# Compensate Bill Broker LPs for Impermanent Loss During Fee Curve Transition
Please see [Discourse discussion](https://forum.ampleforth.org/t/proposal-to-compensate-bill-broker-lps-for-impermanent-loss-during-fee-curve-transition "Discourse discussion") for background.
# Spot v5.0
This is a proposal to upgrade the Spot contracts with the following functional improvements. See Discourse thread for details and configuration.
1. Decouple Enrichment/Debasement from Rotations
2. DR-based fees
3. Fees Directed to stAMPL holders
4. Pair Minting & Redemption of SPOT/stAMPL
5. Bill Broker Support for Negative Fees
# Withdraw and Redeem SPOT liquidity from Billbroker
See forum for full proposal text
**Implementation**
1. Transfer Bill Broker and SPOT notes from the Timelock to Kennel Club multisig
2. Redeem the notes for SPOT & USDC
3. Redeem the SPOT for the underlying tranches
4. Once all tranches have matured, the AMPL and USDC will be sent back to the Timelock address
# FORTH Allocation for Liquidity Provisioning (2025)
# Description
Proposal to authorize the transfer of 800,000 FORTH from the DAO’s treasury in the form of a loan over 12 months.
# Specification
Ampleforth Foundation will work with market making partners to:
* Provide liquid markets across major centralized exchanges.
* Proactively guide discussions and support listings of FORTH on key exchanges
* Borrowed FORTH will be used exclusively for liquidity provision purposes. No farming, lending etc.
Ampleforth Foundation is requesting approval for a 12-month loan of 800,000 FORTH from the DAO’s treasury for liquidity provision services.
**Repayment Option:**
The Foundation agrees to return the full 800,000 FORTH loan amount to the DAO’s treasury at the end of the 12-month contract period OR exercise the repayment options below. The repayment options allows the purchase of the full 800,000 FORTH loan amount on the respective option expiry date at strike prices specified below.
* 400,000 FORTH at strike price at 120% of ATM
* 200,000 FORTH at strike price of 140% of ATM
* 200,000 FORTH at strike price of 180% of ATM
This represents a weighted average strike of 140% ATM.
The ATM price will be a 5 day TWAP starting on the date of receipt of the loan tokens, and the commencement date will be the final day of the TWAP.
Should the foundation choose to exercise its repayment option, the loan balance will be returned to the Ampleforth DAO treasury in the form of BTC, ETH or USDC assuming a USDC price of $1, and using BTC or ETH CoinGecko price at 23:59:59 UTC on the expiration date of the agreement.
# Implementation
The conclusion of [the previous agreement](https://forum.ampleforth.org/t/forth-allocation-for-liquidity-provisioning/725/1) resulted in the DAO being owned 200,000 FORTH. Should this proposal succeed, the DAO would only need to send 600,000 FORTH. In either case, it would still receive the full USDC amount owed from the previous aggrement.
If approved by governance, 600,000 FORTH will be sent from the DAO’s treasury to address:
* eth:0xc3a947372191453Dd9dB02B0852d378dCCBDf271
# Reduce Flash Mint Fee to .5% and Flash Redeem Fee to 5%
Proposal to reduce Flash Mint fee from 2.5% to 0.5% and Flash Redeem fee from 10% to 5%. The goal being to increase SPOT supply efficiency and increase overall system adaptability.
# Deploy unused DAO AMPL into Rotation Vault
Allocate up to 5.5M AMPL for stAMPL position. Either by depositing into the vault or exchanging for stAMPL 1 for 1 with respect to the underlying AMPL. Deposits are subject to the following conditions:
* DAO will only deposit when the DR \< 0.95. This gives a (slight) opportunity for new entrants to come in first.
* DAO will not cause the DR to exceed 1.0 from its deposits
# Geyser Refresh for Q1 2025
The current round of geysers is ending, let's look toward the next.
# Bill Broker
We should first recognizing how well the Bill Broker is serving its LPs. It's currently showing a 75% [unincentivized APY](https://app.spot.cash/broker), followed by a 13.5% APY from geyser incentives. This organic APY is especially impressive given that it's on a stable pairing that is already greatly shielded from IL.
