FORTH Allocation for Liquidity Provisioning

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 option below. The repayment option allows the purchase of the full 800,000 FORTH loan amount on the respective option expiry date at a strike price specified below.

The Strike Price: $4.24723

Maturity Date: Jan 30th, 2025

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

If approved by governance, 800,000 FORTH will be sent from the DAO’s treasury to address:

  • eth:0xc3a947372191453Dd9dB02B0852d378dCCBDf271
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To clarify, and please correct me if I’m mistaken, this proposal appears to introduce the Ampleforth Foundation as an intermediary in the deal previously proposed by Wintermute here, while keeping other key aspects such as length, strike price, and amount, essentially unchanged.

Being lazy on Sundays I’ll just refer back to my initial response to the original proposal, see here.

While I understand the sensitive nature of the information underlying this proposal, and I want to be clear that I maintain trust in the genesis team’s intentions for the DAO’s welfare, I believe it’s crucial to highlight that the details currently provided do not equip the broader community with sufficient context to make a well-informed decision. It’s worth noting that similar concerns were raised regarding the transparency of motives in the recent Proposal to reduce the DAOs FORTH holdings.

Note that while previous proposals saw significant analysis and engagement from the community, see eg the AIP-5 discussion or recent SPOT ratio update discussion, such engagement seems less feasible, or perhaps even less encouraged, with the current proposal.

C’est la via regarding financial deals I guess. However, I must emphasize the importance of the genesis team’s role in not just guiding but also educating and equipping the community to independently and effectively weigh in on these matters in the future.

With all that said, my support for this proposal rests on my trust in the genesis team’s intentions.

2 Likes

link to the signal vote is live:
https://signal.ampleforth.org/#/proposal/0xbecbe9683479a1ca1937b847b4d648d580765c095289fe1def4eff8963c076ab

1 Like