Allocating $ldo $cream $gal from community fund to buyback $wnxm

Governance Discussions Nexus Mutual DAO Proposals
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The community fund holds approximately 107k $Lido, 1750 $Cream, 1,500 $GAL (combined worth approximately $225k as of July 24 2022), see https://etherscan.io/address/0x586b9b2f8010b284a0197f392156f1a7eb5e86e9

I propose to use these tokens to buyback $wnxm given it trades below book value and could be used in a more aligned way to compensate future contributions from the community vs paying those contributors in $lido, $gal or $cream. One could also argue that both Lido and Cream are on paper more overvalued than $wnxm, given $wnxm trades over 50% below its intrinsic value of $eth.

To improve execution compared to last time, i’d suggest to use 1inch gasless limit orders or cowswap, and to only pay up to 0.015 eth per $wnxm, and otherwise wait with buying back til it goes below this or a lower threshold.

Thoughts? Alternatively would suggest selling those tokens for stakedETH for the community fund to pay future contributors

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I think it’s a conversation worth having.

However, of that amount :

, $LIDO accounts for the extreme majority. It might benefit a lot from the Merge coming end of summer. Not sure if the time is right?

But overall I support this idea of : sell CF tokens → buyback $WNXM, since we are paying contributors with it.

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maybe, one path could also be to dollar cost average sell during next 3 months (selling ⅓ of all tokens other than $wnxm per month)

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Agree with Gauthier, majority of value is in the LDO tokens and tend to have some bias towards waiting until post-merge to see what happens with the token value. We don’t have any need for these funds immediately and can afford to wait a little if we think value will increase. But generally supportive of selling this within next few months when the community agrees LDO is fairly / over valued.

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This topic was automatically closed after 7 days. New replies are no longer allowed.

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This proposal has been transitioned to a Snapshot vote to determine how if members would like to use Nexus Treasury funds to buyback wNXM below book value.

After an open comment, review period, the choices presented in the Snapshot vote are:

  • Yes, buyback $wnxm
  • No

You can vote on the Snapshot proposal from 26 September at 5:55pm EST / 9:55pm UTC to 2 October at 6:00am EST / 10:00am UTC.

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$Gal seems to be illiquid on dex, but liquid on cex, so ideally the multisig just puts in a $wnxm buy with $gal at ~5% lower than market price and some bots will fill it via cex<>dex arb.

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updated proposal, as the first had too long of a duration: Snapshot

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The LDO holdings have been used to execute the wNXM buyback!

After members voted to approve the Snapshot proposal, the LDO holdings in the Nexus Treasury were used to buyback wNXM below book value.

:money_with_wings: Total LDO sold: 107,367.47
:moneybag: Total wNXM acquired: 8,494.231
:books: Book value of acquired wNXM: 192.71 ETH

Thanks to @vincentj for starting this discussion and working to turn this proposal into reality! Appreciate all of your contributions, Vincent :turtle:

The GAL holdings will be used to buyback wNXM as well. Once execution has been sorted, I’ll post an update.

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Awesome, think easiest as proposed would be creating a limit order to buy $wnxm with $gal say 5% below current market price, then some cex liquidity should be able to fill it