Background

Kusama Treasury has granted Karura 22k (20k as incentive grant and 2k as aUSD liquidity grant) KSM used for boostrapping 3-pool (aUSD-USDT-USDC) powwered by the Taiga protocol deployed on Karura. This grant is used to support

• bootstrap Kusama-native decentralized stablecoin aUSD
• bootstrap Kusama-native USDT on Statemine parachain
• bring USDC liquidity from Ethereum to Karura/Kusama via Wormhole bridge

For more details of the proposal, please see here and here

Proposal

Content

1. Set up a dedicated keyless vault (namely the Grant Vault hereafter) on Karura to receive 22k KSM sent from Kusama Relay chain
   • Grant Vault address: ogexCmX6pBvvjvwe6VnuwHAM7cyNp5birY4RuzJ8qCQCw89
2. The Grant Vault will be managed by on-chain governance.
3. Set up a temporary LKSM/taiKSM Mint Proxy account, that will subsequently be used to split the 20k KSM roughly 50% as LKSM and 50% as taiKSM (synthetic KSM made from LKSM-KSM). TheLKSM/taiKSM Mint Proxy will be destroyed after completing the operations, and only Grant Vault can transfer the funds via governance

• LKSM/taiKSM Mint Proxy address: pkGemTHxxdkg9inXsLzi8dVcRJXNbaYTNHAVQzGk9XcYjYN

6. Set up an aUSD Vault Management Proxy account, that will subsequently be used to generate aUSD liquidity from the 2k KSM, and manage the positions. The aUSD Vault Management Proxy can only perform relevant aUSD vault management functions

• aUSD Vault Management Proxy address: qqtn8NAj74sX5HRLWs6C84LadAFw3oVTxy7Ao2dmoCK2kCF

7. Follow-on proposals will release the funds in 12 tranches over 12-month period to Taiga protocol, who will be responsible to distribute them for the 3-pool LP participants.

Refer to the 3-pool program Proposal#2 for more details.

Proposal Call

0x0302080c02001111111111111111111111111111111111111111111111111111111111111111008200000f29e2284e00000000000000000003030001111111111111111111111111111111111111111111111111111111111111111103020c05017095491dc941e21b9269fe67b322311df5daafd75f0bf8868afd8fa828b06329070000000005017095491dc941e21b9269fe67b322311df5daafd75f0bf8868afd8fa828b0632905000000000501400f360c98ee8df02f3addc462452f19813c080d077b9777ef8843ea49c2343d0000000000

Referendum

[https://karura.subscan.io/referenda/54]https://karura.subscan.io/referenda/54
[https://karura.subsquare.io/democracy/referendum/54]https://karura.subsquare.io/democracy/referendum/54