Proponent: KSM Collective on krievo
Request: $300,000 + 10% volatilty buffer, excess will be returned.
Total USD: $330,000
Total KSM: 9706 (EMA7 $34)
Beneficiary: KSM Society organisation on krievo, sovereign account on Kusama relay chain.
Address: Ftuq9bHvQb5NiU5JA7q79fxYn9FVBeRjNBHL3RH5raN9qck
Members: 10 members from across the ecosystem with more to add.
Representation: Virto, W3F, ChaosDAO, decent, Helikon, Lucky Friday.
Governance: 1 member 1 vote, 30% minimum support
LP fees: Retained by KSM Collective (KSM) and Brale (dUSD).
Contact: KSM society public matrix
Proposal Overview
Related: Brale integration fee proposal
Objective: Use treasury funds to seed an initial liquidity pool for KSM and dUSD on AssetHub
Rationale: The pool will be used to kickstart dUSD adoption while simultaneously strengthening Kusama’s DeFi ecosystem and generating fees for KSM Collective.
Match commitment: Brale has committed an initial $300,000 in dUSD to match the requested KSM allocation.
First usage: Exchange of Brale’s $125k fee from KSM to dUSD with the beneficiary being the Decent Partners collective which is governed by initial membership of organisations - decent, Brale, Virto and KSM collective.
Alignment with Treasury Goals
This proposal aligns with Kusama’s goals of fostering ecosystem growth, improving asset liquidity, and enhancing user experience through decentralised financial solutions.
Mechanism
- Create a KSM/dUSD pool using the Asset Conversion Pallet.
- Treasury spend of KSM to KSM Society
- Pair $300,000 worth of KSM with dUSD on a 1:1 value basis.
Launch phase
- Facilitate basic exchange between KSM and dUSD.
- Provide price stability for ecosystem participants.
- Initial exchange will be to enable $125k KSM integration fee → dUSD
- This dUSD will then be used as loans to new collectives recouped against future revenues.
Incentive Design
- There is a 0.3% fee for swapping tokens on Asset Conversion Pallet.
- This fee is split by liquidity providers proportional to their contribution to liquidity reserves.
- Fees will be paid back to LPs KSM collective and Brale.
Governance process
Funds will be repaid to the treasury as/when required.
Implementation timeline
- Phase 1: Governance approval and fund allocation.
- Phase 2: Setup and configuration of the liquidity pool on the Asset Conversion Pallet.
- Phase 3: Launch and monitoring, with reports on key performance metrics as pool develops.
- Phase 4: Return to treasury or request top up of incentive.
Expected Outcomes
- Kickstart transaction volume and liquidity for KSM and dUSD.
- Enable treasury funds to be used for stablecoin loans
- Unlock new innovation opportunities for collectives.