[Proposal] Treasury Rebalance 2

Motivation:

The aim of this proposal is to rebalance our treasury to achieve higher monthly revenue from yield and ensure longevity. In the #:bank:treasury we were discussing two alternatives (A & B).

Current Status

Asset Protocol Chain $ Current Price Amount $ Value APR $ Monthly Yield
Stables (FRAX/USDC) Uniswap v3 ETH 1.00 230,210.00 230,210.00 2.00% 387.99
ETH/TOKE LP Uniswap v3 ETH 197.70 253.95 50,206.00 0.00% 0.00
FXS Convex ETH 7.20 851.00 6,127.20 40.00% 206.53
Total Monthly Yield 594.53

Alternative A

Asset Protocol Chain $ Current Price Amount $ Value APR $ Monthly Yield
FPI/FRAX Convex ETH 1.00 115,105.00 115,105.00 33.00% 3,200.95
DAI Snowball (Benqi) AVAX 1.00 115,105.00 115,105.00 7.00% 678.99
ETH/TOKE LP Sushi ETH 197.70 253.95 50,206.00 50.00% 2,115.42
FXS Convex (cvxFXS) ETH 7.20 851.00 6,127.20 40.00% 206.53
Total Monthly Yield 6,201.90

Rationale:

  • We should diversify stables (currently we have all eggs in the same basket)
  • We should keep ETH/TOKE LP tokens, but move them to Sushi

Alternative B

Asset Protocol Chain $ Current Price Amount $ Value APR $ Monthly Yield
FPI/FRAX Convex ETH 1.00 230,210.00 230,210.00 33.00% 6,401.91
ETH/TOKE LP Sushi ETH 197.70 253.95 50,206.00 50.00% 2,115.42
FXS Convex (cvxFXS) ETH 7.20 851.00 6,127.20 40.00% 206.53
Total Monthly Yield 8,723.86

Rationale:

  • We should not diversify stables and get higher APR
  • We should keep ETH/TOKE LP tokens, but move them to Sushi

I am prob going to vote for Alternative B because i believe the risk is a bit overblown. On L2 there is a not only Smart contract risk but also the bridge risk as well as the de-peg risk as liquidity is generally not that high on L2s.

I think it’s going to be interesting to see the outcome of the vote. Maybe if there is no clear quorum the voting can happen on the amount of % split between Convex and Snowball. Right now its suggested 50-50% but it can be any other ratio basically.

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I am personally more in favor of sacrificing a bit of yield to not have all the eggs in the same basket (even tho I agree with relatively low risk on FPI/FRAX).

It’s a good idea to vote on %, but then we need separate proposals for moving ETH/TOKE LPs and how to split stables. I would personally just role with this one for now.

Another point is a relatively low amount of suggestions from committee members. My proposal is to remove the committee role (to include more people in the discussion about that).

I’mma be real, I have read this a few times now and because I am not a person who has cared to learn anything about investing / returns etc I don’t feel comfortable voting. I understand what I am reading but have ZERO lived experience to weigh in on the matter.

While I am not currently active in the forefront of the community I am always a DM away and read things as they develop in the server and on the forum / website. I follow the twitter account and am a big fan of a handful of contributors. I also dig the youtube playlist!

After reflecting for a bit I sat with how there are many ways to contribute and just because you can does not mean you always should.

Reflecting on wielding my influence with discernment.

Wanna thank you all for the transparency / sharing updates so it is possible to follow the project as it develops, I have enjoyed watching it evolve over time.

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