EDIT: Proposal on chain up for voting: https://governance.neutron.org/proposals/A/45
Summary
This proposal seeks the DAO’s approval to migrate its axl.USDC/NTRN holdings to native USDC and the corresponding pool on Astroport to eliminate bridge risk and sponsor the adoption of Noble USDC as the canonical representation of USDC on Neutron.
Proposal
The Neutron DAO currently owns roughly $3.7M worth of axl.USDC / NTRN liquidity from the Genesis Event.
Since the launch of native USDC on noble and the launch of the transmuter pool, Neutron’s DeFi ecosystem has widely adopted the more secure representation of USDC, which is now integrated on Mars, Nolus, Astroport and other applications.
This proposal seeks the DAO’s approval to migrate the totality of the DAO’s axl.USDC/NTRN liquidity on Astroport to the noble.USDC/NTRN pool to complete the transition of the DAO’s holdings to the new canonical USDC denomination.
While the exact token amounts will vary by the time this proposal is executed, currently this would represent a withdrawal of 2815023.464877 LP tokens containing about 1.8M USDC and 4.4M NTRN.
Given the limited liquidity available in the transmuter, a trustless migration would be at risk of failing due to lack of USDC liquidity, and would require custom contract development. Instead, to streamline operations, we propose that this transaction be assisted by the LiquidSig committee that currently manages the Neutron pilot incentives program.
If approved, the migration process would be as follows:
- This proposal will transfer the DAO’s axl.USDC / NTRN LP token holdings to the LiquidSig treasury (see below)
- LiquidSig will withdraw the liquidity from the axlUSDC / NTRN pool
- LiquidSig will collaborate with Noble to swap the axlUSDC to nobleUSDC 1:1
- LiquidSig will provide the resulting nobleUSDC/NTRN liquidity to the pool on Astroport. The DAO’s liquidity will NOT be staked so as to not dilute incentives to other DeFi participants.
- LiquidSig will return the resulting LP tokens to the Neutron DAO Treasury.
About the committee
Multisig: neutron1tthvu9rswd95a5hjryx9e2k39npnqffmkf6wlxr8qg8586rjvxhsrhvmk3
Members:
- Spaydh (Neutron)
- Udit (TimeWave)
- Rarma (Community Oversight)
- Andre (Astroport)
- Dane (Mars)
- Luisqa (Neutron)
- soi2studio (Neutron)
Timeline
- Proposal published for community discussion on the Neutron forums. (Aug 27)
- Neutron Foundation will post the proposal on chain (Sep 1)
- Multisig will perform the corresponding transactions to liquid stake, provide liquidity and return the LP tokens to the DAO (Sep 15)
Tx Message:
{
"wasm": {
"execute": {
"contract_addr": "neutron137rzkacryzstfyylvvvu2vq9uj5l89yzx9v7gxp0s77xq5ach2xs3t6t3p",
"funds": [],
"msg": {
"transfer": {
"amount": "2815023464877",
"recipient": "neutron1tthvu9rswd95a5hjryx9e2k39npnqffmkf6wlxr8qg8586rjvxhsrhvmk3"
}
}
}
}
}