Purpose
This proposal seeks approval to migrate all Network-Owned Liquidity (NOL) to the new infrastructure. Rather than requiring a separate network vote each time liquidity is moved, this single proposal grants authority for the full migration process to be executed in phases.
Approach
- Escrow: The entire NOL (insert figure here) will first be escrowed.
- Phased Migration: Liquidity will then be moved gradually into the new infrastructure.
- Initial Migration: A larger first migration will ensure there is sufficient liquidity in the new infrastructure for partners to begin using it immediately.
- Ongoing Migration: After the initial cut-over, additional migrations will continue in batches. The size and timing of each batch will be decided based on liquidity needs, partner adoption, and market conditions, until the full NOL has been transferred.
Rationale
- One-Time Approval: Avoids repeated network votes for every tranche of liquidity moved.
- Partner Cut-Over: Ensures there is sufficient liquidity in the new infrastructure for key partners like Balanced to switch swaps to the new system.
- Controlled Risk: Migration is phased to reduce risk and maintain balance between old and new infrastructure during the transition.
Scope
- Approval to escrow and migrate the entire NOL amount.
- Authority to move liquidity in controlled tranches until migration is complete.
- Liquidity movements to be transparent and reported as part of standard operations.
Expected Outcome
- Smooth transition of liquidity to the new infrastructure.
- Immediate partner ability to use new infrastructure after the initial migration.
- Faster, safer migration without the delays of repeated governance votes.