Sirob Definitely swimming in a sea of trade-offs.
With pKLIMA minting & USDC used for LP, mainly
Pros:
- Capital efficient - treasury obtains KLIMA at 1BCT ea.
- KLIMA not staked, no APY loss for stakers
- Key liquidity rail bolstered
Cons:
- Reduction of KLIMA premium in BCT (dilution)
Great point with USDC as potential dilution moderation. USDC can definitely be used to moderate the dilution from pKLIMA mints, if we were to purchase BCT or MOSS OTC.
We will have the $1,467,902 after this liquidity exercise - so BCT/MOSS OTC buys are certainly on the table and would be great for reserves. It's mainly a question of timing and opportunity cost imo. USDC buying BCT or moss would be good for reserves, runway, and other QOL metrics - but we can also perform these acts any time. So main cons are losing the stockpile of liquid capital, and the opportunity cost of potentially using that USDC for liquidity or exchange listings.