Proposal to change the INV Oracle
As part of a TWG motive, the majority of the treasury’s INV liquidity (INV/WETH and INV/DOLA) is to be migrated from Sushiswap to Uniswap V2. Initially Sushiswap was chosen and used as the main base for INV liquidity due to running liquidity mining programs for INV LPs with SUSHI token. However, now these programs have stopped, it is deemed more optimized for the majority of INV liquidity to be held on Uniswap instead. This is as Uniswap LPs receive 20% higher fee take (due to 0.3% trading fees going directly to LPs, rather than the 0.25% on Sushiswap) and get exposure to a far larger user base and sustained volume.
Currently, the INV custom oracle points at the INV-WETH pool on sushiswap and reads price data from there. This proposal will change it to start reading price data from the new INV-WETH pool on Uniswap V2.
The TWG will migrate roughly 50% of liquidity prior to this proposal executing, and then do the remaining 50% as this proposal executes. This is to mitigate risks associated with the migration. As DOLA borrowing is currently disabled on Frontier, the risks are already mostly reduced.
On-chain action:
- Update INV oracle feed to new Uni V2 oracle
- Update the LpFeed for Inv-Dola SLP to point to the Inv Feed