What are next steps for liquidity?
On February 25th, ~3.75% of the Radicle token supply was made available for interested parties within the Radicle community. It used Balancer a decentralized exchange and leverages a mechanism called Liquidity Bootstrapping . This event allowed anyone to acquire RAD for USDC.
Over 1800 new token holders participated in the event, claiming over 50% of the RAD tokens put on Balancer at the beginning of the event. This event raised ~$25M in the Radicle Treasury, a smart contract controlled fully and transparently by Radicle token holders.
The event has now successfully concluded, but there is still a lot of interest in trading RAD. While over $200k of liquidity has been added to a community RAD/ETH pool on Uniswap, there is very little liquidity on other decentralized exchanges.
The reason that a team-led liquidity pool hasn’t been created is because the core team does not control the funds raised by the LBP and/or the funds in the Radicle Treasury. Therefore, any proposed liquidity provisioning from the Radicle Treasury of LBP funds must be voted on via an official proposal.
There is already a community discussion on using the remaining balances from LBP to add liquidity and an official proposal is in the works.
Meanwhile, a core team member has created a Snapshot poll outlining an immediate short-term solution to unpause swapping on the Balancer LBP pool. Since the Balancer pool weights have converged to 50/50, this pool could effectively function as a regular DEX, as opposed to an auction (like it did during the 48hrs of the LBP event). This pool is not controlled by the
governor, so unpausing the pool is a decision that can be made via off-chain governance.
Community members are encouraged to vote in this Snapshot poll and contribute to the formal discussion here so this can be moved through the official governance process.