SIFU and myself have used Treasury Funds to buy back wMEMO tokens as previous Treasury Managers. However, it has been more than two months since the last buyback trades were done. Since then, the price of wMEMO has fallen well below the risk free value “RFV”. During my time, I had used Bastion’s Defi Execution Bots to help accumulate wMEMO. I would propose to continue to use those bots to help with seamless execution.
I would propose that 500,000 USDC.e would be sent to a EOM wallet created by Bastion to be executed into wMEMO. Once wMEMO of such amount is executed, the wMEMO will be sent back to the treasury wallet. The wMEMO can be held as Treasury wMEMO or sent to the 0x…dead wallet to be burned.
Limits: I would suggest a original buy level limit of 10% below the Net Backing (Exclusive of BSGG, which is now smaller anyway) and then adjust limits as per the Treasury Council.
Fees: Creating and maintaining bots are not free, and I would suggest at 0.15% fee to execute such trades. Further is a nominal amount of Avax to cover the buybacks.
Alternative Methods: Another method is to take advantage of the ERC20 wMEMO/USDC inventory and migrate the pool to UNISWAP V3 and create a range AMM, thus allowing arbitrage mechanisms between Avax and ERC20 to stablize the price at higher levels.
I don’t care what method WL uses, just get the price to rationalize to near or hopefully above backing.