Treasury House
Discover more from Coinshift Newsletter
Treasury House
$15.7M in payouts, $263M assets imported, Coinshift Updates, Bankless BED Index in an effort to diversify the Uniswap DAO’s treasury, Olympus DAO's OHM-ETH Liquidity Bonds, and more.
🌈 Hey Coinshifters,
This week's product update includes a demo video on How to add notes to External Transactions.
And a lot more to deep dive into what all is happening in Crypto Treasuries. There are a lot of proposals which we curate and update every week in the newsletter with the perspective of keeping our Community updated with the latest information.
Even the growth numbers are updated every week.
So don’t miss it and let’s get started.
Latest MultiSafe Stats
Total Users - 174
Payouts - $ 15.7M ✅
Total assets - $ 263 Million ✅
How about sharing the newsletter with your peers or the ones you find would be interested.
Do you know - We spend a lot of time creating the best Treasury management software. And our driving force is your feedback. So reach out to us at - Discord Channel
Every response will be read. ✌️
🔥 This week in Coinshift
🙌 Adding notes to External Transactions
We are glad to share that we have pushed the release for adding notes for internal and external transactions to coinshift. You can even add notes to incoming transactions as well. The next up is adding labels to all the transactions and reporting based on the labels.
See the demo video below
https://www.loom.com/share/13bc2d30093a41f6820295a6048233d3
🔥 What’s new in crypto
👉 Bankless BED Index to diversify the Uniswap DAO’s treasury
The proposal to invest $1M-$5M into Bankless BED Index in order to diversify UniSwap’s DAO treasury. The long-term goal is to maintain DAO’s financial well-being by diversifying the treasury along with security and less volatility.
BED is an index created by Bankless and Index Coop including crypto’s investable assets like -
33.3% BTC,
33.3% ETH, and
33.3% DeFi Pulse Index (DPI)
This will strengthen the partnership between Uniswap, Index Coop, and Bankless DAO. BED Index will be maintained in two phases -
Determination Phase (During the 4th week of the month) - In this phase, the changes for the next phase(reconstitution) will be determined.
Reconstitution Phase (Outcome phase) - Index composition will change to the new weights on the first Friday of the following month. I.e components will be added or removed.
Risk Analysis includes -
Smart Contract Risk: BED is using contracts from Set Protocols which is audited by OpenZeppelin in September 2020.
Counterparty Risk: Signers are responsible for initiating rebalances, performing meta-governance, and adding or removing new protocol functionality who are currently members of the Set team with the intention to add Index Coop community signers over time.
Liquidity Risk: BED holders have the option to mint/redeem the underlying tokens within BED, it draws on the liquidity of the underlying assets and also allows for any deviation from Net Asset Value (the market value of all the underlying components).
Market Risk: BED is a basket of tokens likely to have less volatility than the component assets by themselves. So start exposure to market risk by investing a small amount of 1 million USD to 5 million USD.
Click here to read and vote for the proposal.
👉 Olympus DAO to launch OHM-ETH Liquidity Bonds
OHM has attracted the community as there is a rapid increase in its adoption for treasury reserve and liquidity assets because of its increase in value over the period of time.
In order to maintain a healthy amount of liquidity relative to the growing market cap, a large OHM-ETH pool can help accomplish this.
Currently, the users have to route from ETH -> DAI -> OHM which causes double trading fees (0.6% vs 0.3%). while the creation of the OHM-ETH pool would reduce the fees for the user.
Note: ETH mentioned is actually wETH (wrapped ETH).
Proposal includes -
Match $2.5M worth of DAO OHM with $2.5M worth of Treasury ETH ($5m total liquidity) for the initial LP position to bootstrap the pool.
Launch an OHM-ETH bond
Target an initial $100m in liquidity accumulated over a minimum of 4 weeks (depending on market conditions)
After that, maintain 20% of our total liquidity in the OHM-ETH pool
Click here to read and vote for the proposal.
👉 Proposal for Community-enabled Analytics for Sushi Swap by Flipside.
SushiSwap has proposed Community-enabled Analytics by Flipside to develop an educated and passionate community along with rewarding them for learning, analyzing, and publishing blockchain data. Flipside’s first CEA program was with Uniswap and this time its Sushi Swap.