While we can't necessarily expect this APY to stay this high forever, since we've been able to extract this data it has stayed over 40%. Comparable projects have grown much larger with much smaller yields.
In order to have an impact on future LPs, the DAO would have to compete with an already very high organic APY. As such, I believe the SPOT/USDC pairing on the Bill Broker does not require any more incentives from the DAO, and the reward assets would be more productively used toward other uses.
# stAMPL
There have been many requests from the community for single sided staking options in the geyser. Depositors in the stAMPL vault take on the highest volatility, and as such I believe now would be the right time to launch a geyser for this platform for this critical group of users.
# Poolside
Following discussion in the forum, the DAO's poolside funds will be migrated to Bill Broker and WAMPL/WETH liquidity. ETH and USDC will be transferred from the Timelock to support.
# Treasury Spotlight
Below is a snapshot of DAO controlled assets, as of December 11th, 2024. Please note that all data below is summarized in a best effort form, from publicly available sources onchain.
| DAO Assets | Balance | Value |
| ---------- | ------------: | -------------: |
| AMPL | 18,894,929.60 | $24,941,307.07 |
| WAMPL | 7,496.17 | $203,671.04 |
| FORTH | 2,575,904.35 | $13,703,811.16 |
| SPOT | 8,013.81 | $11,299.47 |
| USDC | 5,338.79 | $5,338.79 |
| ETH | 4.19 | $16,082.52 |
| WETH | 1.75 | $6,743.94 |
| GRT | 47,500.10 | $13,436.26 |
| Total | | $38,901,690.25 |
| Liquidity Positions | Balance | Value |
| ------------------------ | -----------------: | -------------: |
| ETH/AMPL UniV2 | 0.07746149151 | $2,186,741.91 |
| SPOT/AMPL Poolside | 0.0000280312168 | $298,331.14 |
| Bill Broker (SPOT/USDC) | 433,597,593,092.88 | $574,176.77 |
| stAMPL | 144.5633359 | $1,182,060.213 |
| WETH/WAMPL UniV3 (Charm) | 45,052.93 | $2,204,081.324 |
| FORTH/WETH UniV3 (Charm) | 100,000.00 | $724,040 |
| Total | | $7,169,431.35 |
# Inflows From Managed Vaults
| Asset | Amount | Value |
| ----- | ---------------------- | ----------- |
| WETH | 1.751617211501443382 | $6,743.94 |
| WAMPL | 296.871042247507812327 | $8,065.99 |
| USDC | 3,006.82 | $3,006.82 |
| SPOT | 4,685.11722351 | $6,606.015 |
| Total | | $24,422.765 |
# Proposed Configuration
Note the proposed period of 6 months is longer than the previous 4 month rounds
| Geyser | Platform | Pair | Chain | Period | FORTH Amount |
| --------- | ---------------- | ---------- | -------- | -------: | -----------: |
| Crystal | Charm Uniswap v3 | WETH/WAMPL | Ethereum | 6 months | 37,500 FORTH |
| Riverside | Rotation Vault | stAMPL | Ethereum | 6 months | 37,500 FORTH |
| Total | | | | | 75,000 FORTH |
# Move Spot mint/redeem fees into flash mint/redeem fees
For full background, see the forum proposal thread linked below.
The proposed changes are:
| **Fee** | **Old** | **New** |
| --------------- | :----------- | ------- |
| SPOT Mint | 1% | 0% |
| SPOT Burn | 1% | 0% |
| SPOT Flash Mint | 4% | 2.5% |
| SPOT Flash Burn | 4% | 10% |
Full docs on system configuration and fees can be found in the [Spot docs](https://docs.spot.cash/spot-documentation/spot-documentation/about-spot-configurations#fees).
# Geyser Refresh for Q2 2024
# Ecosystem State
The proposal to begin rollout of Spot v2 [is live](https://forum.ampleforth.org/t/proposal-initiate-rollout-of-spot-v2) and so far showing solid support. This is a natural time to reexamine the structure of SPOT liquidity so we can ensure it's serving the needs of the market and protocol.
