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proposal 1: buy moin and usdc, and open a moin/usdc pool

· the moin team

Moin! The moin dao has put up its first proposal, and the vote is open until Wednesday, October 14, 21:48 UTC. Proposal 1 puts 5 SOL from the treasury into a new MOIN/USDC pool on Meteora that the dao itself owns. This post has every step, number and risk. If it passes, its transactions run on Solana exactly as written, step by step, and nobody's wallet ever holds the SOL.

New to the dao? The big picture, in plain words: how we got here, why this pool matters, how staking would work, and what's next.

The numbers below are from October 11, 20:25 UTC, when the proposal's transactions were built. The proposal fixes them, and the dao page shows the same ones.

at a glance

  • What it spends: 5 SOL, half buying MOIN and half buying USDC. With 7.88 SOL in the treasury today, 5 SOL goes into the buys and, after the rent for the accounts this creates, 2.70 SOL, about a third, stays as the dao's reserve.
  • What the dao gets: a new MOIN/USDC pool on Meteora that it owns, which takes its trading fees in USDC, the first thing the dao owns that can earn on its own. None of this is a promised return.
  • The vote: from Sunday, October 11, 21:48 UTC to Wednesday, October 14, 21:48 UTC. If it passes, the pool goes live on Wednesday, October 14 (UTC).
  • How to vote: on the dao page, with the SOL your drops brought the dao.

what it does

  1. Buys MOIN. 2.5 SOL buys MOIN on PumpSwap, MOIN's main pool, in two buys of 1.25 SOL. At today's price that's about 1,267,000 MOIN.
  2. Buys USDC. 2.5 SOL buys USDC on Raydium. At today's price that's about 277.29 USDC.
  3. Opens a new MOIN/USDC pool on Meteora and adds the dao's MOIN and USDC to it, spread from about half to about twice MOIN's price when the pool opens. The pool takes every trading fee in USDC.

The dao's place in the pool belongs to its treasury, the same account that holds its SOL: only a passed proposal can collect its fees, take the MOIN and USDC back out, or close it.

what stays: the reserve

This puts 5 SOL into the pool now, so the pool exists and can start earning. About a third of the treasury stays as the dao's reserve: 2.70 SOL. The team won't propose paying it out, and every payout it proposes checks on Solana that the treasury keeps at least that much: if it wouldn't, the payout waits. As drops come in, the reserve grows back toward half of the treasury. What holders vote for next, like the pfp drop proposal (next week) and rewards for stakers (an upcoming proposal), is paid from the drops that come in on top of it.

Why keep a reserve: MOIN can move 40% in a day, and a pool in MOIN moves with it. If MOIN's price halved, the pool would be worth about 0.6 of what went in, about $305 of the $508 this puts in, and at this month's low, 79% under its high, about a quarter, about $127. The reserve stays in SOL, out of the pool, so a bad stretch for the pool can't reach it. Putting 5 SOL in rather than half the treasury means more fees if trading comes, and more to lose if MOIN falls, both in proportion to the size.

how it runs on solana

The proposal carries 10 transactions, signed by the dao's treasury through the governance program. Once it passes, the keeper, the wallet that also sweeps drops, carries them out in order as their checks pass; anyone else can too, and nobody can change what was voted:

  1. open the treasury's token accounts for wrapped SOL, MOIN and USDC
  2. wrap 2.5 SOL and swap it for USDC on Raydium
  3. once that USDC is in the treasury, wrap 2.5 SOL for the MOIN buys
  4. buy MOIN on PumpSwap with 1.25 SOL
  5. buy MOIN on PumpSwap with 1.25 SOL
  6. create the MOIN/USDC pool on Meteora
  7. create the pool's storage for its lower price steps
  8. create the pool's storage for its upper price steps
  9. create the dao's position in the pool
  10. add the MOIN and USDC

Apart from the trading fees PumpSwap and Raydium take, nothing in it sends SOL, MOIN or USDC to anyone. Each step has its own limits:

  • Each MOIN buy needs at least 90% of the MOIN it would get at the price when the plan was built, and the USDC buy at least 95% of its quote. If a buy can't get that, it fails, nothing is spent, and it can be tried again later.
  • The wrap for the MOIN buys waits until the USDC buy has delivered.
  • Creating the dao's position (step 9) waits while SOL's dollar price has moved more than 10% since the plan was built.
  • Adding to the pool only works while MOIN's price on PumpSwap stays between about 17% below and 20% above its price when the plan was built, and while the new pool still opens where planned. A small check program, Lighthouse, does the price checks; it can't move funds, and its current version hasn't had an independent audit.

