PSP-BPΔ1-5: Protocol owned liquidity (POL) budget (11M $PSP, 4.63% budget)

Following some great discussion I had over at the Discord, I wanted to discuss allocating a relatively small amount of $PSP to a potential way of having ‘true’ protocol owned liquidity: Pairing the $PSP with Tokens acquired from Positive Slippage ( A topic previously discussed in the forums Positive Slippage Income )

Compared to other protocols, one advantage Paraswap has is the inevitable acquisition over time of tokens accumulated from positive slippage. Looking at the linked wallet, some of the most saved tokens, such as WETH/ETH and USDC would make for great asset pairs, all without even having to sell any $PSP.

While I still think that other ways of acquiring POL are worth considering to have a significant amount of pooled volume acquired, the advantage of adding this to the budget would be adding sell-pressure-free liquidity to the DAO, which at the same time would slowly grow thanks to DEX fees. The only disadvantage of this could be impermanent loss, but that is not as relevant as having truly DAO-owned liquidity, in my opinion.

Doing some quick napkin maths, assuming we only do USC and ETH pools, the allocated budget would be between 350k and 1M PSP , depending on whether we decide to use ~30% of this slippage pool or 100%, which I would not recommend as we could use those assets for other purposes as well.

What do you all think, would it be worth permanently acquiring some LP for the DAO, even if the amount is relatively minor?

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