Treasury House

$ 1.2 Billion total assets and $ 44.8 Million in payouts, Treasury AMA Highlight, Treasury Proposals & Good reads...

Sukanshi

Feb 24, 2022

Growth Numbers 👀

Latest Coinshift Stats

Total Users - 739
Payouts - $ 44.8 Million ⬆️
Total assets - $ 1.2 Billion ⬆️

We spend a lot of time building Coinshift’s Treasury management platform & curating the latest proposals & Good reads for this Newsletter. All efforts are done to keep our readers updated with the latest implementations across Coinshift & Crypto Treasuries.

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➡️ Treasury AMA with Lido Finance

We’re having Treasury AMA with Lido Finance on Fri, 25th Feb | 16:00 (CET)

📍Twitter Spaces

Guest:

Jacob Blish (Head of Business Development, Lido Finance)

About Lido:

ETH has become a primary treasury asset for many DAOs. However, there are advantages to using “liquid staked” versions of ETH that generate yield without long-term lock-up. Lido’s stETH is a perfect example of this.

Learnings :

Benefits of stETH & how it can be used across various DeFi protocols.
How to earn an extra yield on ETH with minimal risk.
What’s in Lido’s roadmap for 2022?
How does Lido DAO incorporate stETH within its own Treasury?

❓What else would you like to ask Lido Finance? Drop questions in the comment section.

Set reminder here - https://bit.ly/3h4sVkA

Proposals

1️⃣ Olympus DAO Proposal: Approve FIAT DAO as an OHMDEBTOR

About:

FIAT DAO - FIAT Protocol lets users borrow against positions in fixed income assets on various DeFi platforms in order to facilitate use cases like yield releveraging and arbitrage. By providing users with a collateralized credit facility, FIAT reduces the opportunity cost of underwriting DeFi debt positions and aggregates secondary liquidity for such assets.

Olympus DAO is a decentralized reserve currency protocol based on the OHM token. Each OHM token is backed by a basket of assets (e.g. DAI, FRAX) in the Olympus treasury, giving it an intrinsic value that it cannot fall below.

Proposal’s Key Highlights

FIAT DAO is transitioning away from gOHM-denominated liquidity on mainnet Sushiswap to OHM-denominated liquidity on mainnet Uniswap v3.
There is no easy way to migrate liquidity away from Sushiswap gOHM to Uniswap v3 OHM. Possible ways include:
- Pair discretionary budget FDT against the partnership OHM
- Unwrap and migrate the Sushiswap liquidity owned by the DAO to Uniswap v3.
Doing this can erode FIAT DAO’s relative stake in the OlympusDAO, precluding it from participating in community governance. Keen on finding a solution that preserves the FIAT DAO’s OHM purchasing power, retains voting privileges, and unlocks liquidity for users holding FDT.
Olympus DAO consults its Treasury and Partnerships teams and seeks approval from the community for being an OHMDEBTOR (the incurDebt() function) - which would allow FIAT DAO to collateralize its treasury’s sOHM + provide OHM liquidity against FDT (FIAT DAO’s governance token for liquidity mining rewards)
Borrowing parameters:
- An absolute borrowing limit of 80,000 OHM
- A 75% LTV limit
Also, Olympus DAO will work with its contributors to deploy the incurred debtOHM to a smart contract ensuring no borrowed OHM is ever sold or staked.

LTV (Loan-To-Value): The loan-to-value ratio is used to measure risk in a collateralized loan. For example: For $200,000 value with LTV limit 75%, total loan amount will be $150,000.

Note: In this proposal, the absolute borrowing limit is 80,000 OHM

Read the entire proposal here

2️⃣ Wonderland Proposal: Offer a Rage Quit Option to wMEMO holders

About: Wonderland is the first decentralized cross-chain reserve currency protocol on the TIME token. Each TIME token is backed by a basket of assets (e.g., MIM, TIME-AVAX LP Tokens etc etc) in the Wonderland treasury, giving it an intrinsic value that it cannot fall below

Proposal’s Key learnings

Due to inefficiencies in treasury management Wonderland’s token wMEMO price has dropped (far under the treasury backing)
The proposal ‘Rage Quit’ is launched to allow wMEMO holders exit the DAO at a value that is close to treasury backing and continue with the individuals who are aligned towards long term success of the project.
What is Rage Quit Contract?
Rage quit contract is the data that every whitelisted wMEMO holder can see its capital allocated to the address that can be claimed for their wMEMO, respecting the 5%-10% variance from the original backing price. Each participant will be able to redeem their wMEMO against the calculated backing price in MIM tokens.
The development team will assess the data and announce the required assets necessary for the whitelisted wMEMO holders to exit. The multisig will get the treasury ready and will start the rage quit process within 48 hours from the ending of the whitelist snapshot vote.
Voting consists of two phases:
- Phase 1: Snapshot Governance
  - WIP #5.1: Offer A Rage Quit Option to wMEMO holders
    The goal is to decide if the community wants to implement a Rage Quit contract which allows wMEMO holders to enter a whitelist and exit the DAO at a predetermined valuation.
  - WIP #5.2: Rage Quit Whitelist
    The goal is to create a whitelist and allow the treasury to prepare the funds and contracts according to the amount of wMEMO entering the whitelist. This extra data will increase the efficiency of the rage quit contract and lower slippage.
- Phase 2: Deployment of Rage Quit Contract
  - This is already announced backing price of wMEMO, calculated by the development team. This value together with the whitelist data will be assessed and used to create the Rage Quit Contract. The contract will allow each whitelisted user to exchange their wMEMO with the predetermined backing price ±5-10% slippage.

Read the entire proposal here

3️⃣ Proposal: ParaSwap DAO budget for 2022

About: ParaSwap aggregates decentralized exchanges and other DeFi services in one comprehensive interface to streamline and facilitate users' interactions with decentralized finance on Ethereum and EVM-compatible chains: Polygon, Avalanche, BSC & more.

Proposal’s Key learnings

The proposal aims are to establish a budget for the $PSP holdings of ParaSwap DAO which has been unvested over a year. Investing holding requires lowering the current staking rewards, rebalancing the risk vs LPs, and establish upper spending limits for other DAO spending categories.
Total of 270M will be used from November 2021 to December 31st 2022. In 13.5 months Paraswap will receive 13.5% of the total supply.
8 sub-proposals in total will be submitted:
- PSP-BPΔ1-1. Reduce the staking rewards budget (33M $PSP, 13.88% budget)
- PSP-BPΔ1-2. Increase the liquidity mining DAO budget (42.58M $PSP, 17.91% budget)
- PSP-BPΔ1-3. Curve war & $CVX budget (45M $PSP, 18.93% budget)
- PSP-BPΔ1-4. Gas refund program budget (30.8M $PSP, 12.95% budget)
- PSP-BPΔ1-5. Protocol owned liquidity (POL) budget (11M $PSP, 4.63% budget)
- PSP-BPΔ1-6. Grant-Micro Grant budget (5.5M $PSP, 2.31% budget)
- PSP-BPΔ1-7. Marketing & Partnership budget (4.95M $PSP, 2.08% budget)
- PSP-BPΔ1-8. Contributors budget (5.5M $PSP, 2.31% budget)

Voting options

Accept the potential max spending of 56.78M PSP for February, March and April 2022
Refuse the potential max spending ok 56.78M PSP for February, March and April 2022
Abstain

Read the entire proposal here