Notes: Treasury Task Force (Weekly Calls)

2021-11-16 Treasury Task Force
Meeting #1

  • T DAO treasury will start with 1 bn tokens

  • Four questions to address

    • Liquidity needs
      • Fei & Ondo
        • Vault w/ T tokens and FEI and Ondo
      • Tokemak
      • Olympus Pro
    • Income & Revenues
      • Fees from apps
      • Fees from LP positions
    • Expenses
      • Employees
      • Grants
      • Guilds
    • Treasury Diversification & Investments
      • Stables
        • Is USDC acceptable?
        • Is DAI preferred?
        • DAO should OTC to stables
        • How much of our stables should we lend?
          • Is half reasonable?
  • What is our target yield?

    • Daily, weekly, quarterly liquidity needs?
    • How risk averse is the DAO?
      • We should target 2 yrs (24 months) liquidity
  • Next steps

    • Target integrations with Ribbon & Maple
    • Execution is difficult
      • Technical considerations, what do we need?
        • Treasury controlled by a multi-sig
        • Multi-sig can delegate a ‘budget’ to a multi-sig
      • We need something like a committee to have some autonomy to avoid front running.
    • Start with high level allocations
    • What resources are we working with?
    • Need to figure out what 2 years of liquidity is.
  • Schedule for these calls

    • 830-930AM ET Tuesdays
  • Two open questions

    • How do we get value to the T token?
      • Buyback and Make article - smart Pool
2 Likes

2021-11-23 Treasury Task Force
Meeting #2

  • Technical features required
    • A budget mechanism
      • Each guild has a multisig and the multsig gets sent a budget
    • Fei Ondo could be easy liquidity
  • Will takes lead on guild structure and budgeting
  • East takes lead on liquidity
  • Jake takes lead on governance
    • Targets:
      • MStable - Long Term Governance?
      • Curve + Bribe
        • How to bribe w/o getting front run
        • Governance guild
      • Saddle - Long Term
        • Continue rewards?
  • How are budgets allocated?
    • Monthly allowance
    • Quarterly/annual budget
3 Likes

2021-12-07 Treasury Task Force
Meeting #3

  • Threshold USD updates (Agoristen and Ben)
    • Proposal is making progress with task force
  • Liquidity Needs (Eastban)
    • Eastban working on Alchemix, KeeperDAO, MStable, Balancer
    • Looking for other protocols that uses the buyback and make
  • DAO-to-DAO Governance Updates (Jake)
    • No updates on that front
    • Need to update on MStable, Curve, etc.
    • Target assets are ones that: (s/o Will)
      • We’re bullish on / like
      • Advantageous from a governance perspective
      • Farmable (is a major plus)
      • Consideration: Token swaps can be dangerous unless they are trusted
    • Maple would be a good staking partner to approach
    • Let’s start presenting this on a weekly basis if possible
    • To talk about at next community call:
      • Are we ok with delegating responsibility to a company to exercise an open market acquisition of another project’s governance tokens?
      • This will prevent us from being front-run (on an open treasury process), but we can still mitigate risk by allocating a budget.
  • Budgeting for Guilds (Will)
    • Best way to do budgeting for guilds is streaming budgets with independent multi-sigs
    • How to decide funding size:
      • Community driven decision
    • How to distribute tasks for the various guilds?
      • Suggestion: For marketing guild specifically:
        • Monthly meetings to decide tasks for the month
        • Do a bankless dao bounty system
      • Thoughts on this proposal:
        • East: Agreed
          • Could also add a “tipping pot”
        • Jake: Agreed
          • Could be helpful for thUSD
      • Will setting up call with coordinape
  • What would it take to set up a bounty board? (Will)
    • Naxsun has started figuring this with Bankless
    • Should each guild manage their own?
      • Let’s start out with the marketing guild
    • Open question: is there KYC required?
    • Jake: Long term I think we want one board for all guilds, but to start we want to have a relatively small test (e.g. marketing).
    • This could potentially fall under the treasury responsibilities
    • Board is an opportunity for anyone to get involved - Will & Ms. Nu want to be a part of this or take lead
  • What returns should we be targeting? (Jake)
    • The inflation rate is 10%, this should serve as a standard annual hurdle rate.
    • The more pressing issues are liquidity and incentives (bribes, etc.)
    • Once we have that figured out we can focus more long term on yields and investments.
  • Lead on Olympus Pro - Billiboi
  • Jake to introduce Ondo contact to Eastban
3 Likes

2021-12-14 Treasury Task Force
Meeting #4

  • Olympus Pro

    • Form is ready, just needs final discussion to hit remaining points
    • Open Question: What AMMs have they done bonding on? Is Curve an option?
      • @billi will research
  • CRV

    • They do have volatile pairs (that’s an update of v2)
    • Does it make sense to concentrate our liquidity pairs on Curve?
    • What should our pairs start out as?
      • T-ETH pool
      • Roll out tUSD when ready
  • Olympus

    • Start with bonding for T-ETH
    • Then expand to stable pairs
    • 3% fee from Olympus DAO
  • CRV + Convex Open Questions

