Use Wingriders DAO treasury funds to mint USDM to seed USDM/ADA pool

This proposal advocates for the Wingriders DAO to utilize its treasury funds to mint USDM, the first 1:1 fiat-backed stable coin on Cardano, and subsequently establish a 50/50 USDM/ADA liquidity pool within the Wingriders DEX.

This Proposal has several advantages such as: having the largest ADA/USDM Pool of all Cardano DEXs, Sustainable Yield Generation for the DAO, Greater Flexibility for Users, Enhanced Security and Stability through the fiat stable coin system. The Proposal also has its risks, such as Peg Stability, Liquidity (meaning how quick USDM can be redeemed for 1$) and solvency so that there is at least 1 US Dollar (or equivalent in assets) backing 1 USDM.

Regarding the implementation, a 3rd party would be minting USDM. Then, there would be a double signature transaction. The transaction would send ADA from Wingriders DAO wallet to the 3rd party’s wallet and send USDM from the 3rd party’s wallet to Wingriders DAO’s wallet. Then, both parties would review and provide the signature to the transaction. After that, the transaction body would be assembled with both signatures and submitted to the blockchain.

ADA would be swapped for USDM at the opening ADA/USD price of the day according to CoinGecko. Then, the equivalent ADA would be taken to provide liquidity on Wingriders. The resulting LP Tokens would be staked for farming rewards.

Suggested amounts are 60k Usdm with the equivalent amount of ada, this can be fleshed out better once community members have weighed in, the beauty of this is most of the guess work is over as Minswap Dao has been working with myself and others in the Cardano community in order to insure verything goes smoothly.

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very interesting! well done and thanks for putting this together for consideration.

Interesting notion. The purpose of the DAO is to foster, grow and maintain the platform according to the WRT holders suggestions, proposals, and voting. Engaging in FIAT currency transfers with community members or other projects, or using treasury funds to grow other projects’ liquidity kind of defies the purpose of treasury and additionally, the project lacks pieces of needed infrastructure.

However, it is in the interest of the platform to foster collaborations and liquidity of projects thus it remains that the USDM/ADA pool will be supported with farming rewards in WRTs.

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