Discover more from Coinshift Newsletter
$ 867 Million total assets and $25.6 million in payouts 🔥🔥, Treasury AMA Insights, Treasury proposals, Tweets, and Good reads...
🌈 Hey Fam,
A look at our growth numbers 👀
Latest MultiSafe Stats
Total Users - 223
Payouts - $ 25.6 M ✅
Total assets - $ 867 Million ✅
We spend a lot of time creating our Treasury management platform so that we can provide you with the best experience. In this, our driving force is your feedback. So reach out to us at Discord. Every response will be read. ✌️
And if you find this useful how about sharing the newsletter with your peers or the ones you find would be interested in reading.
You can even subscribe to get the weekly updates on Coinshift and Crypto Treasuries
Every week, we share the curated treasury proposals to update our readers about the latest implementation across Crypto Treasuries.
Recently, In our Treasury AMA with Element Finance, we got a lot of new insights on Fixed rate yields, Financial primitives, and plans with longer-term fixed yield options for DAO Treasuries.
Thanks to all who joined us 🙏
We will start again with our Treasury AMA in January 2022, with a list of more protocols. Stay tuned ✌️
Check our Twitter thread with detailed Insights here 🔥
Find the video of our Q&A here
Here are the curated Treasury proposals that give us insights into how DAOs and Crypto companies are managing their treasuries.
1️⃣ Proposal: City DAO’s Treasury Management Strategy
CityDAO currently has a treasury of over $10 million in ETH. The Treasury management strategy focuses on managing funds to earn yield and enable City DAO to purchase physical assets like land and buildings.
Eth in reserves can be used in farming strategies earning yield.
Strategy around selling Eth into stables to purchase physical assets.
Moving to Stablecoin focused treasury -
DCA by time - Set times to sell ETH gradually. For example, monthly or weekly. This guarantees inflows of stables that can be used regardless of market conditions as a set amount of ETH is sold at the current market price.
DCA by price. Set specific price targets to sell portions of ETH into stables. This allows for the DAO to sell at the best price points and lower the drawdown risk from a pure ETH treasury.
What is DCA?
Dollar-cost averaging (DCA) is an investment strategy in which an investor divides up the total amount to be invested across periodic purchases of a target asset to reduce the impact of volatility on the overall purchase. The purchases occur regardless of the asset's price and at regular intervals.
Funds will be managed by -
The Treasury management board will manage sales and maximize the stables earned by selling Eth.
Combined Management Plan to make a combined decision on how to move Eth into stables.
City DAO's Treasury Phase 1 - Based on Treasury Management Strategy outlining the goal of mitigating downside risk. They retain ETH exposure while building value in USDC assets to enable the ability to perform real-world operations and asset acquisition. This document includes City DAO's exposure to ETH yields through Ribbon Finance and USDC through a DCA strategy based on time and ETH value.
Read the proposal here.
2️⃣ Proposal: Gnosis DAO proposes to create a separate Safe for Active Treasury Management
Gnosis DAO Safe proposed to set up a dedicated active treasury management Safe and upgrade Gnosis DAO Safe from version 1.1.1 to 1.3.0 2.
Upgrading Gnosis DAO Safe will enable the transfer for UNIV3 NFTs, which currently cannot be sent from the Gnosis Ltd Safe.
For this, Gnosis DAO shall set up another Safe ‘Gnosis DAO Active Treasury Safe’ of which the Gnosis DAO is the only signer and added as a module. Gnosis DAO shall then add the Gnosis DAO signers to the Active Treasury Safe and transfer the funds earmarked for yield farming to this Safe.
Funds that will be transferred to the new active treasury management Safe
Read the proposal here to know how this will be implemented.
3️⃣ Proposal: Support Izumi Finance as the official Uniswap V3 Liquidity Mining Platform
About Izumi Finance -
Izumi Finance provides liquidity as a Service (LaaS) with Uniswap V3 and a built-in multi-chain dex.
Includes innovatively designed liquidity mining modules -
“Concentrated liquidity mining” model - For Stable assets with fixed price.
“One-sided non-impermanent loss Mining” model - For non-stable tokens.
This is beneficial for the blockchain projects to implement liquidity incentives with higher capital efficiency better and enable liquidity providers to earn extra rewards.
The most exciting part about this proposal is -
➡️ Izumi Finance’s LiquidBox: UniswapV3 NFT Farming Platform
What is Uniswap V3 NFT?
Compared with Uniswap V2, only allowing LPs to provide liquidity in the full price range from 0 to infinity, Uniswap V3 will enable LPs to be within a certain price range. LPs receive NFTs (Non-Fungible Token) after adding liquidity, and due to the non-fungible nature of the positions, fee earnings are stored separately and held as tokens in which the fees are paid.
Option 1: “Concentrated liquidity mining” model for stablecoin with fixed price
Each block in the (0.95p,1.05p) price range earns 10 tokens from the stablecoin and pegged-asset issuer. Izumi evaluates the total effective liquidity in the (0.95p,1.05p) price range and assigns it linearly according to the proportion held by each LP, thus attracting liquidity to this range to achieve minimum slippage.
Note: If the LP provides liquidity in a price range that is over-covering (0.95p,1.05p), only the liquidity within (0.95p,1.05p) is calculated as the weight of the incentive allocation; if the NFT price range offered by the LP is inside (0.95p,1.05p), such as (0.98p,1.02p), no incentive is given or a weight penalty factor is applied.
Analysis: Compared to the xy=k model, the 0.95–1.05 interval is over 50 times more capital efficient, requiring only one-fifth of the TVL and incentives for the same slippage.
Option 2: “One-sided non-impermanent loss mining model” for emerging-asset to make liquidity mining more attractive when price continues going up
Izumi LiquidBox allows liquidity mining incentive tokens in the current price range to compensate for the impermanent loss caused by price change within a corresponding time interval.
Like the traditional xy=k model, the LP also puts half the value of the USDC and half the value of the project tokens into the Izumi LiquidBox to start liquidity mining with one click.
Izumi LiquidBox innovated the “one-sided non-impermanent loss” model based on Uniswap V3, which puts the LP’s USDC into the (Pa, Pc), just below the current price Pc, and puts the LP’s project tokens into the staking mining instead of into the trading pool. (i.e., above Pc as potential sellers), thus creating a “stronger buying than selling model,” which is more conducive to a price increase.
Analysis: When the price goes up, there is no impermanent loss, and when the price goes down, the percentage of impermanent loss for LP (Pa=0) is the same as xy=k. In the upcycle, passive sell liquidity is low, whereas in the down cycle, buying support is consistent (if Pa is greater than 0, then the buying power is also enhanced).
Note: Izumi will Launch the LiquidBox on December 21st.
Read the proposal here.
Tweet on DAO Treasuries
In case you missed it 🗞
Coinshift simplifies treasury management by providing efficient multisig tooling to save time & money for crypto teams.
Stay connected. Stay Awesome 🤘