Author: @Thomas

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1. Overview:

This is a sub-sip for SIP5.17 to request 5.4M additional SUMR to bring the initial protocol owned liquidity closer to a balanced position.

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2. Motivation:

As was outlined in the RFC and SIP5.17, the PoL position that will be deployed 24h after the transferability event has a targeted composition of:

• $100,000 USDC
• ~$100,000 USD worth of SUMR at deployment

The exact SUMR amount would be determined using the spot price after the initial price discovery period.

Now that we passed the very initial price discovery phase, the original 600k SUMR deposit to bootstrap the PoL is far from sufficient, and results in:

• $100,000 USDC
• ~$5,000 USD worth of SUMR

At current price we would need 11.9m SUMR for a 50/50 position, this looks like an unreasonable big SUMR amount, we therefore propose to use initially 6m SUMR (an additional 5.4M), this would result in an initial position of:

• $100,000 USDC
• ~$50,000 USD worth of SUMR

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3. Specification:

3.1 Amounts

We propose to fund the multisig with an additional 5.4M SUMR.

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4. Risk Assessment:

Since there is a 6 days voting time, we will start with the creating the initial position exactly 24 hours after the transferability event using the 100k USDC and initial 600k SUMR.

This will be a very unbalanced position (~95/5), but for now this is not a big risk as we start with a very broad range and currently there is a nice quantity of liquidity in the pool due to the Aero incentives.

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5. Voting:

If YES - Approve transfer of 5.4M SUMR to the PoL multisig; to add to the existing PoL position.

If NO - Do not transfer funds at this time; We continue with the initial 100,000 USDC and 600,000 SUMR PoL.