Stablecoin DeFi Liquidity Budget
The primary goal of this budget proposal is to increase liquidity on Cardano, specifically by supporting stablecoin liquidity. The secondary goal is to generate revenue for the treasury. 50,000,000 ADA is requested to create a fund composed of ADA and fiat backed stablecoins to support the Cardano decentralized finance (DeFi) ecosystem. The majority of the funds (99%) in this budget will be disbursed to DeFi protocols including decentralized exchanges (DEXs) and lending protocols to help seed liquidity on Cardano. Funds must only contain ADA, fiat backed stablecoins, and liquidity tokens from deployment into DeFi protocols. The funds will be managed from a smart contract administered by a 9 person interim committee composed of publicly identified individuals with oversight from a newly established treasury DAO (tDAO), where membership in the treasury DAO includes decentralized representatives (dReps). After 1 year, the tDAO will be required to elect a new committee or else no actions can be taken. The tDAO has the oversight abilities to impeach, elect, and ultimately shut down the fund and return funds to the treasury. In addition to the fund, this proposal will establish a number of public goods including a legal framework for future community involved proposals like this as well as an open source governance contract with executive and oversight functionality.
Reasoning
Written after the vote was cast
What this asks for, and from whom
An Info Action authorizing a Stablecoin DeFi Liquidity Budget.
What would have to be true for this to be a good use of treasury funds
Stablecoins are the missing piece. Cardano DeFi without deep stablecoin liquidity is a car without fuel, and every serious user and institution starts by asking what stables are available and how deep the books are.
What specifically concerns me
Liquidity programs are notoriously good at renting activity and notoriously bad at keeping it. The number that matters is what remains after incentives stop.
What I am asking of the proposer if this passes
It was dropped. Any stablecoin liquidity program that comes back should publish retention: liquidity present 90 days after incentives end. That single metric separates real market development from paid-for statistics.