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Liquidity

Sustainable Liquidity

MAGIC is a scarce resource. This is a key tenet of the Treasure metaverse. Mining rewards will continue to halve each year. LP rewards should align with this trajectory to ensure 1) ecosystem balance and 2) to build long-term sustainability. Achieving sustainable liquidity will involve:
  • a progressive reduction in LP rewards to sustainable emissions, reviewed ongoing;
  • creation of a MAGIC<>gOHM pair;
  • pursuing protocol owned liquidity; and
  • exploration of alternative liquidity solutions.
Note. TreasureDAO aims to create a longer-term plan to sustainable liquidity.

Short-to-Medium Term

  • Launch MAGIC<>gOHM SLP pair and rewards as mentioned previously. OHM are in the process of moving to their v2 token gOHM which is the governance enabled wsOHM (among other upgrades). This means you will benefit from the rebasing of sOHM, while still being able to use it within other DeFi applications such as a liquidity pair (similar to wsOHM)
  • We are working closely with the OHM DAO Policy Team regarding a launch date. As part of OHM’s shift to gOHM, they have proposed ‘OIP-45 Proteus’ - a ~$100m USD incentive programme to bootstrap liquidity for gOHM across chains (https://forum.olympusdao.finance/d/381-oip-45-proteus).
  • Pursue MAGIC<>gOHM (and possibly MAGIC<>ETH) bonds. As mentioned several times, we have long term ambitions to own a material portion of our liquidity. This helps mitigate mercenary capital, diversifies treasury and gives the DAO more flexibility over policy decisions. This would not replace LP rewards, rather we see them as complementary strategies. Ideally the above bond programme could be executed through OHM Pro, leveraging our MAGIC<>gOHM pair. Pending approval, we will be part of the first cohort on Arbitrum. This is a key step in our strategy to build protocol owned liquidity and effectively manage treasury.

Medium-to-Long Term

  • LP Abstractions: We believe liquidity can be enriched through creative solutions that abstract away complexity while embedding MAGIC across the metaverse. We will be actively exploring frameworks that gamify and embed composable MAGIC LP within partner ecosystems that they are incentivised to grow. For example, wrapping MAGIC LP as $TOKEN within Smol Brains, then integrating $TOKEN into core economic loops within the Smol Brain ecosystem such that demand for $TOKEN results in depth in MAGIC liquidity; but without the user consciously knowing they are adding liquidity to MAGIC (learn more over at Liquidity Abstraction)
  • Other liquidity options such as Tokemak will be explored overtime (note: it is extremely competitive to become a Tokemak reactor)