Gm Sendok!
Thankyou for your engagement with our proposal.
We wanted to address some of your concerns in our comment here.
- Boyco is down.
In our view this demonstrates the demand for Berachain which ultimately supports the intention behind this proposal. With more demand we can expect to see more liquidity deposited. We have full faith in the Berachain and Royco team’s technical prowess and don’t view this temporary downtime as indicative of anything negative.
- The numbers.
Apologies, our security settings don’t enable us to make it entirely public. However, we are accepting all viewing requests. Given the format screenshots would likely be confusing but if enough people request to view we will publish those in the comments.
These numbers show that once Berachain has sufficient USDC/WETH the DAO can turn off farm incentives. It’s clear investing in Hydra chains is an efficient use of STG.
- Allocation.
The target APY for the 90D lock period on Boyco is 6/7%. This would be approximately $3-4m. The rest of the STG allocation would be spread over the following 9 month period, so that liquidity is sustained post unlock. The amount of STG used will be slightly dependent on price as you mentioned, however will be no greater than 20,050,125 as determined by a backdated 90-day TWAP (putting the price of STG at $0.399).
The incentives will be focused on markets that create deep sinks specifically for USDC and WETH, both of which provide maximum benefit to Stargate.
Also, if the Treasury Consolidation Proposal is approved the DAO could look to direct capital towards Boyco/Berachain which would ultimately reduce the amount of STG externalised.
- Teams competing for allocation.
We think ultimately having a budget may result in more teams considering Hydra. There of course may be competition for budget, however, if anything this will likely simply bring more attention to Hydra and its potential for the DAO.
- Evaluating case-by-case Vs having a budget.
Whilst we are proposing a budget each case will certainly be taken very seriously. By having earmarked funds for this purpose and outlining a direct program the DAO would be making the adoption of Hydra much less burdensome and far more nimble. Ultimately, in our view, the DAO can more strategically identify targets and act on them with a clear budget outlined.