[PROPOSAL] Execute liquidity restructuring and TEMP buyback

Governance Tempus Treasury
#1

TL;DR

Remove liquidity from the TEMP / WFTM pool on Spookyswap and execute a buyback with the WFTM withdrawn from Spookyswap

Background

The TEMP token is currently traded on four decentralized exchanges (DEXes), and the total TVL across these DEXes is approximately equal to $10 mln. We analyzed the relationship between TVL in DEXes and circulating market cap among three peers to see how Tempus compares with them.

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According to the figures from our peers, TEMP has significantly over provided liquidity to the pools, and sometimes too much liquidity can also have negative implications as it limits scope of price discovery. When benchmarked against peers, TEMP’s liquidity on DEXes should be around $ 2.2 mln.

In the last three weeks, the TEMP price has traded within the $ 0.11-0.12 range, and one can trade over $150k within 2% of the current price, i.e. $0.002. This indicates that most of the liquidity deposited in DEXes does not generate trading fees.

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PROPOSAL

We propose to:

  • Remove treasury-owned liquidity from the TEMP / WFTM pool on Spookyswap as it’s not being traded nearly as much as Ethereum pools. Further, we are tying the TEMP price to WFTM, which could result in excess downward pressure on the TEMP price
  • Bridge the resulting TEMP and WFTM back on the Tempus Treasury on Ethereum
  • Use the WFTM to execute a Treasury buyback across all Ethereum DEXes

This will allow:

  • Higher trading volume
  • Better price discovery
  • Upward pressure on the TEMP price through approx. $ 0.680 mln buying power

The resulting TEMP liquidity allocation across DEXes will look like this:

The proposed allocation would imply that 57% of the total TVL is paired with volatile assets, a marginal reduction from the current 62%. This allows TEMP to maintain a balanced exposure to the directionality of the broad market.

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FOR

Remove liquidity from the TEMP / WFTM pool on Spookyswap and execute a buyback with the WFTM withdrawn from Spookyswap

AGAINST

Do nothing

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We think the community should vote in favor of this proposal, based on the aversion we have seen towards adding more treasury-owned liquidity to the TEMP / BNT pool.

Please let us know your thoughts. If all in favor, we suggest to move this up to a vote by Wednesday 6th April 2022

1 Like
#2

Vote = Yes. Great idea and great work on everything David

#3

I like this idea.
Considering all the facts from proposal, it makes total sense.

1 Like
#4

GM all. Just by way of update on this, the community voted in favour of the Snapshot vote on this proposal.

Liquidity has now been removed from the TEMP/WFTM pool on SpookySwap and bridged back to Ethereum. We will be executing a Tempus Treasury buyback with the resulting funds shortly.

Txn hashes:

#5