[Exchange Management] Early Q2 Ref Token Buy Back

Tokens
1

Proposal:
To execute the protocol revenue REF token market buy back early than its quarterly schedule.

Rationale:
Problem:
The market has hit every of our community members hard, DeFi protocols in general have tanked in TVL and token price over the course of the past 30 days.
Inevitably, there was also a strong impact to REF token volatility, dropped 79.2% from $2.83 on 18th April to $0.59 on 18th May.

However, statistically Ref is growing:

  1. Ref.finance was 1 out 2 DEXes among top 30 largest DEXes by TVL, that had a positive TVL change in the last 30 days
  2. Ref’s trading volume 4x compared to the corresponding period in last quarter, submitting $1.79B trading volume since the beginning of Q2.
  3. Ref is currently the main DEX for USN, consolidated its leading position in the NEAR DeFi landscape

Hence, we believe that the market downturn had an amplified impact on REF token’s recent volatility, hence we propose to:

  1. ask DAO to vote to collect protocol owned revenue in this quarter early
  2. execute REF token market buy back accordingly to the market condition

#wagmi

14 Likes
2

DAO Proposal #177

2 Likes
3

Excellent proposal that has my full support.

An extra aspect that may be worth mentioning is that it is within the eventual scope of work that the token buy backs would occur ‘automatically’. I am not well versed on the technical implementation, but reducing the timeframe between the time when the fee is collected, its conversion to REF and distribution to xREF holders is optimal. Namely, we aren’t introducing anything out of the ordinary here.

As veRUST mentioned, the quarterly model has served us well until now. However, given the extreme market conditions we are experiencing, it should be obvious to everyone that buying back REF with the fees that have already been occurred and are destined to buy REF is an obvious move.

1 Like