MantaDAO is proposing a $50k SOMM<>MNTA token swap with the Sommelier Community.

Each party will match the received token with another $50k of their own token in a BOW LP (the AMM built on top of FIN, Kujira’s orderbook DEX). This will result in $200k of SOMM/MNTA liquidity that will make SOMM tradable with limited price impact against a wide variety of assets (axlUSDC,USK, wETH, wBTC, ATOM, KUJI, etc.) thanks to MantaSwap’s multihop router. Half of the LP ($100k) will be owned by Sommelier Community Pool; the other half ($100k) will be owned by MantaDAO.

This will sustainably deepen liquidity for SOMM in the form of Protocol-Owned Liquidity, at zero cost for Sommelier, and without the need for any incentives.

This will also enable the Sommelier Community to diversify its treasury and generate a source of income in the form of trading profits from market-making activities.

As part of the deal, MantaDAO also commits to acquire $50k worth of yieldETH that will be matched with $50k worth of MNTA and deposited in a BOW LP, creating the first market for yieldETH in the Cosmos with $100k liquidity.

After the deal, ManatDAO will continue to look at building-up liquidity for Sommelier’s yield generating strategies on Kujira.

The recipient address is the Sommelier team's ops multisig.

The amounts of MNTA and SOMM for the token swap deal are calculated on 20d TWAP basis: https://docs.google.com/spreadsheets/d/181DKyByXR25LQQ2cUYkr4aB4Hwfyz9KrvsVpMGU_p00/edit#gid=0

The full text of the proposal: https://community.sommelier.finance/t/mutual-token-swap-between-sommelier-and-mantadao-in-order-to-build-liquidity-on-kujiras-fin-dex/1177