@Togenkyo suggested [here](https://forum.ampleforth.org/t/adjust-liquidity-range-of-the-spot-usdc-arrakis-vault) that the bands of the SPOT Arrakis vault are due to be updated. When the vault was first launched in January of 2023, the bands were set such that the AMPL price target was at the lower end. Now, the price target has approached nearly the top bound.
Demand for SPOT leading up to the rollout has exceeded these concentrated bands and, while the price has shown a remarkable ability to come down again towards the target, better liquidity provisioning could have reduced some of the unnecessary intermediary price action.
Another factor is that, provided the v2 rollout executes, we may [expect more short term volatility](https://blog.ampleforth.org/how-spot-v2-makes-arbitrage-more-efficient-4b5c13acaa95) of SPOT as the markets develop. So we should generally prefer wider bands in the near term, on top of moving them upwards.
Given the simplicity of the Arrakis v1 vault system, the best way to update bands is to migrate to a new vault. If so, this is also an opportunity to leverage [new v2 architecture](https://resources.arrakis.fi/arrakis-v2-protocol/introduction) from Arrakis that can be more dynamic in its liquidity management. This could simultaneously increase LP efficiency (leading to more fees) and decrease the need for future migrations.
The DAO could consider future programs on satellite networks, such as Base. But it's likely prudent to first ensure a healthy SPOT v2 ecosystem on Ethereum L1, before complicating the market and arbitrage structure with additional platforms. However, since these are open markets, anyone who would like to participate on the Base platform in the meantime can absolutely move forward as they desire. There is already $267k of SPOT liquidity on Aerodrome, and $557k of WAMPL liquidity on Base Uniswap v3.
# DAO Owned Liquidity
The FORTH PALM Vault ([dashboard](https://dashboard.arrakis.finance/?network=ethereum\&vault=0xe2cbdbc298d884a2ded6b554702f514ed3364264)) has been [highly successful](https://forum.ampleforth.org/t/proposal-use-arrakis-palm-for-deepening-dao-owned-liquidity/641/12) in delivering on the DAO's goals of bootstrapping liquidity. The performance of the vault is +21% vs hodling. This performance is something we can double down on, by allocating more FORTH tokens to what is already in the vault.
The DAO currently owns ~$1M in [FORTH/ETH liquidity](https://dashboard.arrakis.finance/?network=ethereum\&vault=0xe2cbdbc298d884a2ded6b554702f514ed3364264), and ~$3.5M in [AMPL/ETH liquidity](https://etherscan.io/token/0xc5be99a02c6857f9eac67bbce58df5572498f40c?a=0x223592a191ecfc7fdc38a9256c3bd96e771539a9). Additionally, the $500k USDC position can be used for future SPOT liquidity, if the DAO mints enough SPOT tokens to match.
# Proposed Configuration
| Geyser | Platform | Pair | Chain | FORTH Amount |
| ----------------- | ---------- | --------- | -------- | -----------: |
| Beehive v7 | Uniswap v2 | ETH/AMPL | Ethereum | 25,000 FORTH |
| Fly v2 (Superfly) | Uniswap v3 | SPOT/USDC | Ethereum | 35,000 FORTH |
| Total | | | | 60,000 FORTH |
Proposed allocation to PALM liquidity: 700K FORTH, which would bring the vault back to the 90:10 FORTH:ETH ratio it started with.
# FORTH Allocation for Liquidity Provisioning
# Description
The Ampleforth Foundation would like to put forward a FORTH liquidity provisioning proposal to the Forth DAO community. Specifically, this would authorize the transfer of 800,000 FORTH from the DAO’s treasury in the form of a loan over 12 months.
# Specification
Ampleforth Foundation will work with market making partners to:
* Provide liquid markets across major centralized exchanges.
* Proactively guide discussions and support listings of FORTH on key exchanges
* Borrowed FORTH will be used exclusively for liquidity provision purposes. No farming, lending etc.
Ampleforth Foundation is requesting approval for a 12-month loan of 800,000 FORTH from the DAO’s treasury for liquidity provision services.
**Repayment Option:**
The Foundation agrees to return the full 800,000 FORTH loan amount to the DAO’s treasury at the end of the 12-month contract period OR exercise the repayment option below. The repayment option allows the purchase of the full 800,000 FORTH loan amount on the respective option expiry date at a strike price specified below.
