Implement an offchain Liqwid Stake Auction Program (LSAP)

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Summary:
This proposal aims to implement an offchain Liqwid Stake Auction Program (LSAP) during future Catalyst and Voltaire voting epochs.

Reasoning:
To date Liqwid has indirectly monetized its ADA deposits via the Liqwid DAO POL position on Minswap which receives trading fees from increased LQ-ADA volume during Catalyst voting epochs. This has only happened for 1 Catalyst vote. This method of monetizing ADA deposits is both indirect and inefficient.

In the current Liqwid DAO Catalayst voting system individuals and projects can purchase LQ tokens to vote for their Catalyst proposal to receive Liqwid DAO voting power only to sell these tokens shortly after the proposal vote ends.

Risk Considerations:
The main risk is low quality projects that do not improve the Cardano DeFi or developer ecosystem may be the highest bidder for the Liqwid Stake Auction Program (LSAP). This risk is being mitigated by the Liqwid Labs core team completed an initial analysis of the proposal and only accepting stake auction bids from individuals or teams with Catalyst or Voltaire proposals we feel at a minimum are neutral goods acting with good intentions for improving the state of Cardano DeFi and developer ecosystems.

Proposal Specifications:
If this proposal is passed an offchain based staked auction program will be implemented during future Catalyst and Voltaire voting epochs.

Conclusion:
Liqwid Labs core team recommends the adoption of this proposal to implement a Liqwid Stake Auction Program during future Catalyst and Voltaire voting epochs to better monetize the protocol’s ADA voting power.

Do you support this proposal to implement a Liqwid Stake Auction Program during future Catalyst and Voltaire voting epochs?

  • Yes, I support this proposal to implement an offchain Liqwid Stake Auction Program
  • No, I do not support this proposal to implement an offchain Liqwid Stake Auction Program
0 voters
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I am in full support of this proposal :100:

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3

Like the idea but would like to see the auction mechanism likely to be implemented.

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I voted “no” because the Liqwid Labs core team stated they would only accept stake auction bids from individuals or teams with Catalyst or Voltaire proposals that are seen as neutral and aimed at improving Cardano’s DeFi and developer ecosystems. My concern is: what safeguards are in place to handle potential conflicts of interest? How can we be sure that a proposal won’t unfairly benefit certain parties or introduce bias?

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