This is your speculation. Providing liquidity in curve is a high yield strategy, and it comes with an appropriate risk. I don’t think it’s a good fit for the DAO treasury.
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Lol, exactly, “essentially”. Again, I know how curve works @noahns , I was being meticulous for the sake of argument, as there is tiny impermanent loss when they fluctuate around the dollar. True that it’s offset by the rewards. And let’s not exaggerate @Mori , calling curve a “high yield” strategy is a bit too much IMO, the risk is very low in the space and so is the yield. And I’m afraid I agree with @noahns here, USDT collapsing would affect the whole crypto space even if you don’t own USDT, probably the panic would affect all stable coins. @noahns , if you add the option to invest DAI only (be it on curve or on Aave) for now, and consider lending GHST later when it launches on Aave, you have my “yes”. After sleeping on it I prefer not to increase FRENS inflation further with the DAOs treasury for now.
I don’t think there’s a way to add a voting option at this point. But you can vote “yes” to send this to a CoreProp, and we can add it in as an option for the CoreProp if enough other people agree.
Regarding the inflation of FRENS, I think people are being a little overreactive. We’re not talking about an insane amount of money here – it’s roughly $500k of GHST. That’s the equivalent of one new whale joining the ecosystem. That amount of new FRENS is not going to dilute ticket prices – Pixelcraft gave away millions of dollars worth of drop tickets as part of the recent giveaway, and the price of tickets went UP. And of course, it’s in the Dao’s interest in the future not to dilute yield, as most of us are staking GHST for FRENS anyways. This vote is about giving the Dao the option in the future to use those FRENS for something that the Dao decides upon (or not). But just staking the GHST is not going to impact anyone’s yield.
I’ll then vote yes for the SigProp, but I hope the option is added in the CoreProp. And I get that you are saying the DAO would be HODLing FRENS and not affecting the market, but probably they’ll be spent at some point, or at least there is a chance they will. In any case, putting GHST to work for FRENS is controversial as it MAY arguably affect people’s yield, so I prefer to stay away from it and wait for Aave. Maybe you are right, maybe not, but that’s just how I feel about it. Thanks for engaging!
Something that should had been done since day 0. I agree.
I don’t agree with Pixelcraft and the DAO farming its own FRENs/its own market as a whale. Albeit we already have certain whales that together could form a bigger treasury than ours which could try to do marketing by themselves but they don’t for some reason.
I also like to suggest for December that using the treasury funds we should short the crypto market in January either in a future token that’s certain to go down like ICP which allows for 5x-50x or we go for safer stuff like non-liquidating tokens you can go 3x long or 3x short available on Binance and FTX. This could had been done when BTC reached 64k.
A further suggestion is non crypto investments; shorting Tesla stocks, buying silver or copper, buying Great Britain Pounds, AirBnB stocks, etc.
What about makerdao considering the origins of DAI and it’s stellar reputation. If not Maker then, naturally Aave.
I’m sorry but shorting anything with our treasury funds is quite risky IMO @FlameViper lead times would allow counterparties to easily prepare countermeasures.
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Good idea, but may be not of all 100% treasury but 20-30%.
Staking GHST I don’t like.
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Agree we shouldn’t stake everything, and we might also want to diversify where we are staking to the extent possible. The treasury should be invested conservatively.
The DAO should also probably purchase some land — perhaps we could enter into talks for a Paartner parcel, or a few? They would be, as I take it, yield-bearing themselves (adding Alchemica to the treasury seems logical), and would create a sense of publicness + participation in the 'verse. You could even look to set up a ‘welcome center,’ a kind of first stop for new arrivals, maintained/enriched by DAO grants as needed.
And with the others, I would generally support distributing at least 20-30% of the treasury DAI — though not necessarily as DAI — among various top-tier Polygon-ready protocols: so Curve, Aave, Sushi come to mind. (If every user is putting funds in Aave in the form of spirit force, it’s a bit strange if the DAO won’t do the same!)
Can we put that idea to a SigProp vote ASAP? As @noahns said many months ago, it feels irresponsible not to make the proverbial hay while the sun shines, yieldwise.
I don’t agree with using DAO funds to trade options. I also don’t agree with using GHST to stake for FRENS.
I like the idea of using tested protocols to generate yield on stable assets - or using other stablecoins to pull in Polygon related project assets into the treasury to help diversify at no risk.
@noahns brings up Curve. Aave is a great option. Balancer is another. We could provide stablecoin liquidity on Quickswap as well to earn dQUCIK. We could use the GHST in a Qi Dao vault with a very high Collateral to Debt Ratio rate (300% +) and use those stables to farm as well (a bit riskier than the other two options). I like ideas that have low risk, generate yield and pull more partner assets into the treasury.
These are just some base ideas.
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It is best to avoid conflict under supervision
The DAO actually has 1000 parcels allocated to it already within the citaadel, so no need for a paartner parcel!
Aawesome, @coderdan. Can’t wait to see how it/we use them.