📜 LiquiFrens Proposal Framework

Important :exclamation: :exclamation: :exclamation: The LiquiFrens initiative is currently not active.

LiquiFrens Proposal Framework

Why do we need a proposal framework?

The framework ensures that all Liquifrens proposals can easily be understood and compared. Following the framework is necessary for your proposal to be included in the monthly voting round.

To ensure the framework is easy to understand, we’ve added a basic example proposal in italic along with each category.

0. Proposal title: number and asked LUSD budget

For easy navigation of the various proposals with different budgets, please include a unique number and a clear title including the budget.

LQIP-1 — Hire SixDegree Lab to produce a comprehensive Velodrome LUSD liquidity tracking dashboard [5K LUSD]

1. Goals

What are the main goals of the proposal? What are the expected benefits and impacts?

This proposal will provide precise and methodical tracking of key metrics related to LUSD liquidity on Optimism that are currently loosely tracked. This will attract more users for LP-ing: users can better refine parameters for the incentives as well as the provided liquidity.

Thanks to these tools, we expect to at least sustain the current liquidity levels on Optimism or even increase them.

2. Benefit & Impact

What are the benefits for the Liquity ecosystem? Why should LQTY holders support your proposal? How will success be measured?

First order effect: implementing this proposal would greatly reduce the time spent collecting and tracking LUSD-Optimism-related data and tremendously improve reporting accuracy. (Team)

Second-order effect: having streamlined access to precise data should help identify further opportunities and optimize the Velodrome strategy even more. (Team)

Third-order effect: this dashboard will also enable LUSD holders on Optimism to navigate the yield opportunities better. (Users)

3. Context

Highlight the current issue and how your proposal addresses it.

Liquity is highly active and successful on Optimism, thanks to optimized management of its Velodrome veVELO position. However, Liquity’s Optimism LUSD liquidity strategy is becoming increasingly more complex and harder to keep track of.

A customized dashboard incorporating Velodrome protocol level data and detailed and historical data on LUSD-related pools will significantly facilitate monitoring the liquidity strategies harnessed to measure their impact and cost-weighted effectiveness.

Now is a perfect time to address this as liquidity should densify even further on Optimism once/if Liquity OP grants is obtained.

4. Scope & Deliverables

Clearly define your proposal’s scope (=to be included) or out of scope, and the output to be delivered.

The Velodrome Liquity Dune Analytics dashboard will enable historical tracking and visualization of TVL, volume, and in/outflow on the LUSD/USDC, LUSD/sUSD, LUSD/MAI, LUSD/USD+, and LUSD/wETH pools. Two additional pools could be added later upon the Liquity team’s request.

5. Timeline

What happens if this proposal goes through? A high-level overview of the main steps required for its implementation.

  1. Jan. 2023: SixDegreeLab will ask TokenBrice or a similar subject matter expert to outline and review the data points required, their periodicity, and visual representation.
  2. Feb. 2023: Implementation of the dashboard by SixDegreeLab
  3. Mar.2023: SixDegreeLab improves the Dashboard based on the user feedback for the outlined scope above

6. Dependencies

Outline the third-party dependencies of your proposal. Is there any input or action that is needed beyond your influence?

TokenBrice, Liquity’s liquidity manager, will provide feedback on the dashboard’s early version to ensure the final deliverable honors the full scope.

7. Ask & Payment

Define the Ethereum wallet receiving the funding and additional information on its setup. Grants are usually paid out upon completion. However, if you need upfront payment to fulfill your project, you can ask for it: explain why it is needed clearly.
Grants are usually paid out in LUSD, but ETH-based grants are also possible. Please also state if you can output an invoice for the mission, which is preferable.

SixDegreeLab will be hired for the development of the dashboard; their ask is 5K LUSD to be sent to 0x----------------------------------------------------, a 3/5 Gnosis Safe Multisig controlled by members of the SixDegreeLab team. No upfront funding is required.

8. References & Useful Links

Include relevant context on your work, previous proposals you submitted, Twitter, GitHub, etc.

Annex and additional relevant information

How to write comprehensive and compelling proposals?

First and foremost, alignment with the community makes or kills a proposal. Thus, your best way to maximize success chances is to sync as much as possible with the LQTY community, present your project, understand and address the first hesitations, and iterate on it with the community until a strong alignment is reached.

Secondly, the form matters so much more than you think! No one wants to read unformatted approximative blurbs of text. Harness the formatting option offered by Markdown to make your proposal as easy to read and skim as possible. Feel free to use visual markdown editing software to that end: personally, I use and love Typora.


With that in mind, feel free to include visuals in your proposals too! You can directly copy and paste an image in the Discourse editor to include it in your posts, and it works with gifs too!

Proposal Framework Author(s) and version

  • This is the very first version of the Liquifrens Proposal Framework.
  • Proposal framework established by TokenBrice with input and reviews from the Liquity team.