We propose providing liquidity for the KONG/ICP pool on KongSwap. Establishing this liquidity position will allow users to trade the KONG token efficiently with minimal slippage and ensure effective price discovery.
Liquidity Details
• Amount to Add:
• ICP: 35,000 ICP
• KONG: 30,085,617.02 KONG
The amount of KONG is based on the final price from the SNS sale, determined by the ratio of ICP raised to KONG tokens sold:
220,000,000 KONG / 255,936.25 ICP = 859.589 KONG/ICP
Implementation Plan
We would like to add_liquidity
to the KONG/ICP pair on KongSwap such that the treasury controls the LP position on Kongswap directly. This will involve executing the following 5 steps to create the LP position on KongSwap:
- call the
proposal swap_amount()
specifying token_0=KONG, amount_0=amount of KONG, token_1=ICP which will return amount_1=the amount of ICP we need to pass to the canister - Execute a
TransferSnsTreasuryFunds
proposal to sendamount_0 + gas (10_000)
to KongSwap - Execute a
TransferSnsTreasuryFunds
proposal to sendamount_1 + gas (10_000)
to KongSwap - Get the
block_id
for the transactions from step 2 and 3 - Execute a Generic proposal execute the
add_liquidity
function on KongSwap to create the KONG/ICP LP position.
Execution Strategy
Before making the Firs proposal we would like to make a test proposal that will create a minimal KONG/ICP LP position. After the successful test we’ll run the first proposal.
Since the size of the pool will exceed the weekly transfer limit of 300,000 XDR, we will implement this in two separate proposals:
- First Proposal (November 4–10):
• ICP: 20,000 ICP
• KONG: 17,191,781.16 KONG
- Second Proposal (November 11–17):
• ICP: 15,000 ICP
• KONG: 12,893,835.87 KONG
This phased approach is in line with the SNS treasury limits and also enables the Kong treasury to keep control over the treasury tokens at all times.