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0xchihiro

@0xchihiro

Shower thought governance proposal idea. Currently nearly 1.4 million donut are sitting in the treasury doing nothing. I personally have been a strong proponent of the donut buy back but also recognize the necessity to acquire other tokens in order to help generate sources of revenue upon more halvings and the eventual tail emissions implementation. So I was thinking about ways in order to help combat this and allow donut to diversify and expand on asset collection while still increasing the holding of donut in the treasury. So with that my idea is the DAMM (donut AMM). A treasury owned secondary source of liquidity that moves liquidity to be centered around an average price with the goal of constantly accumulating more donut. It aims to split buy side and sell side liquidity so that the treasury never buys higher than its average price and never sells lower than its average price. Absorbing sells during downturns and taking advantage during run ups. Luckily a protocol that has an implementation (with a few modifications) already exists and has been audited and in production for several years. Need to look into some more technical details of what the best way to move liquidity around this average price would be, but would love general feedback on the idea itself and if it’s something the community is interested in.
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