A proposal to roll out a Treasury Bills campaign on ApeSwap was passed by the DappRadar DAO on Thursday morning.
Co-authored by members of the DappRadar and ApeSwap DAO teams, the DappRadar Community Proposal 6 (DCP-6) seeks to increase the protocol-owned liquidity of DappRadar’s DAO by launching a new Treasury Bills campaign on ApeSwap.
DappRadar DAO currently employs two liquidity programs – rented liquidity and protocol-owned liquidity. While the former provides low slippage and deep depth, the latter gives the DAO more control over the market liquidity. The DAO draws liquidity from two platforms – SushiSwap and ApeSwap.
In the case of SushiSwap, liquidity providers (LPs) are paid a certain amount of tokens to maintain the liquidity, meaning that the liquidity could disappear once renting stops. Although ApeSwap offers a similar service, it offers an additional liquidity program known as Treasury Bills, which rewards the DAO with POL tokens.
The decentralized autonomous organization asserts that despite the associated benefits of its rented liquidity program, it comes with a significant operation cost. In particular, the DAO was initially rewarding LPs on SushiSwap with approximately 555k RADAR daily to achieve liquidity of nearly $1.6 million. On the flip side, LPs on ApeSwap received 261k RADAR per day, translating to liquidity of approximately $200,000 plus $120,742 in POL.
There is some traction on ApeSwap in regards to liquidity, treasury revenue, and users, and would like to slowly reduce the reliance on rented liquidity and increase the volume of Protocol-Owned-Liquidity […] We have already begun reducing the incentivization of rented liquidity and increasing the incentivization of protocol-owned-liquidity.
Following the community’s vote to adopt the proposal, the DAO will allocate 40,769,233 RADAR (~226k/day over the next 180 days) for the ApeSwap Treasury Bill program to increase the protocol-owned liquidity in its treasury.