[Proposal] Deposit LUSD from dxDAO Treasury into B.Protocol-Liquity SP

Hey dxDAO fam,

Following the successful vote on the TDP V3 proposal, B.Protocol would like to propose the dxDAO to deposit its newly purchased LUSD into Liquity’s Stability Pool via B.Protocol to passively gain up to 20% of passive APY.

Liquity are the creators of LUSD and offer LQTY rewards depositing LUSD into its Stability Pool (SP), with currently over 12% APY. These LUSD are used for liquidations, where some of the LUSD is taken in return to ETH. The liquidation process gives rise to another source of revenue, as the ETH is given with a 10% discount. Typically a depositor will then have to manually sell his ETH back to LUSD and deposit it back to the pool (aka Rebalance). But with B.Protocol this process is automated.

B.Protocol is a backstop liquidity protocol founded in mid-2020 by Yaron Velner (ex-CTO of Kyber Network). B.Protocol v2 is using its novel design of the Backstop AMM (B.AMM) to automatically rebalance LUSD positions in the SP after liquidations occur. This way LUSD LPs do not need to run a bot or manually rebalance their positions.

Earlier this week B.Protocol has also launched a new Liquidity Mining program distributing BPRO (B.Protocol governance token) to Liquity users who deposit LUSD into the SP via the B.Protocol’s app.

This proposal can go hand in hand with the latest proposal from Gro Protocol, having different yield strategies for the idle funds of the dxDAO treasury.

We would be more than happy to answer any questions here or on any community or private calls.

Website - https://www.bprotocol.org/

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