    • How much sense does it make to own CRV or CVX in the treasury vs using the bribe? Rent vs own
      • Maybe modeling out same buying power
  • Check-in on Threshold USD

    • Still in brainstorming mode
    • Discussion about interest rate
      • Liquity pays issuance fee not interest
      • Ongoing interest rate continues to generate value
  • Follow up on Reflexer (RAI)

    • Adding another token might be a non-starter
  • Summary

    • Will on budget
    • East on research + liquidity
    • Jake on Curve econ
    • Billi on O-Bonds
    • Agoristen + Ben on Threshold USD
    • Need lead on Buyback & Make (Balancer)
6 Likes

2021-12-21 Treasury Task Force
Meeting #5

  • Olympus Updates
    • Follow up on questions
      • What is the flexibility of terms on O-Bonds?
        • Size of bond
        • Bond vesting term
        • Bond control variable
      • Can Curve pools be incentivized?
        • Initial review reveals not just Uniswap/Sushi pools.
        • There are Convex, Visor, etc.
        • One of the inputs you give is the target address
      • Should we do this ourselves?
        • Pros of Olympus Pro
          • Visibility
          • Liquidity
          • Management
        • Cons of Olympus Pro
          • Can’t issue custom condition (i.e. require staking)
          • Fees
          • Reputation of the issuer
        • We can (should) do both.
  • Updates on Governance Purchasing
    • Curve vs. Convex
      • Convex is the clear winner here. We can do this in the short term
    • Alchemix & Other Large Holders
      • Explore OTC for better purchasing power
    • Tokemak
      • Explore long term when data comes out
    • Badger
      • Talk about a deal?
    • New KPI
      • Efficiency; $1 in bribes = $X in liquidity
  • Buy-back-and-make
    • MStable implementations shared
    • See docs shared by Eastban
1 Like

2022-01-04 Treasury Task Force
Meeting #6

  • LP for T
    • Maclane
      • TETH pair on Curve
      • Interest in moving Keep rewards over to a T pool to:
        • LP on T Uniswap Pool
        • TETH on Curve
          • Steps to move forward:
            • V2 Pools need to be manually deployed
            • Waiting on this from CRV
            • Plan ahead to do votium or bribe
        • Bribe.crv or votium
          • Might get a lot of new users / different demographics here
          • Michael thinks it is more efficient to bribe
            • Votium is better for quick boosts
            • Crv.bribe is better for mid term incentivization
            • Buying CVX is best for long term
      • Need ETH to LP for CRV
    • Will
      • Need tech support for migrating rewards but it’s possible
    • East
      • Alchemix is buying LP tokens, ETH tokens and CVX tokens with their bonds
      • Want some rewards system/incentives to direct rewards from bond program to prevent selling
        • Coverage pool is one place
      • Simple proposal to to take the KEEP-ETH rewards and direct it to votium
      • Will: Want to consider a phasing approach so we don’t surprise anyone with that
    • Ramuro
      • It’s very synergistic to have the bribes directed to the pool you’re LPing
    • Jake
      • We need a one sided pool to address the concerns voiced by East about providing a yield to prevent dumping
      • Tokemak could be a good solution for this
  • DAO Structure & Ops
    • Will will have will have budget spreadsheet setup next week
  • Ben on MStable Treasury Swap
    • Market cap is relatively small so our voting power would be high.
    • MStable is a good place for tBTC as well
    • Open Questions
      • Terms enforcement:
        • Looking into mStable 12-mo binding
        • Is this technically possible with T-tokens?
  • Next Steps
    • Reach out to Olympus
      • Billi Will
    • Reach out to Tokemak
      • Jake will
    • Follow up on enforcing MStable terms
      • Want people to be able to stake T but not transfer
      • Set up a task force for this
    • Inflation
      • What rate should we use?
2 Likes

2022-01-11 Treasury Task Force
Meeting #7

  • Paladin (via Figue)
    • Curve Powers
      • Proposal Power
      • Gauge Weight Power
      • Boost Power
    • Paladin’s focus on boost
      • Raising minimum APY and Maximum APY someone can farm with
      • Paladin’s focus is on Boost
      • On a big pool, you’ll be able to farm 15-45%
      • Platform allows you to chose how much you want to sell/buy veCRV
      • Right now it’s a UTC interface
      • Convex keeps the boost to themselves, Paladin builds on top of that feature, which enables people to maximize their farming
    • About bribing
      • You will never get a constant rate as the bids change every week for bribing on the curve gauge.
      • Need a budget of > $75k / week
      • 5% costs $260k / week
  • MBMDP
    • Numbers to decide on:
      • Manager Pay
        • 200k T / year to committee or council per year
      • Integrations Guild
        • 4 people
        • Monthly budget of 50k T
      • Treasury Management Task Force
        • 6 people
        • Monthly budget of 0 T
        • Annual budget of 10m T
      • Marketing Guild
        • 4 people
        • Monthly budget of 150k T
      • Council Grants
        • 9 people
      • Dev Grant Guild
        • No monthly budget
        • 6m T for year for:
          • Threshold USD & Threshold PFK
      • People’s Guild (HR)
        • 3 people
    • ~2.5% of DAO treasury for Y1