Dear community,&#x20;



We want to get your feedback about an upcoming GOV proposal for a Treasury-loan for the purpose of increasing PEN liquidity.



### Background

The Pendulum community has highlighted liquidity issues for PEN across decentralized exchanges, which limit trading efficiency and user access. To address this, SatoshiPay has offered to enter a liquidity provider (LP) position on DEXes (for example on an isolated pool on Hydration).



### **Proposal**

We propose that the Pendulum treasury provides a loan of **5,000,000 PEN** tokens to support this initiative.

* **Loan size:** 5,000,000 PEN
* **Recipient:** A designated multisig wallet (address to be provided in the final governance motion, council-approved).
* **Duration:** 24 months
* **Repayment terms:**
  * Repaid in PEN tokens, or
  * At the equivalent of **USD $0.01 per PEN** (current market price) at the time of repayment.



### **Multisig Custody**

The multisig wallet will be managed by **members of the PEN council**. This ensures community oversight and avoids compliance risks tied to custody by a single entity.



### **Advantages for the Community**

* **Indirect liquidity benefits:** SatoshiPay’s LP activity strengthens order books, leading to smoother and less volatile trading.
* **Treasury protection:** Clear loan terms safeguard treasury assets and ensure repayment



### **Next Steps**

If the feedback to this discussion is positive, the council will prepare a treasury proposal for the loan, including the details of the multisig wallets to which the tokens will be transferred..

#27 Loan of 5,000,000 PEN to Support LP Positions on Hydration DEX - Feedback Welcome

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