The Strike Price: $4.24723
Maturity Date: Jan 30th, 2025
Should the foundation choose to exercise its repayment option, the loan balance will be returned to the Ampleforth DAO treasury in the form of BTC, ETH or USDC assuming a USDC price of $1, and using BTC or ETH CoinGecko price at 23:59:59 UTC on the expiration date of the agreement.
# Implementation
If approved by governance, 800,000 FORTH will be sent from the DAO’s treasury to address:
* eth:0xc3a947372191453Dd9dB02B0852d378dCCBDf271
# Capitalize the DAO with 500K USDC by purchasing FORTH at market price
[Governance Forum Discussion](https://forum.ampleforth.org/t/proposal-capitalize-the-dao-with-500k-usdc-by-purchasing-forth-at-market-price "Governance Forum Discussion")
The Forth DAO is currently in possession of several tokens but is deficient in USDC [Ampleforth Dashboard](https://www.ampleforth.org/dashboard/dao). This proposal requests to capitalize the DAO with 500K USDC by purchasing FORTH at market price.
To price the FORTH we’ll take the 7-day simple moving average price from TradingView looking back from the time of this submission ($3.331 / FORTH).
This USDC can be used by the DAO for many things including DAO-owned forever liquidity.
# Geyser Refresh for Q3 2023
[Link to Forum Discussion](https://forum.ampleforth.org/t/geyser-refresh-for-q3-2023/688)
[Link to Signal](https://signal.ampleforth.org/#/ampleforthorg.eth/proposal/0xdb30761644bdb32b6d89cb77826aa960d45fe41c4f67c047a0e3e396d183066c)
## Proposed Configuration
If passed, this will fund a 4 month program with the following breakdown:
```
Geyser Platform Pair Platform Amount
Beehive v5 Uniswap v2 ETH/AMPL Ethereum 35,000 FORTH
Fly Uniswap v3 SPOT/USDC Ethereum 15,000 FORTH
Total 50,000 FORTH
```
# Geyser Refresh for Q3 2023
[Link to Forum Discussion](https://forum.ampleforth.org/t/geyser-refresh-for-q3-2023/688/1)
[Link to Signal](https://signal.ampleforth.org/#/ampleforthorg.eth/proposal/0xdb30761644bdb32b6d89cb77826aa960d45fe41c4f67c047a0e3e396d183066c)
# Proposed Configuration
If passed, this will fund a 4 month program with the following breakdown:
```
Geyser Platform Pair Platform Amount
Beehive v5 Uniswap v2 ETH/AMPL Ethereum 35,000 FORTH
Fly Uniswap v3 SPOT/USDC Ethereum 15,000 FORTH
Total 50,000 FORTH
```
# Geyser Refresh for April 25th, 2023
For full background and discussion, please see the forum thread [here](https://forum.ampleforth.org/t/geyser-refresh-for-april-25th-2023).
## Proposed Configuration
Background:
- Original EcoFund carveout was 23.5% of network
- [Forth DAO Treasury](https://etherscan.io/address/0x223592a191ecfc7fdc38a9256c3bd96e771539a9) owns 4,273,629 AMPL, so 42.66% of original EcoFund carveout is liquid
(not counting the 549K AMPL and 319 WETH in Uni v2)
```
Geyser Platform Pair Chain SPOT Amount
Beehive v5 Uniswap v2 ETH/AMPL Ethereum 75,000 SPOT
Fly Uniswap v3 SPOT/USDC Ethereum 10,000 SPOT
Total 85,000 SPOT
```
# Use Arrakis PALM for Deepening DAO Owned Liquidity
# Summary
Deploy Arrakis PALM to conduct market-making on UniV3 for FORTH.
[Forum Discussion](https://forum.ampleforth.org/t/proposal-use-arrakis-palm-for-deepening-dao-owned-liquidity)
[Signal Vote](https://signal.ampleforth.org/#/proposal/0x44903b6fc5f4b78c450e9a8873e530e6f1d9e00c2c4485b50ad4491b48c22d21)
# Arrakis and PALM
**Arrakis Finance** is a trustless market-making infrastructure protocol that enables running algorithmic strategies on top of Uniswap V3.
