposes the formation of a Liquidity Council within the Blockswap DAO. The primary responsibility of the Liquidity Council will be to facilitate the liquidity of both dETH and BSN tokens throughout DeFi, stimulate demand for dETH and BSN tokens via DeFi integrations, and uphold the best interests of the DAO in token distribution. The Council will manage the BSN tokens allocated to the liquidity initiatives and be solely responsible for them.

Motivation

For dETH and BSN to flourish in the DeFi ecosystem, the Blockswap DAO needs effective DeFi integration strategies. The creation of a Liquidity Council can streamline these strategies, ensuring proper token distribution and finding DEXs, money markets, LP pools, etc. With proper distribution, this can increase the visibility of Blockswap protocols and encourage further staking by creating a demand for dETH.

There are a few members of the Blockswap DAO who are already actively voting on incentives and finding places for Blockswap and its tokens to trade. These members should be rewarded and empowered to continue their activities.

Joining the Council

Existing Grant Council Members: Current Grant Council members can opt-in for the Liquidity Council by signaling their intent on the Blockswap DAO governance forum at gov.blockswap.xyz. They will be automatically admitted into the Liquidity Council.

Other Community Members: Other members interested in joining the Liquidity Council will need to apply. The applications will be accepted through the DAO governance forum and should include the following:

  • Who you are and how to find you in the community.
  • What makes you an excellent addition to the council.
  • Wallet address to add to the multisig.
  • Your involvement with the Blockswap community so far.
  • Anything else you think the community might find valuable.

Application Period

Once there are three members on the council it will be self-governed. With less than three members, the council will not receive any tokens and will be considered pending.

The DAO will have open applications for the Liquidity Council to be reviewed one week after the Temperature Check passes a Snapshot vote. Any applications will be reviewed by either the community at large or the Liquidity Council depending if there are three or more members in the Council at the time of review. Applications can always be considered after the one-week period has concluded.

Starting and Concluding Council Operations

  • The Council will start operating as soon as there are at least 3 members. This is when the 6-month period begins.
  • At the end of the 6-month period 500,000 BSN may be dispersed from the allotted funds to each member’s wallet.
  • At the end of the 6 months, the Council will either return any remaining tokens to the DAO or, through a vote, decide if they would like to continue the disbursement of BSN tokens and communicate this decision with the DAO. Keep in mind some members could leave while others stay.

Implementation

The Liquidity Council will control the remainder of the 50,000,000 BSN allocated for dETH liquidity via a SAFE. This allotment will be opened up for use in any liquidity surrounding Stakehouse. This could include:

  • BSN
  • dETH
  • sETH (if applicable)

The Liquidity Council will be required to participate in SAFE multi-sig transactions for the disbursement of tokens.

Responsibilities

  • Facilitate the liquidity of dETH and BSN tokens throughout DeFi and identify opportunities for BSN and dETH incentives.
  • Act with the best interests of the DAO in mind, particularly during token distribution.
  • Engage in active dialogues with other Council members and the wider DAO community to make informed decisions.
  • Participate in SAFE multi-sig transactions for token disbursement and oversee the distribution of BSN tokens.
  • Maintain self-regulation, handle new member applications, and act if any member is not aligning with the Council’s principles by removing them from the Council.
  • Seek out and bring in new liquidity opportunities for dETH and BSN.

Conclusion

This Temperature Check aims to assess the Blockswap DAO community’s interest in forming a Liquidity Council. The proposed Council will be responsible for maintaining liquidity, distributing tokens, and ensuring the effective operation of liquidity initiatives. Their ultimate goal will be to drive demand and ensure the successful integration of dETH and BSN tokens in the DeFi ecosystem. By leveraging community expertise and dedication, the Liquidity Council will play a pivotal role in the success of the DAO and its protocols.

2 Likes

I’m on board and willing to opt in!

1 Like

Of course! Liquidity is very important. Especially for dETH. I’m in.

1 Like

Gm, the rollup is keen to support this initiative to generate liquidity integrations with projects in our network. From years of educational content partnerships within the industry our network has grown to include north of 400 projects across the dApp space. Of these project relationships, several are in LSDFi, DEXs, lending and borrowing studios, and DeFi. These existing relationships are basis for proposing integrations and making introductions to the Blockswap team for collaboration.

We have already made an impact on liquidity integrations by connecting Blockswap core team members with other LSDFi projects including: Raft to introduce dETH and kETH as collateral options, Sommelier to add dETH and kETH to their Real ETH Yield automated LSD vault strategy, and Chainstack to connect Blockswap liquidity networks with fast and reliable infrastructure adapters.

As members of the liquidity council, we may continue making introductions to industry partners with more structure. The intention being to generate more integrations for Blockswap liquidity networks and embed Blockswap LSDs further into the ecosystem.

The rollup has an active Community Education initiative in flight. We will continue to amplify Blockswap to our network of projects and builders through educational content in addition to targeted outreach for broadening liquidity integrations.

3 Likes
  1. I’m androolloyd, you can find me on discord as @androolloyd
  2. I’m an active defi solidity developer, I’m well connected throughout the space. And have been building production applications in the space since 2016.
  3. androolloyd.eth
  4. I have provided my insights around rewards for incentivizing stakehouse validators, bsn and deth liquidity, theory crafted a version of kETH with the blockswap team in Denver, have built a third party fren delegation Ui for my LSDN, and am currently running 3 validators.
  5. I like to get shit done
3 Likes