Following the discussion re. handling of unclaimed ITAM rewards in the two thread below:
I would like to move the discussion forward to the next step in the process. Based on the feedback receives, below is the AlP I would like to propose. After discussion and feedback, this will be put to a vote by the community.
[Please refer to the threads above]
I propose 3 voting options below. The reason for option2 and option3 is that the liquidity for ITAM pool is low relative to our holding size. A large trade will cause a significant price impact. That being said, there is no guaranteed that there will be liquidity to trade out of ITAMCUBE in the future.
Option1.) Sell 100% ITAM into ALPACA. Allow for additional 12 months for claiming. Any unclaimed ALPACA after 12 months will be burned.
Option2.) Sell 50% ITAM into ALPACA. Convert 50% into ITAMCUBE. Allow for additional 12 months for claiming. Any unclaimed ALPACA will be burned. Any unclaimed ITAMCUBE will be swapped into ALPACA and burned.
Option3.) Convert 100% of ITAM into ITAMCUBE. Allow for additional 12 months for claiming. Any unclaimed ITAMCUBE after 12 months will be swapped into ALPACA and burned.
For option #1, what will be the selling strategy? Are we open to the idea of selling on a CEX?
If we want to go the DEX only route, selling everything all at once will result in a 50% price impact, we obviously do not want that. I think we need to discuss how much of a price impact we are willing to accept/how patient we can be in order to reduce price impact.
If selling on a CEX is accepted, we could convert all ITAM to ITAMCUBE and sell on MEXC. There is currently 4.59M USDT of daily volume on the ITAMCUBE/USDT pair. They allow withdrawals to BSC for a minimal fee (2 USDT).
Going the MEXC route is a little more involved for the core team but would result in the best possible outcome for the protocol.
I propose a fourth voting option:
Option4.) Convert 100% of ITAM into ITAMCUBE. Sell for USDT on MEXC. Convert USDT to ALPACA on BSC. Any unclaimed ALPACA after 12 months will be burned.
I looked at the orderbook on MEXC for ITAMCUBE. While the daily trading volume is high, the visible order book is not that deep and we are looking at 20% spread. I would like to make a slight adjustment to your option4 to also take advantage of the remaining available liquidity of ITAM on PancakeSwap.
Option4.) Convert 90% of ITAM into ITAMCUBE. Sell for USDT on MEXC. Convert USDT to ALPACA on BSC. Remaining 10% of ITAM will be converted to ALPACA using liquidity on PCS. Any unclaimed ALPACA after 12 months will be burned.