FORTH Allocation for Liquidity Provisioning (2025)

Ampleforth Governance
1

See here for last year’s market making agreement.

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 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 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
3 Likes
2

I would also recommend using the recent market pullback as a way to repurchase the FORTH inventory that was sold as part of the last loan option agreement.

The last round sold 600K FORTH at $4.24723. If we repurchased those on the market at the current price of $2.84, it would allow the DAO to both recover its FORTH position and net $844,338.

If there’s support, this would be executed as a TWAP buy on Cow Swap via the Kennel Club.

5 Likes
3

The onchain vote is submitted here. Voting starts in ~2 days.

1 Like