[Proposal] Treasury Swap with BeethovenX

Governance General Proposal
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Note: This proposal will not proceed to a vote until the Optimism deal has successfully passed a vote in both Balancer and BeethovenX governance. If that fails to happen, this proposal will be discarded. I only present it now so that all the cards are on the table so to speak.

Motivation

If the vote for BeethovenX to lead a Balancer Optimism deployment passes it represents a significant step forward in the partnership between the two projects. There is a strong financial incentive on both sides to direct emissions to Optimism. A treasury swap with voting rules would secure Optimism a base of guaranteed emissions in case veBAL wars heat up significantly and the ROI on bribes starts to approach zero.

70,000 BAL would be exchanged for the equivalent USD value of BEETS using the 90 day moving average price when the votes pass on both sides.

BeethovenX would purchase the necessary ETH using their treasury funds to provide BAL/WETH liquidity with no price impact and lock into veBAL for the max duration of one year. They will only vote for Optimism pools and they will be excluded from receiving any bribes on those pools.

Balancer can optionally purchase the necessary FTM using treasury funds to provide BEETS/FTM liquidity with no price impact and lock into fBEETS for the max duration of three months, once locking becomes available. If Balancer does not choose to lock fBEETS, they agree not to sell on the open market for at least one year. If a decision to sell is made after that time period, it must be staggered over the course of at least one month to minimize price impact. An option for directing BEETS towards Optimism will be added in the BeethovenX gauge vote and Balancer must vote for Optimism pools.

Specification

If approved, the DAO Multisig 0x10A19e7eE7d7F8a52822f6817de8ea18204F2e4f will send 70,000 BAL to BeethovenX (address to be added before snapshot vote).
BeethnovenX Treasury on Fantom 0xa1e849b1d6c2fd31c63eef7822e9e0632411ada7 will send the equivalent USD value of BEETS to Balancer’s Treasury on Fantom 0xFe2022da08d17ac8388F5bEFE4F71456255105A4

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BeethovenX has demonstrated to be a solid partner. I therefore support this proposal

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Hi @solarcurve

Thanks for being proactive with this proposal and the Optimism plans.

The amount of BAL to be swapped seems about right; however, the 90-day moving average appears to work too much in favor of BEETS.

The current BEETS price is $0.236, with a 90d moving average of $0.669 (for comparison, the 30d moving average is $0.4495).

The current BAL price is $12.60, with a 90d moving average of $13.78 (and a 30d moving average of $15.53).

At current market Price = 70,000 BAL = $ 882,000 = 3,737,288 BEETS
At 90d average = 70,000 BAL = $964,600 = 1,441,853 BEETS
At 30d average = 70,000 BAL = $1,087,100 = 2,418,464 BEETS

At the current market rate - Balancer would get 2.59x the number of BEETS compared to the 90d average and 1.54x the number of BEETS compared to the 30d average.

Given the recent changes in BAL tokenomics and the current BEETS valuation - I think we could:

  1. Use the 30d average instead, or
  2. Agree on a specific swap ratio both DAOs feel comfortable with

In combination with the Optimism fork proposal - I feel BalancerDAO is providing a bunch of value through this swap (as 70K BAL gives substantial voting power to be guided presumably completely to the BEETS x BAL fork on Optimism) and should therefore not lose on the swap ratio.

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