GP 18: Remove excess inventory on Polygon

The proposal has been confirmed and executed:

• Transaction #1 on Polygon

• Transaction #2 on Polygon

Proposal objective

Continue reduction of BOB inventory following the successful implementation of GP #16 and GP #17 for reduction on various chains. This proposal will decrease BOB inventory on Polygon.

• Proposal on forum -> https://forum.zkbob.com/t/proposal-to-remove-excess-bob-inventory-on-polygon/43

Proposal Details

Following the actions in this proposal, overall total supply of BOB will be ~5M. This proposal decreases the total supply by -10.5.m BOB, resulting in a reduction from 15.5m → 5m.

Polygon (11.5m → 1m)

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

2. Deallocate 5,500,000 BOB (6,500,000 BOB → 1,000,000 BOB) from BOB/USDC 0.01% inventory position on Uniswap V3

Proposal breakdown

Polygon

Below transactions use delegatecall to the 0xbfF0020638011357315302727eD55C5193a95F7b to efficiently faciliate complex inventory management process.

The first transaction #35 in the Safe on Polygon contains the following sequence of actions:

1. Remove and burn all excess BOB from BobSwap

2. Withdraw ~84.6% (11/13) (~5,500,000 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

Transaction #36 in the Safe on Polygon 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.

Additional verification

1. Check the code of https://polygonscan.com/address/0xbfF0020638011357315302727eD55C5193a95F7b#code

2. Check token transfers in Tenderly simulation:

   1. Polygon #35

   2. Polygon #36

3. Check the following script with safe contract execution - https://gist.github.com/k1rill-fedoseev/2114131418142793c70bbb1a119b40f7

   1. forge test --match-path ./script/scripts/VerifySafeTx_Gov42.t.sol --ffi -vvvv

   2. Make sure jq CLI is installed