Since launch, Arrakis has acquired:
* \>$1.7b in TVL at its peak (currently around $460m), across Ethereum, Optimism and Polygon
* \>25% Uniswap V3 total TVL
* \>80 projects have their liquidity managed via Arrakis vaults
A SPOT/USDC [Arrakis vault](https://beta.arrakis.finance/vaults/1/0xDF367477C5E596af88E8797c3CDe8E28854cb79c) is already used within the Ampleforth ecosystem to create an easy entrypoint to being a SPOT Liquidity Provider. It is also used as a way to tokenize LP positions so the geyser program can work with Uniswap V3. This vault currently holds > 40% of the [SPOT/USDC liquidity pool](https://info.uniswap.org/#/pools/0x7e0c73af898e1ad50a8efd7d3a678c23cd90b74c) on Uniswap.
**Arrakis PALM**, Protocol Automated Liquidity Management, is a liquidity bootstrapping mechanism that taps into the organic trading volume on UniV3.
PALM is designed to bootstrap liquidity by acquiring more base asset inventory. For instance, the Forth DAO can seed liquidity with an initial asset ratio of 90/10 in FORTH/ETH. PALM can progressively balance it towards a target ratio, like 50/50, only by taking advantage of the volatility to make markets for FORTH. Not only will this approach save the DAO Treasury from spending ETH on liquidity and FORTH/AMPL/SPOT on LP incentives, but it will also put no downward pressure on FORTH price since the market-making is done via setting up LP positions instead of doing swaps.
During the time of deployment, the Forth DAO community would have full transparency of the execution and performance of PALM via a custom dashboard, and it retains full custody of the liquidity in the vault. At any point in time, the DAO could withdraw the fund from the vault or revoke the managing access from PALM. PALM can only conduct market-making with the liquidity deposited in the vault, and will never be able to remove the fund.
A case study of Arrakis' first PALM deployment for Gelato's GEL token showed [very good results](https://twitter.com/ArrakisFinance/status/1623319923559636994), accumulating from 2 ETH to nearly 170 ETH in under 3 months.
Arrakis charges two fees:
* Management fee: 1% AUM fee on a yearly basis
* Performance fee: 50% of trading fees generated
Read more at--
Website: https://www.arrakis.finance/
Docs: https://resources.arrakis.fi/
# Current State of FORTH Liquidity
FORTH is listed on a variety of [Tier-1 centralized exchanges](https://www.coingecko.com/en/coins/ampleforth-governance-token#markets) like Binance, Coinbase, Kucoin, Kraken and does in excess of $5M of daily volume. Despite this, there is no meaningful FORTH liquidity onchain. Creating a pool onchain would allow the DAO to tap into the already decent volume in the surrounding ecosystem.
The Forth DAO Treasury [currently owns](https://www.ampleforth.org/dashboard/dao) 3.8M idle FORTH tokens. Deploying some of these into PALM would simultaneously support the ecosystem by providing liquidity and also safely diversity the treasury over time.
# Proposed Phase 1 Deployment
The DAO also holds $1.14M of AMPL/ETH liquidity on Uniswap V2, which includes ~552 ETH (~$595K). We could utilize 10% of the ETH in the AMPL/ETH pool to initialize the FORTH PALM vault in a 90:10 FORTH/ETH configuration.
That would initialize PALM with approximately:
* $540K in FORTH and
* $60K in ETH
totaling ~$600K to start.
Since PALM is a new system, an option to minimize risk is to start with $200K of assets, then reserve a follow on with the remaining $400K after a period of observation--perhaps after 1 quarter.
# Phase 2
After 50:50 equilibrium is reached, the DAO can revisit market making objectives. Since PALM is non-custodial and exists onchain, the DAO retains ownership of the assets and is free to withdraw them at any time. At this point, we can revisit if/how to adjust the parameters, or if/how much liquidity should be added or removed.
For example, the DAO could maintain the vault as is, repurpose the accumulated ETH and deepen AMPL or SPOT liquidity, or deploy the ETH for yield completely independently.