Focus points for this analytics would be - customer acquisition, ecosystem growth, and token circulation. There is a grant request for 1M USD annually in $SUSHI to fund the CEA program. Breakdown of funds -
50% of this will be delivered to ecosystem community members as bounties ($41,667 per month)
The other 50% ($41,667 per month) is the subsidization of operational and infrastructure costs.
The image below describes how analytics will work -
Outcome expectations are -
Community of 460 educated analysts to produce on-demand insights for Sushi
27,000 $SUSHI retained in the ecosystem
350+ unique dashboards, queries, visualizations, & in-depth analyses, plus premium interactive solutions including a Trident concentrated liquidity calculator.
How Flipside will ensure accountability to Sushi ecosystem -
Oversight Committee will have 5 members chosen by the SushiSwap community which will meet Flipside representative quarterly to review and ensure accountability and voting will be done annually in order to evaluate the continuation of the program.
Transparency will be maintained by providing the Custom Dashboard to the Sushi community where the results of the program will be broadcast live.
Click here to read and vote for the proposal.
👉 Grant the Index Coop Funding Council (~$2.1 MM) from its Treasury
In order to continue operations Index coop has proposed a grant of 53,272 INDEX & 287,405 USDC (~$2.1 MM) from it’s Treasury. This will help them fund -
Working Group stipends, expenses & distributing working group contributor compensation.
Pay current full-time salaries that are not included in Working Group budgets.
Cover gas costs for the Funding Council using USDC. And would avoid selling INDEX for ETH for gas.
Detailed breakdown -
Click here to read and vote for the proposal.
👉 Proposal to fund the Moonshot Collective workstream (Q4) from GitcoinDAO Treasury
Gitcoin DAO has requested to fund Moonshot Collective 100k GTC from its Treasury for the upcoming 3 months.
The last Q3 fund of 40K GTC was a successful one as there were accomplishments like -
Moonshot Bots generated $2.2mm for the Gitcoin Grants multisig.
Quadratic Diplomacy - A decentralized tool for distributed rewards to workstreams.
Tip.Party - A tool for rewarding engagement in the DAO and more.
Moonshot collective is a collection of builders & web3 community members who are looking to prototype experiments in coordination (whether that’s public goods, private goods, governance tools).
The main reason to fund this project is to create an ecosystem for builders who will create an ecosystem and tools for GitcoinDAO.
Click here to read and vote for the proposal.
👉 Proposal to add stETH on AaveV2
A recent proposal to add Lido stETH on AaveV2 for lending and borrowing. The motivation of adding stETH is to earn additional yield without taking a lot of risk which is evident from the growth of the stETH/ETH pool on Curve Finance. The reasons that stETH can be considered as DeFi collateral are
stETH is almost as safe as ETH, price-wise: barring catastrophic scenarios, its value tends to hold the ETH peg well;
stETH is a productive asset. Earning rewards on collateral effectively lowers the cost of borrowing. This could make borrowing more attractive on Aave and help to increase market utilization (and therefore Aave’s protocol revenue from stablecoin reserve factors).
stETH is a very liquid asset with over $3.8 billion in liquidity locked in the Curve stETH/ETH pool.
Ways to use stETH as DeFi collateral -
Productive asset (e.g. in Nexus Mutual Treasury risk management strategy 2)
Compounding yield strategies (AMM, auto farms, soon Lending) (e.g. Convex, Yearn, Harvest)
Multichain lending (e.g. bETH on Terra in Anchor)
Risk Parameters and considerations-
stETH has been consistent during growth and market volatility -
LTV: 70%
Liquidation Threshold: 75%
Liquidation Bonus: 7.5%
Reserve Factor: 10%
Liquidity and risk Considerations for stETH-
stETH inherits all of ETH’s market risk, so they should be considered together for the purpose of evaluating market risk
stETH value is defined and backed by the value of Ether and expectations on the beacon chain withdrawals timeline. As the expected merge gets closer, stETH risk will drop down significantly.
stETH is one of the most liquid tokens in crypto with low exchange volumes and extremely high liquidity
stETH liquidity is ensured by Lido’s strategy incentivizing a consistent stETH peg
Click here to read the proposal.
If you’ve got thoughts on what should be discussed or any other feedback. Join us at our - Discord Channel
👋 👀 See ya’ll next week!
About Coinshift
Coinshift aims to simplify crypto treasury management for Companies & DAOs - built using Gnosis Safe, IPFS & Filecoin.
Stay connected. Stay Awesome 🤘