After a bit less than a year, the PALM vault has achieved its primary Phase 1 liquidity objective of reaching a 50:50 FORTH/ETH ratio.
Phase 1
The performance over this period is best seen on this dashboard:
https://dashboard.arrakis.finance/?network=ethereum&vault=0xe2cbdbc298d884a2ded6b554702f514ed3364264
The vault was seeded following the two-staged risk minimized approach of:
- 51,500 FORTH ($172,593) + 10.4 WETH ($19,240) on 4/21/23
- 99,108 FORTH ($339,771) + 17.5 WETH ($32,048.72) on 5/1/23
Totaling:
- 150,608 FORTH + 27.9 WETH worth ~$563,652.72 at the time
It now holds:
77,447 ($555,294.99) FORTH + 197.77 ($671,389.596) WETH worth ~ $1,226,684.59 today
Now we can discuss what to do for Phase 2.
Phase 2
There is unfortunately no way to partially withdraw assets from PALM, so the DAO would need to withdraw all or nothing. This is one restriction of the PALM system. Then, if it wanted to start a new program, it could initialize a new vault.
So I propose that the DAO reclaim all the assets at this time.
It’s worth noting that the PALM vault holds an 87.96% share of the UniV3 liquidity. If we want to keep some remaining liquidity onchain in the meantime, we could reserve some amount to keep in an unmanaged infinite band. Perhaps 10% of the reclaimed assets, but I’m open to hearing everyone’s thoughts on this.
In terms of what to with the reclaimed assets, there are a number of initiatives that could be considered, including:
- Combining the assets with even more FORTH to create a second, larger run on PALM
- Deepening AMPL/ETH liquidity on UniV2
- Deepening SPOT/USDC liquidity on ETH and/or Base
- Deepening WAMPL/ETH liquidity on BASE
- Deploying FORTH/ETH liquidity to BASE, if we wanted to leverage FORTH as an incentive token on Aerodrome
However, I propose that we table this specific discussion until the next geyser refresh round, so that it can be considered holistically within the ecosystem. Given the current geyser schedule, this should happen within the next week or so.