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thomas-waite
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eswak
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eswak
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PR looks good to me if we happen to go for an LBP
I'm neutral and think a redeem-only PSM would be ok too.
Don't have a strong opinion either way.
| const dpiToDaiSwapper = await BalancerLBPSwapperFactory.deploy( | ||
| addresses.core, | ||
| { | ||
| _oracle: addresses.chainlinkDpiUsdOracleWrapper, |
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did you check the oracle's direction. in other words what is the initial swap price and is inverting the oracle appropriate
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I think its fine, and can be changed if need be later
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Yep I did, it reports the price of DPI in terms of DAI so does not need inverting. It currently reports 96216077210000000000 which is 96.2 DAI - close to the coingecko DPI price of ~$96.12
proposals/dao/swap_dpi_to_dai.ts
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| await time.increase(await contracts.dpiToDaiSwapper.remainingTime()); | ||
| expect(await contracts.dpiToDaiSwapper.isTimeEnded()).to.be.true; | ||
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| const signer = await getImpersonatedSigner(addresses.optimisticTimelock); // TODO: TribalCouncil should grant itself SWAP_ADMIN_ROLE |
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do you need to add this? Dao could grant
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Done. Had the DAO take admin of SWAP_ADMIN_ROLE role back temporarily to grant the role to the TribalCouncil timelock. Then returned admin control to SWAP_ADMIN_ROLE
Joeysantoro
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Joeysantoro
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Approved this assuming the span is shrunk to 2 weeks. The other things can be a separate PR
| target: 'core', | ||
| values: '0', | ||
| method: 'createRole(bytes32,bytes32)', | ||
| arguments: [ | ||
| '0x471cfe1a44bf1b786db7d7104d51e6728ed7b90a35394ad7cc424adf8ed16816', // SWAP_ADMIN_ROLE | ||
| '0x899bd46557473cb80307a9dabc297131ced39608330a2d29b2d52b660c03923e' // GOVERN_ROLE | ||
| ], | ||
| description: 'Transfer admin of SWAP_ADMIN_ROLE to GOVERNOR, so it can be granted to the TribalCouncil' |
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just grant DAO timelock the ROLE_ADMIN.. Shouldn't be changing roles like this
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yep good point, missed that it already had ROLE_ADMIN so this was redundant
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Summary
Long time horizon LBP to swap DPI for DAI. Pull DAI from the Compound DAI PCV deposit and use to fund the swapper.
Preferring an LBP over a sell-only PSM as there is low on-chain liquidity compared to the amount we want to sell (selling ~$3.7m, with 24hr DEX trading volume of ~$800k). A PSM would have no limit on the rate at which DPI could be sold, potentially allowing the price to be significantly negatively affected.
The exchange issuance mechanism provided by Set was considered (unwind the DPI into underlying, then sell the underlying on Uniswap/Sushiswap), but it has high slippage of ~11%.
Pools available for arbitrage
There is only one other DPI pool available on Balancer. The arbitrage on this LBP will be against the Uniswap pool containing DPI.
There will therefore be a chain of arb bots required across AMMs and that in combination with gas prices being elevated means the arbing process will be less efficient. Slippage will be higher and it will cost the protocol more than for other LBPs.
LBP Parameters: