ProposalsProposal 320
ProposalsProposal 320
There’s been interest in diversifying Nouns DAO treasury, specifically stETH => rETH, and we have built a tool that’s tailor-made to help execute these trades: TWAMM. The trade will be executed completely on-chain, transparently with very low fees and minimal gas costs.
The first trade will be for $1M, and after that completes successfully, a larger $14M trade will be proposed.
TWAMM is a concept introduced by Paradigm in July 2021. "It works by breaking long-term orders into infinitely many infinitely small pieces and executing them against an embedded constant-product AMM smoothly over time."
An on-chain AMM protocol to enable large token swaps is essential to increase DeFi adoption and anti-fragility. Some interesting use cases for TWAMMs include treasury diversification, whale liquidations, peg maintenance, etc.
We have been researching and developing TWAMMs since November 2021 and recently launched our protocol: CronFi TWAMM. The code has been audited by SpearbitDAO, open-sourced, and verified on Etherscan. Considerable detail about the protocol is presented on the docs page.
sell 7_500 stETH for rETH in 100_000 blocks ~roughly 2 weeksdelegate to ensure the order is being filled at a reasonable price. In case the trade escapes a reasonable threshold, we will cancel the trade on behalf of the DAO, refunding proceeds and the remaining unsold portion of the order to the Nouns DAO wallet.Here are the alternatives and how they stack up against TWAMM. Note this isn’t a comprehensive list, but a short summary.
Here are the simulation results for the trade and expected returns. The initial trade is to show Nouns DAO the power of the protocol and ensure everything works as expected. This simulation is an approximation and results might vary based on liquidity, prices, volatility, etc. We will be monitoring the trade to ensure the trade fills won’t deviate drastically from the expected outcome.
NOTE: this is a full contract simulation between a Balancer pool and our contract, using a fixed wstETH:rETH price in the balancer pool, fixed gas units, and fixed USD exchange rates. The simulation is executed with the actual contracts, with certain parameters held constant to evaluate the effect of liquidity and arbitrage frequency on swap performance.
LPs make 1.537% ($1537) from fees in a week, if you’re interested in adding liquidity to the pool to earn fees, you can add liquidity here: wstETH <> rETH TWAMM Pool. Here’s how swap performance improves as liquidity and arbitrage frequency increase in the pool.
The real benefit is in the larger trade which does better than any on-chain solution and even Cowswap’s quotes. Additionally, LPs would make 1.545% ($21,626) from fees in a week
This proposal requires two on-chain proposals. The first will be a trial trade for $1M wstETH → rETH. The follow-up proposal will trade $14M wstETH → rETH.
Note: we’re wrapping more stETH than we are selling because the price fluctuates, we want to ensure the proposed amounts of wstETH are available to sell.
sell 500 wstETH for rETH in 50_400 blocks ~1 weeksell 7000 wstETH for rETH in 50_400 blocks ~ 1 week
There’s been interest in diversifying Nouns DAO treasury, specifically stETH => rETH, and we have built a tool that’s tailor-made to help execute these trades: TWAMM. The trade will be executed completely on-chain, transparently with very low fees and minimal gas costs.
The first trade will be for $1M, and after that completes successfully, a larger $14M trade will be proposed.
TWAMM is a concept introduced by Paradigm in July 2021. "It works by breaking long-term orders into infinitely many infinitely small pieces and executing them against an embedded constant-product AMM smoothly over time."
An on-chain AMM protocol to enable large token swaps is essential to increase DeFi adoption and anti-fragility. Some interesting use cases for TWAMMs include treasury diversification, whale liquidations, peg maintenance, etc.
We have been researching and developing TWAMMs since November 2021 and recently launched our protocol: CronFi TWAMM. The code has been audited by SpearbitDAO, open-sourced, and verified on Etherscan. Considerable detail about the protocol is presented on the docs page.
sell 7_500 stETH for rETH in 100_000 blocks ~roughly 2 weeksdelegate to ensure the order is being filled at a reasonable price. In case the trade escapes a reasonable threshold, we will cancel the trade on behalf of the DAO, refunding proceeds and the remaining unsold portion of the order to the Nouns DAO wallet.Here are the alternatives and how they stack up against TWAMM. Note this isn’t a comprehensive list, but a short summary.
Here are the simulation results for the trade and expected returns. The initial trade is to show Nouns DAO the power of the protocol and ensure everything works as expected. This simulation is an approximation and results might vary based on liquidity, prices, volatility, etc. We will be monitoring the trade to ensure the trade fills won’t deviate drastically from the expected outcome.
NOTE: this is a full contract simulation between a Balancer pool and our contract, using a fixed wstETH:rETH price in the balancer pool, fixed gas units, and fixed USD exchange rates. The simulation is executed with the actual contracts, with certain parameters held constant to evaluate the effect of liquidity and arbitrage frequency on swap performance.
LPs make 1.537% ($1537) from fees in a week, if you’re interested in adding liquidity to the pool to earn fees, you can add liquidity here: wstETH <> rETH TWAMM Pool. Here’s how swap performance improves as liquidity and arbitrage frequency increase in the pool.
The real benefit is in the larger trade which does better than any on-chain solution and even Cowswap’s quotes. Additionally, LPs would make 1.545% ($21,626) from fees in a week
This proposal requires two on-chain proposals. The first will be a trial trade for $1M wstETH → rETH. The follow-up proposal will trade $14M wstETH → rETH.
Note: we’re wrapping more stETH than we are selling because the price fluctuates, we want to ensure the proposed amounts of wstETH are available to sell.
sell 500 wstETH for rETH in 50_400 blocks ~1 weeksell 7000 wstETH for rETH in 50_400 blocks ~ 1 week