TIP-XXX: Accept Repayment of Volt Launch Liquidity Backstop

As part of the Volt Protocol launch, Tribe DAO provided 10,170,000 FEI in backstop liquidity. This was exchanged using an OTC escrow smart contract for 10m VOLT collateral, and no mint fee was charged to the Tribe DAO.

Volt Protocol is seeking to repay this loan as part of the ongoing derisking and PCV consolidation efforts within the Tribe DAO.

  • at first a large portion of the VOLT supply was scheduled for minting via Fuse, which would require outside liquidity unlike VOLT minted using stablecoins in the PSM. Now that there are no plans to mint VOLT as debt, Volt Protocol does not need such a large liquidity backstop
  • given the substantial impact to the Tribe DAO PCV in the Fuse exploit, it makes less sense for the Tribe DAO to have exposure equivalent to >10% of User FEI to Volt Protocol’s risk management.

Process:

Volt Protocol contributors will deploy an OTC Escrow contract that has Volt Protocol Multisig and the TribeDAO Timelock as the swap addresses.

The TribeDAO Timelock will approve the OTC Escrow contract to spend its Volt via a governance proposal.

The Volt Protocol Multisig will approve the OTC Escrow to spend its FEI.

The swap will execute and the loan will be repaid.

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This proposal will go to last call Monday, July 18, to allow for sufficient consideration since next week parts of the technical team will be offline and unavailable for discussion.

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This proposal has now been moved to last call. Please provide any outstanding comments or questions in the next 48hrs before it goes to Snapshot on Wednesday.

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This proposal is part of the TIP 119 Tribal Council proposal.

It is queued in the 4 day timelock for execution (Tribe DAO) .

NopeDAO veto link: Tally | Tribe NopeDAO Proposal

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