Optimal Liquidity & Growing Polygon
Currently Klima’s liquidity is dormant and not maximizing its full potential. Satin Exchange has created a truly unique flywheel for liquidity that allows for sustainable emissions by utilizing their flagship stable indexcoin, $CASH. This allows for greater capital efficiency and additional revenue streams compared to other Solidly-style AMMs. It’s so promising that most of the major polygon protocols are participating, ie: Beefy, Stader, LiFi, QiDAO, Lido. Klima should follow suit.
Maximizing Klima’s Liquidity
As a partnered pool, Klima would be entitled to
25% of the transaction fees generated from a Klima-$CASH pair.
These fees will go to the Klima treasury.
Auto-bribes for $CASH LPs (60% of $CASH rebase)
This will help generate bribes for the pool through the CASH rebase, resulting in votes for emissions. With attractive APRs, more users will LP, deepening liquidity and boosting revenue for POL as well as demand for KLIMA.
Boosted yields thanks to the $CASH yield in the pool (30% of $CASH rebase)
Claimable stable rewards in addition to the traditional emissions incentives. This is an incentive not seen on other DEXs.
Proposal to deploy POL
In order to maximize the capital efficiency of the KlimaDAO treasury and catalyze future growth in the Polygon ecosystem, the DAO should convert the treasury’s KLIMA-USDC liquidity that is currently deployed on SushiSwap, to a KLIMA-$CASH LP on the Satin Exchange.
Proposed Capital Allocation
From KLIMA-USDC currently deployed on SushiSwap ($3.8M): convert 100% to a Klima-$CASH pair and close the position on Sushi.
Conservative projections on $4m POL deployment:
$8.3k in $CASH auto bribes going to Klima pool per month
$4k in claimable $CASH rebase rewards for protocol
The $8.3k in bribes is estimated to attract $400k in emissions per year
KLIMA-$CASH LP on Satin Exchange
Estimated APR 13-15%:
10% APR from emissions
2% APR from the $CASH rebase
1-3% APR from trading fees
By moving KLIMA-USDC liquidity to Satin Exchange, Klima's POL could realistically attain an APR of your pool at over 15% which would be 6x your current yield with SushiSwap.
Check out their documentation below for more details on the $CASH token, and Satin Exchange’s economic flywheel.
Driving value into the KlimaDAO/Polygon ecosystem
This is an incredible opportunity to join the top protocols in bringing a new wave of DeFi hype to Polygon. Attracting more users, partnerships, and most importantly, safely boosting returns on Klima’s LP pairs.
By partnering with Polygon legends, it creates camaraderie amongst strong allies, and the ability to generate smart money returns on an inactive treasury.
Satin is already helping Klima push forward the on-chain carbon narrative by integrating our optional offsetting function for all DEX transactions. By aligning ourselves with the rest of the Polygon community, we can develop long term friendships to help one another reach our goals.