Simple Summary
This proposal suggests implementing a ladder buy to purchase ETH using limit orders with specific price levels and order sizes, leveraging the 1inch API v5 (Pathfinder) and the 1inch limit order protocol.
Abstract
This 1IP proposes the integration of a buy strategy to purchase ETH by executing ladder limit buy orders at price levels of $800, $1000, $1200, and $1400 USD, each with a fixed order size of 250,000 USDC. This approach will utilise the advanced 1inch API v5 (Pathfinder) to discover and route trades across multiple protocols and market depths, ensuring optimal execution. Additionally, the proposal leverages the 1inch limit order protocol, utilising its flexibility and gas efficiency to execute the orders.
Motivation
This proposal aims to diversify the 1inchDAO treasury by implementing a buy strategy to purchase ETH, showcasing the potential of the 1inch protocol for other DAOs to execute similar swaps. The ladder limit order approach reduces the impact of short-term price fluctuations and allows for more controlled exposure to ETH. By utilizing the 1inch API v5, the protocol can achieve the best possible rates through efficient pathfinding and multi-protocol routing.
Specification
The proposal outlines the execution of ladder limit buy orders for ETH at specific price levels ($800, $1000, $1200, $1400) with a consistent order size of 250,000 USDC. These orders will be executed using the 1inch API v5 (Pathfinder), which leverages its pathfinding algorithm to discover optimal routes across various protocols and market depths. The 1inch limit order protocol will be used for order execution, providing flexibility and gas efficiency.
Rationale
This approach allows the 1inchDAO treasury to strategically accumulate ETH while minimising the impact of market volatility. The use of laddered limit orders ensures that purchases are made at different price levels, reducing the risk of buying all at once at a suboptimal price. The integration of the 1inch API v5 (Pathfinder) and the 1inch limit order protocol showcases the protocol’s cutting-edge capabilities in achieving optimal trade execution and efficient order placement.
Considerations
- Treasury Implications: This proposal impacts the 1inchDAO treasury by diversifying it into ETH. It might involve costs related to transaction fees and potential revenue generation.
- Protocol Showcase: This proposal demonstrates the robustness and capabilities of the 1inch protocol, paving the way for other DAOs to execute similar strategies.
By implementing this proposal, the 1inch Network showcases its ability to execute complex trading strategies while utilizing its advanced tools and protocols. This not only strengthens the 1inch ecosystem but also sets a precedent for other DAOs to optimize their treasury management using the 1inch protocol.