Protocol-owned liquidity on the Aragon App
What’s New
You can now use the Aragon App for protocol-owned liquidity! Create a liquidity pool for your governance token using dApp Connect, which makes it possible for DAOs to connect to external dApps like you would with a wallet. All actions are approved via your governance process, making it the most transparent and trustless way to create a liquidity pool for your governance token.
You can manage a DAO or multisig treasury on the Aragon App by connecting to external applications. This week we highlighted how to swap tokens using Jumper Exchange and how to earn yield with Ethena.
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Protocol-owned liquidity on the Aragon App
Liquidity pools make it possible for anyone to buy your token on the open market. Without a liquidity pool, your token is only accessible if a governance proposal to mint tokens to your wallet passes.
When your token is available to be purchased by anyone, that means that anyone can influence your governance. Keep this in mind when considering whether to create a liquidity pool or not.
There are two ways to create a liquidity pool for your DAO governance token using dApp Connect on the Aragon App:
A trusted external wallet creates the liquidity pool, and the DAO deposits the majority of the liquidity (easier, but introduces trust assumptions that token holders may not prefer).
Create a proposal from your DAO to create a liquidity pool, and the action is executed through the governance process (more complicated, but no trust assumptions, which token holders may like better).
We dive into all your options in the new guide. Check it out!
Highlights from the week
Swap tokens using Jumper Exchange
Aragon DAOs can easily swap tokens using Jumper Exchange.
Grow your treasury with yield from Ethena
Aragon DAOs can grow their treasury with yield from Ethena.
Source : Medium / May 17, 2024