# GP 16: Remove excess inventory on Arbitrum and BNB Smart Chain

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The proposal has been confirmed and executed: 

* [BNB transaction 1](https://bscscan.com/tx/0xe128c2a02b3b65c7575b7ad1de930ed86b55db9b8f81f17894ba913d6466ac1e)
* [BNB transaction 2](https://bscscan.com/tx/0xaee89a2d85a81509dfe059ee02a444d8d1c99163f49259e24b5b76c21cd59038)
* [Arbitrum transaction 1](https://arbiscan.io/tx/0xcaee0e3f330c0ff2e7b6ef28c130fda98df25291cef57c9bb12b48e026212677)
* [Arbitrum transaction 2](https://arbiscan.io/tx/0x844b07b3d3741b9e2f96ee31137f04bfaec790558f9de73e109d2e3d50f294d3)
  {% endhint %}

## Proposal objective

In [GP7](https://bob-docs.zkbob.com/bob-dao/governance/protocol-governance/gp-7-increase-multi-chain-inventory-and-update-bob-swap), 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.

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**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.
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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 [presented in the forum for community feedback](https://forum.zkbob.com/t/proposal-to-reduce-size-of-the-inventory-pools-for-bob/31). 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

The following  transactions use `delegatecall` to  [`0x4b8c0B14AA7CB5a7cFF3546415bBDCAcd7C75a2E`](https://bscscan.com/address/0x4b8c0B14AA7CB5a7cFF3546415bBDCAcd7C75a2E) to efficiently facilitate the complex inventory management process.

The first transaction [#10](https://app.safe.global/transactions/tx?safe=bnb:0xd4a3D9Ca00fa1fD8833D560F9217458E61c446d8\&id=multisig_0xd4a3D9Ca00fa1fD8833D560F9217458E61c446d8_0xf10be5c6baef015772c7740ee10ec1bff1dab008ef9ef263f15d8d7daad2bd36) in the Safe on BNB Chain contains the following sequence of actions:

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**

The second transaction [#11](https://app.safe.global/transactions/tx?safe=bnb:0xd4a3D9Ca00fa1fD8833D560F9217458E61c446d8\&id=multisig_0xd4a3D9Ca00fa1fD8833D560F9217458E61c446d8_0x3b209cf214b1c83bc115f72499a813b147c8c1ce3085fa3a25099fe23aa519d2) in the Safe on BNB Chain contains the following sequence of actions:

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

The following transaction uses `delegatecall` to [`0x565FB4cbfF5C97479f3c6E3A69Df2BAde40FbE96`](https://arbiscan.io/address/0x565FB4cbfF5C97479f3c6E3A69Df2BAde40FbE96) to efficiently facilitate the complex inventory management process.

The first transaction [#2](https://app.safe.global/transactions/tx?safe=arb1:0xd4a3D9Ca00fa1fD8833D560F9217458E61c446d8\&id=multisig_0xd4a3D9Ca00fa1fD8833D560F9217458E61c446d8_0xfd82edf54ffa48f23aa42bcd249e9c6d2b22e33f788e3d51b985a1e07de51019) in the Safe on Arbitrum contains the following sequence of actions:

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**

The second transaction [#3](https://app.safe.global/transactions/tx?safe=arb1:0xd4a3D9Ca00fa1fD8833D560F9217458E61c446d8\&id=multisig_0xd4a3D9Ca00fa1fD8833D560F9217458E61c446d8_0xa2de1b5b4f038e26ba07f88e05e4ba900061b333e255bb7a2419d1ff35e63ef4) in the Safe on Arbitrum contains the following sequence of actions:

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.