The Tokemak CoRE3 vote is underway and ends on May 9th at 3pm EST. This represents an opportunity to secure a BAL reactor, after which we would likely have to decide to either execute a token swap or deposit some BAL from the treasury to farm TOKE. There is around $1B of liquidity at current prices that will be directed by TOKE voters in the future. If this proposal passes, Balancer officially enters the Tokemak game and we will be exploring any and all options for securing as much of this liquidity for Balancer as possible.
As a side effect, this could lay the groundwork for a future partnership between Balancer and Tokemak. Our technology can offer them many advantages over deploying liquidity to Sushiswap or Uniswap - by allocating up to $2M BAL to bribe in CoRE3 we signal that we are interested in exploring how our communities can work together to benefit everyone.
We plan to deploy the bribe in stages depending on how the competition evolves as the vote comes to an end. There is a good chance the full $2M will not be required to win. For reference, here is Terra’s strategy for CoRE3 which is very similar to ours.
This reactor would create an additional sink for BAL tokens. People farming BAL might deposit it in the reactor to earn TOKE.
- The $2M BAL is not sent from the DAO Multisig in time before voting ends
- The BAL will be returned to the Treasury or the transaction to send it rejected
- The bribe is not sufficient to win CoRE3
- Redacted Cartel assures me that many eyes will be on this vote as it nears completion - even a late bribe stands a very high chance of success. But there are no guarantees. Voters may not adjust in time or our $2M might be insufficient to win.
- We don’t need to be #1 but simply enter the winning group (top 5)
- The potential ROI on this $2M is hard to quantify. There is an opportunity here but how long it would take to recoup this $2M is impossible to predict
- veBAL voters must decide if this represents a promising opportunity or a poor use of capital. My goal here is mainly to present the choice as I find it to be quite interesting personally.
If approved, $2M BAL at the prevailing market price when the vote ends (~155k BAL at time of writing) will be sent from the DAO Multisig
0x10A19e7eE7d7F8a52822f6817de8ea18204F2e4f to the LM Multisig
Crypto markets being what they are, it is best to leave the exact amount of BAL undetermined to ensure we have sufficient capital to win if we enter the bribe game.