Context: The initial protocol liquidity will mainly serve the purpose of price discovery for a few days before bonding/liquid-staking go live.
Proposal: Pre-mint 12k CNV to be paired with $1.2mil DAI.
- Number of pool: I prefer one pool which means no fragmentation for the price discovery period.
- Why DAI to start: most of our initial treasury is in DAI. As mentioned in Inverse Finance AMA, we will be only bonding with DAI (no Frax, no Dola, also note that a portion of the bonded DAI will be continuously "shutted" into DAI-CNV liquidity, more details to come soon) in the beginning to proof the concept of our smart bonding machine (magic number machine) before expanding to other bonding assets.
- Size: I think a $2.4mil liquidity pool is ample enough for the initial price discovery.
- Starting CNV price: $100. The current treasury backing per CNV in the circulating supply is ~$85 per CNV, my personal price target of the starting CNV price is ~$250 per CNV. As such, I think the $100 starting price is a reasonably conservative one.