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        • GP 0: Increase SAFE membership
        • GP 1: Bob Swap beta testing infrastructure
        • GP 2: Upgrade Contracts to v1.0.0
        • GP 3: Enable Bob Swap for Public Use
        • GP 4: Increase Multisig & Upgrade BOB contract on all networks
        • GP 5: Enable Bob Swap on Ethereum Mainnet
        • GP 6: Upgrade zkBob to support direct deposits
        • GP 7: Increase Multi-chain Inventory and Update Bob Swap
        • GP 8: Extend pool limits for KYC'd users
        • GP 9: Deactivate Kyberswap inventory pairs [Emergency Measure]
        • GP 10: Reallocate previous Kyberswap inventory
        • GP 11: Add 24 hour timelock to BOB contract on Optimism
        • GP 12: Raise Polygon limits
        • GP 13: Launch BOB CDP
        • GP 14: Migrate BOB pool to USDC on Polygon
        • GP 15: KYB tiers on Optimism
        • GP 16: Remove excess inventory on Arbitrum and BNB Smart Chain
        • GP 17: Remove excess inventory on Optimism and Ethereum
        • GP 18: Remove excess inventory on Polygon
        • GP 19: Accrued Revenue Allocation
        • GP 20: Migrate BOB pool to USDC on Optimism
        • GP 21: BOB inventory reduction
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  • Proposal objective
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GP 16: Remove excess inventory on Arbitrum and BNB Smart Chain

PreviousGP 15: KYB tiers on OptimismNextGP 17: Remove excess inventory on Optimism and Ethereum

Last updated 1 year ago

The proposal has been confirmed and executed:

Proposal objective

In , BOB inventory was expanded across a number of chains. Since that deployment, usage analysis shows minimal traction and usage of BOB on the BNB Smart Chain and Arbitrum One network. To consolidate resources and shift focus from the inventory model to BOB CDP, we propose removing BOB inventory positions from Uniswap and BOBSwap on BNB Smart Chain and Arbitrum One.

Note: Any BOB in active circulation on either chain will continue to be backed 1:1 by USDC and can be removed/traded on Uniswap at any time.

This excess inventory removal will result in a smaller overall market cap for BOB, but will not impact stability or other factors related to the BOB stablecoin.

Proposal Details

This proposal was originally . All amounts are approximate and will vary slightly during execution. The proposal will result in a decrease of total supply of ~14m BOB (49.5m → 35.5m).

BNB Chain (9m → 1m)

  1. Deallocate 5,000,000 BOB (→ 0 BOB) from BobSwap

  2. Deallocate 1,500,000 BOB (→ 500,000 BOB) from BOB/USDC 0.01% inventory position on Uniswap V3

  3. Deallocate 1,500,000 BOB (→ 500,000 BOB) from BOB/USDT 0.01% inventory position on Uniswap V3

Arbitrum (7m → 1m)

  1. Deallocate 5,000,000 BOB (→ 0 BOB) from BobSwap

  2. Deallocate 1,000,000 BOB (→ 1,000,000 BOB) from BOB/USDC 0.01% inventory position on Uniswap V3.

Proposal Breakdown

BNB Chain

  1. Remove and burn all excess BOB from BobSwap

  2. Withdraw 75% (~1,500,000 BOB/USDC) of BOB/USDC 0.01% Uniswap V3 inventory LP with its fees

  3. Withdraw 75% (~1,500,000 BOB/USDC) of BOB/USDT 0.01% Uniswap V3 inventory LP with its fees

  4. Burn BOB obtained from inventory position principal

  5. Transfer USDC and USDT obtained from inventory position principal to BobSwap

  6. Disable BobSwap USDT→BOB and USDC→BOB BobSwap directions by setting swap fees to 100%

  7. Set zero fees for BOB→USDC and BOB→USDT BobSwap directions

  8. Claim BobSwap fees accumulated in USDC and USDT

  1. Remove and burn all excess BOB from BobSwap

The 2nd transaction is executed after all USDC and USDT collateral from BobSwap has beed redeemed, some time after the first transaction execution.

Arbitrum

  1. Remove and burn all excess BOB from BobSwap

  2. Withdraw 50% (~1,000,000 BOB/USDC) of BOB/USDC 0.01% Uniswap V3 inventory LP with its fees

  3. Burn BOB obtained from inventory position principal

  4. Transfer USDC obtained from inventory position principal to BobSwap

  5. Disable BobSwap USDT→BOB and USDC→BOB BobSwap directions by setting swap fees to 100%

  6. Set zero fees for BOB→USDC and BOB→USDT BobSwap directions

  7. Claim BobSwap fees accumulated in USDC and USDT

  1. Remove and burn all excess BOB from BobSwap

Second transaction shall be executed only once all USDC and USDT collateral from BobSwap has beed redeemed, some time after the first transaction execution.

The following transactions use delegatecall to to efficiently facilitate the complex inventory management process.

The first transaction in the Safe on BNB Chain contains the following sequence of actions:

The second transaction in the Safe on BNB Chain contains the following sequence of actions:

The following transaction uses delegatecall to to efficiently facilitate the complex inventory management process.

The first transaction in the Safe on Arbitrum contains the following sequence of actions:

The second transaction in the Safe on Arbitrum contains the following sequence of actions:

🧑‍🤝‍🧑
BNB transaction 1
BNB transaction 2
Arbitrum transaction 1
Arbitrum transaction 2
GP7
presented in the forum for community feedback
0x4b8c0B14AA7CB5a7cFF3546415bBDCAcd7C75a2E
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0x565FB4cbfF5C97479f3c6E3A69Df2BAde40FbE96
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