[BIP-516] Exit from D2D/BAL pool

Governance
1

PR with Payload

Intro

PrimeDAO, issuer of D2D tokens, has a long relationship with Balancer. Back in Nov’21, a partnership was approved by governance to seed liquidity in a D2D/BAL pool. This pool has suffered severe losses and, as of today, Balancer is practically its sole LP, with ~$32k worth in its position. Currently, the pool sees little to no action and Prime DAO only has incentives to LM on D2D/USDC (Ethereum) and D2D/rETH (Arbitrum).

Proposal

This proposal seeks to unstake and withdraw proportionally (50/50) from the position, keeping both the D2D and BAL tokens back in the Treasury.

It’s our expectation that BAL with grow in value somewhat still correlated to ETH, and D2D might not see the same upside, therefore taking even more IL in this position. This way, we can save whatever BAL we have left (~4k at the time of writing).

There’s not enough liquidity on-chain to sell D2D and we are not looking to kill our partnership, so other strategies for using the D2D may be presented to governance as appropriate.

Noting that these assets were not under Karpartkey’s management.

Specification

The DAO multisig on Ethereum 0x10A19e7eE7d7F8a52822f6817de8ea18204F2e4f interact with the D2D-BAL BPT token contract at 0x8f4205e1604133d1875a3E771AE7e4F2b0865639 and call transfer with arguments
recipient as the Maxis LM multisig 0xc38c5f97B34E175FFd35407fc91a937300E33860 and
amount as 136955000000000000000000 representing the LP tokens currently held by the DAO multi-sig
After the funds have been transfered to the Maxi LM multi-sig, it will execute a withdrawal and transfer of funds to the Balancer DAO multi-sig concluding the transaction.

Pool: D2D/BAL
BPT Token holdings reference: 50N/A-50N/A (50N/A-50N/A) Token Tracker | Etherscan

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Hey, @Danko8383 - thanks for drafting this initial thread and reaching out!

Given that PrimeDAO’s focus has shifted to other pools, and we barely used the D2D / BAL for any governance decision as initially planned, it makes sense to move out of it.

After a slow start in 2023, PrimeDAO has been building two new products around the two active gauges we have:

If BalancerDAO wants to utilize its D2D, I propose to join either pool to support and benefit from those initiatives. I believe BalancerDAO holds both USDC and ETH, and propose Balancer match their D2D with the relative (20% of the pool) counter asset when entering one of the pools.

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https://snapshot.org/#/balancer.eth/proposal/0x2dee71b0514455033c7c2b8b9cc89494183a1baa5abed53bd8fae3ac3df49f51