eIP 60 Ecosystem Initiatives Proposal

Title: [RFC] Ecosystem Initiatives Proposal
Author(s): @alisha.eth / @Euler_Foundation
Submission Date: 18 May 2024

Abstract

The Euler Foundation requests approval from the Euler DAO to distribute up to 1,000,000 EUL and 300,000 USDC to strengthen the Euler ecosystem.

These resources will be deployed at the discretion of the Euler Foundation to target initiatives that cultivate a more engaged and diverse community of stakeholders.

The aim of this proposal is to support the protocol’s upcoming relaunch, with a focus on growth and further decentralisation.

Motivation

In preparation for the protocol’s relaunch, scheduled for July 2024, the Euler Foundation has been working diligently to set up infrastructure and create initiatives to support existing and potential stakeholders in the Euler ecosystem.

To support this ongoing work, the Foundation is seeking to establish a discretionary fund of 1,000,000 EUL and 300,000 USDC to nimbly respond to and capitalise on opportunities that bolster the protocol and its ecosystem.

This strategic allocation will enable the Foundation to act quickly and efficiently to enhance the resilience and sustainability of the Euler ecosystem. Through these efforts, the Foundation aims to promote the continued development and success of the Euler protocol.

It is important to clarify that none of these funds will be distributed to members of the Foundation. Instead, the funds will be dedicated solely to initiatives that directly support the ecosystem’s advancement and the protocol’s broader objectives.

Specification

Fund the multisig 0x967B10c27454CC5b1b1Eeb163034ACdE13Fe55e2 with the following:

  • 1,000,000 EUL
  • 300,000 USDC

Thanks for this initiative! While I am mindful of the amount being asked, I understand that involving high quality contributors takes a great number of resources and so after some consideration I am supportive. It’s worth noting some of these funds may not be used, limiting the ask.

I would also like to add an addendum to the RFC nonetheless. It involves a small revision from our last vote on liquidity. Instead of the liquidity being full range, we should provide it at 50% down and 200% up.

If the price falls to 2021 prices and no DAO member will be upset that there’s no liquidity to buy. If the price goes above 200% from here, we can rely on a big buy wall around a $300M FDV. Once again any member of the DAO would be pleased with this outcome. This buy wall will enable many new entrants to reliably gain voting power in the DAO, creating new contributors.

I’m wondering for the sake of speed and elegance if you could add this 50% down 200% up change to our liquidity provision strategy to this proposal? As the launch approaches, the prospect of a 3 week discussion on this topic seems like a misuse of resources. However, if it feels appropriate to have the full discussion on this addition then I support that option as well.

There is still sufficient impetus to get this done before the protocol launches though as we want to facilitate governance token distribution - something current LP configuration (and subsequent market conditions) does not enable. To time the launch with simultaneously deeper liquidity would be optimal.

This change would need to be appropriately socialized but given the upcoming holiday everyone would have ample time to consider it and begin voting on the first day after the holiday.

What do others think of this idea?

I am for it but I would like to have more details, it seems quite vague.
I would also like to know more about the Foundation, we don’t know anything about it.
Concerning liquidity, we have already talked about it for a long time and we have already made a proposal for that so I am not for it, and then it has nothing to do with the subject of this proposal.

Hey @river0x I think it would make sense to submit your proposed addendum as a new proposal, intended to follow on from eIP 58 — this will make it easier for the DAO to track the outcome of that specific initiative.

Yes I was thinking on this over the weekend myself and roughly agree. Let’s move ahead on this one without my suggestion and I’ll transfer the discussion over there.

We plan to vote FOR, but we would like the costs of initiatives to be announced and somewhere to see a report on expenses

Hi @cp0x-AlexQ, an Euler Foundation website will be deployed in the coming weeks with more information about the Foundation, along with expenditure.

Voting has closed. eIP 60 passed. Link to Snapshot.