Discover more from Coinshift Newsletter
$17.2M in payouts, $491M assets imported, SushiSwap proposal to collateralize SUSHI Reactor on Tokemak, Treasury Swap: Balancer DAO <> Fei DAO, and more.
🌈 Hey Coinshifters,
The growth numbers have been doing really really well, along with the exciting updates on SushiSwap, ShapeShift, and Balancer DAO <> Fei DAO Treasury Swap.
Almost half a billion, interesting isn't it?
Latest MultiSafe Stats
Total Users - 189
Payouts - $ 17.2M ✅
Total assets - $ 491 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. ✌️
Treasury proposals for this week
1️⃣ SushiSwap’s proposal to collateralize SUSHI Reactor on Tokemak
Sushi Swap was one of the reactor winners of Tokemak C.o.R.E along with Olympus (OHM), Alchemix (ALCX), Frax (FXS), and Tracer (TCR).
Now the plan is to collateralize a SUSHI reactor that will allow users to
Strengthen Liquidity for Sushi: SUSHI reactor can massively reduce the complexity and cost for LP’ing SUSHI.
a. Users simply single-asset (SUSHI) stake with IL protection.
b. Users do not have to provide equal value in another asset (e.g. ETH), effectively cutting the cost of LP in half.
c. Stakers earn yield in the form of TOKE, Tokemak’s native token.
d. SUSHI paired with a quote asset (e.g. ETH) from other stakers (Liquidity Providers) and deployed to DEXs in order to build market depth and support healthy exchange markets.
Build Sushiswap Liquidity: Approval of this proposal makes the SushiSwap DAO a powerful Liquidity Director. Liquidity Directors can stake TOKE into individual Reactors and vote on how liquidity is deployed into markets. As a meaningful holder of TOKE, SushiSwap will be in the unique position to direct Tokemak TVL to augment liquidity in any liquidity pool supported by Tokemak.
In the future, this partnership can open many opportunities like -
SUSHI stakers that were previously single-asset staked in SushiSwap now become SUSHI liquidity providers, further increasing SUSHI liquidity in DeFi.
SushiSwap, as the ultimate tSUSHI holder, would be the recipient of a sizable amount of TOKE rewards, which could be used to direct further Tokemak liquidity (to SushiSwap) or to supplement pool rewards.
SUSHI rewards to current SUSHI stakers in SushiSwap could be lowered as single-asset SUSHI LPs benefit from IL mitigation and/or SUSHI rewards are supplemented by additional TOKE rewards.
To launch a SUSHI reactor, Tokemak requires an operational reserve (“collateral”) of SUSHI to efficiently deploy SUSHI liquidity to DEXs and enable SUSHI LPs on Tokemak to benefit from IL mitigation. The operational reserve will be achieved via a DAO-to-DAO swap structured as:
SushiSwap and Tokemak will execute a token swap valued up to $3M USD in each token, SUSHI, and TOKE, respectively.
The execution price will be at the 7-day moving average with no price discount the day this proposal passes.
Before this Bankless DAO came up with the proposal on Executing swap with Tokemak for BANK reactor ignition - dependent upon C.O.R.E voting results. The result is in favor of executing the swap.
Click here to read and vote for the proposal.
2️⃣ ShapeShift Proposal for $1M token swap and joint LP with THORChain
THORChain and ShapeShift DAO have long been good friends. ShapeShift provides a free web and mobile interface to THORChain, and THORChain powers ShapeShift’s cross-chain swapping. And while exploring ways to strengthen the relationship a member of the THORChain community came up with the proposal explained below -
ShapeShift DAO sends $1M in FOX directly to the THORChain deployer
THORChain sends $1M of RUNE to ShapeShift DAO
Both Treasuries deposit $2M of FOX & RUNE to the FOX:RUNE Pool on THORChain and increase the depth of the pool’s liquidity by $4,000,000
Communities can be Incentivised by
Diversifying ShapeShift DAO’s Treasury to include RUNE, an asset with strong tokenomics and upside potential.
Establishing FOX liquidity on THORChain, enabling decentralized cross-chain swaps for FOX for the first time, and opening the door for FOX holders to LP on THORChain
ShapeShift DAO’s liquidity position will earn revenues from trade fees and RUNE emissions
Click here to read the proposal.
3️⃣ Treasury Swap: Balancer DAO <> Fei DAO
Fei has created a stablecoin that stabilizes itself through transparent on-chain reserves. In their recent announcement of Fei V2, introduced a way to algorithmically manage volatility risk through a custom Investment Pool using the Balancer v2 platform. This has the potential to add Fei’s current PCV (currently $913M +) to the Balancer platform.
200,000 BAL from the Ecosystem Fund would be exchanged for the equivalent USD value of TRIBE and FEI in equal proportions from Fei DAO Treasury. The balancer further commits to hold TRIBE for the long run and use FEI for operations.
Benefits for the Treasury swap -
Treasury diversification into two assets (FEI, a stable asset, and TRIBE, with governance rights and Protocol Controlled Value performance upside)
Balancer DAO is eligible to earn additional TRIBE by participating in Fei’s incentivized staking programs (Uni v2, Rari, Curve, etc.)
FEI would give Balancer stable assets in its Treasury
Distributes tokens into the hands of a long-term ecosystem partner
Governance power for DAO proposals
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!
Coinshift aims to simplify crypto treasury management for Companies & DAOs - built using Gnosis Safe, IPFS & Filecoin.
Stay connected. Stay Awesome 🤘