Exchange a Large Portion of Treasury for Ether to Provide Liquidity

We’re thinking of exchanging $400-500k of our USDC reserves to Ether to start providing liquidity on Uniswap/Sushiswap again at least until we work out the details with market makers. We’re already exchanging about $100k of profits into them but would like more. We also have about $500k profit in NXM that will hopefully be able to be liquidated for full price (rather than 33%) available once Nexus executes proposal 160, but are specifically here talking about exchanging USDC for Ether because it could have potential effects on runway if Ether suddenly drops to 0. The $400-500k number comes from that leaving about a year’s runway in our multisig if the entire market suddenly explodes.

Thoughts on this? With recent price movements it’s clear we don’t have enough liquidity, and we’d like to be able to add some along with the market maker (or at least in the meantime) to further stabilize price. There’s of course a certain amount of risk of volatility but I don’t see it as outweighing the benefits of much more liquidity.

Ok so we’ve exchanged $250k in ETH + $240k in ARMOR for Uniswap V2 tokens at this transaction Ethereum Transaction Hash (Txhash) Details | Etherscan. This is meant to just be an interim stake for now until final pools are figured out with MMs; it’ll likely be switched to a Uni V3 pool or elsewhere.

We felt this was important enough to move on quickly and easy enough to reverse that it would’ve been disadvantageous to go through a full DAO vote and that a temp check was adequate. We’ll be working on formal sets of rules for what does and does not go through a DAO vote. Definitely speak up if you have problems with either the provision of liquidity itself or the processes taken to provide it!

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