DRAFT PROPOSAL LINK: https://forum.lobis.finance/d/89-find-a-fair-path-forward/10
AUTHOR(S): Lobis Founders & DCFGod
Overview: Give each LOBI a claim to its underlying assets, with special consideration for DAOs that conducted swaps with Lobis. This proposal build on the original proposal by DCFGod.
A smart contract will be written where a user can deposit LOBI. Each token deposited is sent to the burn address, and in exchange, the underlying assets are distributed to the holder (FXS, cvxCRV, TOKE, etc.)
This contract will be launched once all treasury assets are liquid:
- The FPI airdrop completes (estimated 1-2 weeks)
- FXS is unlocked (in 3 days)
This is when 100% of treasury assets will be liquid. Until this proposal is executed no treasury assets should be locked or used.
Before the claim all DAO/Treasury/LP held LOBI should be burnt and the OHM in the LP should be added to the backing. If any DAO-owned LOBI is currently staked, it should be burnt with no claim either.
For DAOs like Redacted that may want access to the underlying assets: they can make contracts to acquire LOBI from holders in exchange for their native governance token. When this claim contract launches they can claim the underlying assets that way with the rest of the community/holders.
For community members that want to continue with their own dao: they can launch a NEW dao that accepts LOBI in an initial bonding event. They can then use the claims contract to continue with their own token and community.
For the team that wants to continue with the project: simply do not use the claims contract. Everyone that stays wants to continue with whatever governance model the community sees fit.
All of the above options are optional, they are just examples on how this is a fair way forward for everyone. The vote would not mean any of the above actors have to do anything.
The above satisfies all parties except for those that LOBI conducted dao to dao swaps with. These projects may be upset that their tokens are in the hands of users which may sell them. To accommodate these DAOs will have the first right to claim exclusively in their native token by burning their LOBI. This process will be manual and doesn’t need a smart contract. For example, if 1 LOBI has backing of $50 USD, a partner DAO can burn 1 LOBI and take $50 USD of the native token in the LOBI treasury. This way parter DAOs can take back their native token and mitigate any sell pressure from LOBI holders. If any DAO wants this option they must inform the team publically on this forum post.
First Refusal For DAOs
To mitigate against any further fallout DAOs have the option (not the obligation) to swap their LOBI at the backing price in exchange for only their “DAO Token” within the Lobis treasury i.e. If LOBI backing is at $10 (basket of tokens), “DAO” can trade 1 LOBI for $10 of the “DAO Token” in the Lobis treasury until all of the “DAO Token” has been redeemed. The intent to conduct such an OTC trade by protocols should be signaled on this forum post.
- If a “DAO” has fewer LOBI than the $ equivalent of their “DAO Tokens” sitting in the Lobis Treasury then they have the opportunity to make an offer to redeem “DAO Tokens” in the Lobis treasury e.g. “DAO” deploy a contract that accepts LOBI in exchange for stables (or other). There will be a 5 day period where they can raise LOBI through such a contract. Holders can exchange their LOBI for the tokens offered by the “DAO”. After the 5 day period, the “DAO” will exchange their newly obtained LOBI for the $ equivalent of “DAO Token” from the Lobis Treasury. This 5 day period should begin immediately following the acceptance (if accepted) of this proposal on Lobis Snapshot (with current voting mechanisms in place).
- If the “DAO” chooses to forgo any of the “DAO Token” remaining in the Lobis treasury it will be considered as part of the backing (normal redemption rules apply). Users that have large LOBI holdings can publicly request to OTC their LOBI for these forgone “DAO Tokens”.
- If the “DAO” has more LOBI after redeeming all their “DAO Token” (USD) they may use it to redeem a basket of tokens from the Lobis Treasury assets after all protocols have executed or forgone their right of first refusal and subsequently users with large holdings have had a chance to publicly request OTC for forgone “DAO Tokens”.
- Holders have the choice to redeem from the treasury directly from the Lobis Treasury following the 5 day period for DAOs to conduct their offers. N.b. Although the backing (USD) remains unchanged there may be a situation where all the OHM/gOHM, Angle etc. have been claimed. In this case, users claiming directly will redeem the remaining assets in the Lobis Treasury at backing value e.g. Lobi backing at $10 would redeem $5 in FXS, $4 in CRV, $1 in TOKE etc.
Notes and Clarifications
- The POL contains OHM owned by Lobis with their value is reflected in Treasury Holdings, since these constitute backing they can only be redeemed in exchange for LOBI.
- The timeframe for this redemption process is no sooner than before DAO FXS unlocks and the distribution of the FPI airdrop.
- Users that want to continue can hold their LOBI with remaining treasury assets after redemption backing these LOBI. These assets will be utilized as per the DAO governance structure (whatever the community decides that be).
- All forms of emissions are paused until further notice (rebasing, bonds or otherwise).
- Only LOBI actually in circulation can be considered for redemption e.g. Protocol Owned LOBI/sLOBI will not be able to redeem any Treasury Assets.
- Rewards earnt in non-treasury assets e.g. 3crv, cvxcrv, etc will be converted into ETH and considered part of the backing of each LOBI. The FPI airdrop will also be included in the redemption
- If this proposal is approved via snapshot POL will be removed from Sushiswap for the redemption period to stabilize the real backing per LOBI and avoid negative arbitrage against holders. At this point, Olympus can exchange their LOBI for OHM. After this period if liquidity is required for LOBI it may be paired with another asset than OHM e.g. LOBI/FRAX.
Timeline: This proposal is up for discussion for 2 days for comments and additions before being moved to snapshot