Optimize DAO Liquidity Deployment

DAO Governance Main DAO Proposals
1

Summary

This signaling proposal seeks approval from the Neutron DAO to optimize its current liquidity positions across dATOM, dNTRN, and ATOM pairs. The program involves withdrawing DAO-owned liquidity from Astroport pools and redeploying capital into Supervaults, with management handled by the Neutron Foundation.

The goal is to preserve sufficient market liquidity for users while ensuring DAO assets are deployed in a way that maximizes efficiency and long-term sustainability.

The actions covered in this proposal are to adjust NTRN-dATOM, USDC-dNTRN and NTRN-ATOM liquidity.

Detailed Proposal

Action 1: NTRN-dATOM

  • Current position: $2.36M
  • Execution Plan:
    • Withdraw DAO-owned liquidity.
    • Reallocate a portion into ATOM-USDC and dATOM Supervaults under Foundation management.
    • Return remaining NTRN to the DAO Treasury.
  • Impact: DAO resources are optimized, while dATOM remains liquid for users.

Action 2: USDC-dNTRN

  • Current liquidity: $1.11M
  • Execution Plan:
    • Withdraw DAO-owned liquidity.
    • Reallocate $200k to Supervaults managed by the Foundation.
    • Return the rest of the dNTRN to the DAO Treasury for future strategic use.
    • USDC will be managed by Neutron Foundation
  • Impact: dNTRN liquidity is correctly sized and more efficient through Supervaults.

Action 3: NTRN-ATOM

  • Current: 433k / 454k
  • Execution Plan:
    • Withdraw DAO-owned liquidity.
    • Return NTRN to the Treasury.
    • Deploy ATOM into ATOM-USDC Supervaults under Foundation management, rebalancing positions as needed.
  • Impact: Liquidity is shifted to a healthier structure, strengthening ATOM-USDC markets and optimizing DAO asset deployment.

Implementation

Liquidity management, including withdrawals, redeployment, and supervision of Supervault positions, will be executed by the Neutron Foundation on behalf of the DAO. The Foundation will:

  • Ensure sufficient liquidity for each pair.
  • Optimize allocations across Supervaults.

Governance Votes

  • YES — You support the optimization of DAO liquidity positions as outlined, with liquidity management executed by the Neutron Foundation.
  • NO — You reject the plan and prefer to maintain current DAO liquidity deployments.
  • ABSTAIN — You wish to contribute to quorum without expressing a position.
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