Payment of Outstanding Front-End Fee in USDC for ApeBond Services
Goal of the Proposal
This proposal requests approval to use USDC from the Unlock Protocol DAO treasury to cover the outstanding balance of the 5% front-end fee owed to ApeBond for their bonding services. Initially, the DAO approved payment in ARB tokens, but due to price fluctuations, the amount transferred was insufficient to cover the full fee. This proposal seeks to settle the remaining balance.
Background and Original Payment
The original proposal approved a 5% front-end fee for ApeBond’s bonding services, amounting to $4,000 (calculated from an $80,000 bonding transaction). The DAO decided to use ARB tokens from the treasury instead of liquidating UP tokens or stablecoins.
At the time of execution, the DAO transferred 5,855 ARB at a conversion rate of $0.6832 per ARB, which was expected to cover the full $4,000 payment. However, due to delays in the governance process and market fluctuations, the price of ARB dropped, and the total value of the transfer was only $2,647.05, leaving an outstanding balance of ~$1,353.
Payment Details
- Original Payment Method: 5,855 ARB (~$4,000 at the time of the proposal creation)
- Amount Received in USD: $2,647.05
- Outstanding Balance: $1,353
- New Payment Method: USDC from the DAO treasury
- Recipient: ApeBond wallet (0x76E010758D2AE3B81973e2047cE70168CcaE2AbF)
Rationale
- Fulfillment of DAO Commitment: The DAO initially committed to covering the full fee, and this payment ensures that the agreement with ApeBond is honored.
- Mitigating Volatility Risks: Using USDC prevents further value loss due to ARB price fluctuations.
- Operational Efficiency: The payment will be made directly in stablecoins to avoid any additional governance delays or price risks.
Technical Implementation
The proposal executes a single transaction to transfer $1,353 USDC from the DAO treasury to ApeBond's wallet (0x76E010758D2AE3B81973e2047cE70168CcaE2AbF).
This ensures that the full 5% front-end fee for ApeBond’s bonding services is successfully covered.
For the original proposal, see: Snapshot Proposal