Each step either works or fails without changing anything. We rehearsed all of it on copies of the real programs and accounts.

the pool

  • Meteora DLMM, MOIN/USDC. The pool's price moves in steps of 2%. The dao's liquidity covers 70 steps, from about half to about twice the opening price: at today's price, 0.000108 to 0.000425 USDC per MOIN, the prices of its lowest and highest steps, as the dao page shows them.
  • What goes in: the minimum the buys must deliver, about 1,140,310 MOIN and about 263.42 USDC at today's numbers. Anything the buys get above that stays in the treasury.
  • The fee: every trade through the pool pays 2%, and more while MOIN's price moves fast, up to 8.75%. Meteora keeps 10% of it, and the dao gets the other 90% while it's the pool's only provider.

what the fees are, and aren't

  • They're all USDC. Every fee is taken in USDC, whichever way the trade goes, never in MOIN or SOL. So a fee, once taken, doesn't rise or fall with MOIN's price. How many fees come in still depends on trading, and nobody knows how much that will be.
  • They stay in the pool until the dao collects them, each collection a proposal of its own.
  • They come mostly from arbitrage. PumpSwap charges about 1.15% on MOIN at today's market cap, 0.9% of it the creator fee, and pump.fun lowers it as the coin grows. This pool charges 2%, so apps like Jupiter keep sending everyday trades to PumpSwap, on purpose: the creator fee pays holders' drops, which fund this dao. What this pool gets is mostly bots closing price gaps, so it follows MOIN's main pool rather than giving MOIN a separate price.

matching this post to the dao page

The dao page spells out every step in plain words. These are the figures to check there, from October 11, 20:25 UTC, like the rest of this post:

  • Step 6, the pool's opening price: about 0.00021268 USDC per MOIN (bin -427).
  • Step 9, SOL's band: SOL between $99.89 and $122.09 on Orca's SOL/USDC pool.
  • Step 10, MOIN's band: the PumpSwap pool holding between about 111.9 million and 134.3 million MOIN. The less MOIN that pool holds, the higher MOIN's price, so that's MOIN's price between about 17% below and 20% above where it was when the plan was built.

the cost

  • About 0.18 SOL of rent for the accounts this creates; 0.04 SOL of it comes back if the dao closes its position one day.
  • Trading fees: about 1.15% on the PumpSwap buys at today's market cap, about 0.029 SOL on the 2.5 SOL of MOIN buys, and 0.25% on Raydium, about 0.0063 SOL.
  • About 0.04 SOL from the team's wallet to put the proposal on Solana, not refunded.
  • No drops on the dao's MOIN. pump.fun doesn't pay drops to addresses a program derives for itself, like the dao's treasury and the pool's accounts.

risks

  • Price moves (impermanent loss). The pool sells MOIN as it rises and buys as it falls, so when MOIN runs far in one direction the dao ends up behind just holding, and the fees may or may not make up for it. We replayed MOIN's real prices through a simple model of this pool holding what this proposal puts in, about $508, with bots trading every gap worth trading. Over the 7 days to October 10, while MOIN more than doubled: fees about $73, but about $108 behind overall. Over the 11 days from September 28, with MOIN swinging and ending 22% lower: fees about $91, about $80 ahead overall. Those fees are an upper bound, not an expectation: Meteora's MOIN/SOL pool, with the same 2% fee, earned only 6 to 8% of what such a model predicts. Over a year, our model's middle estimate is $7 to $17 a week in fees. That's what past prices and a model say, not a forecast.
  • Outside the range. Above about twice or below about half the opening price, the dao's liquidity is all USDC or all MOIN and earns nothing until the price comes back.
  • Price moves before the steps run. If prices moved since the plan was built, the first trades bring the new pool to the market price at the dao's expense, about 1.5% of its value if MOIN moved the full 20%. A buy that can't run is tried again; if the price never comes back, the dao keeps what it bought until a later proposal decides.
  • Someone could get in the way of the pool's setup by creating or moving the pool first. The team has a tested script that puts an empty pool back and finishes the steps exactly as voted; if someone has already added liquidity, it takes a new proposal.
  • Smart contracts. Meteora, PumpSwap, Raydium, SPL Governance and Lighthouse: a bug in any of them, or a change by the teams that can update them, could cost the dao what it has there. The vault program that counts the votes hasn't had an independent security audit yet.

the timeline

  1. Sunday, October 11, 21:48 UTC: the team put the proposal up, with the numbers from 20:25 UTC that day.
  2. Voting: 3 days, until Wednesday, October 14, 21:48 UTC. The dao page shows the exact end.
  3. When voting ends: the votes are counted, and about 20 minutes later the keeper carries out the 10 steps, in order, while the prices are still within their limits. If it passes, the pool is live on Wednesday, October 14 (UTC).
  4. Receipts: every transaction, the pool and the dao's position, posted here and on X and Telegram.

how to vote

On the dao page, with the SOL your drops brought the dao, until Wednesday, October 14, 21:48 UTC. It passes when votes worth at least 10% of all votes say yes, and yes beats no. Don't have votes yet? Redirect your drops: every SOL they bring the dao is a vote that stays yours. Holders of at least 100 MOIN, counting their redirect account, can comment on the proposal's page, linked from the dao page.

what the team can and can't do

The team still holds three keys that matter: the vault program's upgrade authority, the realm authority that sets the dao's rules, and the only wallet that can propose. Any use of them would be public on Solana, but for now it rests on trust. The plan is to hand the dao's rules to the dao itself. Who can do what lists every key, and the FAQ answers who can spend the treasury.

Even so, the treasury only moves through a proposal that passes a vote, and nobody can change this proposal once its vote opens.

Nothing here is financial advice. Crypto is risky, memecoins especially: never put in more than you can afford to lose.

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