I would like to propose to use a part of Origin’s treasury as price support for $OGN via CoWSwap. We could also consider CEXs, however through CoWSwap the assets of the treasury could remain OUSD/OETH.
The buywalls would be set at fairly unrealistic prices, in case of flash crashes like the one that happenend on the 10th of Oct.
E.g.
The price of OGN is $0.05 > buywalls are set at the $0.01-$0.03 range.
Pros:
- Chance to buy OGN back at exceptionally low prices, thus improving the APY on locked OGN.
- More confidence for investors, knowing that the protocol has its own price support.
- Might make it less risky for people using leverage to long OGN.
Cons
- Requires team attention because the buywalls would have to be set manually each time the price of OGN moves a certain amount.
- A part of the treasury would be used to support the price of OGN, rather than applying buy pressure. However, if the treasury were to run dry, we could always make a new proposal to remove the buywalls and use these assets to buyback OGN at market levels.
Lastly, how much of the treasury should be used?
I think about 5-15% of the treasury would be a good amount to use as buywalls. This would be approximately $300k at the moment.
Please let me know your thoughts that I can consider before making an official Snapshot proposal.
Thanks for reading.