Proposal 222 (Q1845)
From Nouns Dev
A Nouns proposal.
| Language | Label | Description | Also known as |
|---|---|---|---|
| English | Proposal 222 |
A Nouns proposal. |
Statements
197
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27
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31 January 2023
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1560 studios
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Nouns Treasury Management
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89
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222
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28
More yield is great but the increased risk and complexity with a treasury this size is juice that is not worth the squeeze. Would also tweak the structure of the costs and the catch-up ETH basket.
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Positive return period for the DAO is too long..
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26
Thanks for the proposal! It would be very useful to have DAO-owned and managed vaults. That said, the catch up fees proposed are too high, and the specific strategies are not great r/r. Would welcome a resubmission of this proposal in the future.
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Reasonings compiled here: https://cbites.substack.com/p/active-governance-noun-582-1
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I think this is a really cool idea. Thanks to the proposers for the time spent on it! But I am voting against as I do not think it is a good fit for Nouns DAO. I think the DAO should be focused on spending ETH on Nounish things and not trying to earn yield through defi.
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**Prop 222: Nouncil Votes NO** --- **NO - 24 votes** - The catch-up payment on the yield earned before fees at 2% is way too high **YES - 13 votes** - absolute yes. sustainability rocks! - I think its right, its ETH that we can use to increase the return on our treasury **ABSTAIN - 3 votes** - I personally have no expertise in this field, therefor abstaining --- (15 Nouncillors abstained from this decision.)
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An experiment worth doing.
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31 January 2023
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I find the tech super interesting but I dont feel like its a good fit for Nouns.
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1
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3
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4
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65
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65
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The team at 1560 Studios is requesting 65ETH from NounsDAO to implement the Nouns Treasury Management (NTM), a decentralized yield-bearing asset manager. The goal is to ensure NounsDAOs self-sufficiency by maximizing the productivity of its assets. The NTM will manage a portion of the treasury and be completely governed by NounsDAO.
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Appreciate the questions!--“This seems like a mechanism of essentially creating the NFT/Crypto equivalent of a Mutual Fund to hold a basket of crypto assets for the community to speculate on.”:--This is quite different. There is no “fund” or basket of assets that the DAO speculates on. Productizing assets currently sitting in the treasury today does not equal purchasing speculative assets with those funds. NTM manages the assets it is given by the DAO and produces yields through various strategies that accrue daily. --“What's the hard limit on the size of this fund as a percentage of treasury size? 1%? 10% 100%?”--This is a decision that is up to the DAO and outside of the scope of this proposal. The DAO decides the types of vaults, the strategies, and amount of funds they want to put in. --“What's the risk/reward curve as we move up it in relation to more stable interest bearing funds like LIDO?”--Risk/reward is based on a per-strategy basis. For the pilot program, we’ve chosen strategies that we believe will yield a meaningful amount to the DAO while assuming low risk. While nothing is risk free (including Lido), we’ve researched (and will-continue researching) the best strategies for the DAO. Ultimately, these strategies will be decided on by the DAO. If you’d like, you can also develop your own and submit them to the DAO, once we have the infrastructure set up.--“Can you go a bit into the mechanics of how you'll handle KYC reg compliance? Who have you selected to handle the onramp? By what means will they verify U.S. residency status?”--Not sure I fully grasp this question. Assets entering NTM are no different than the ether sitting in the treasury being sent to Lido. Lido is just one way the DAO generates ETH, --NTM is another avenue to do the same thing through other methods in a decentralized manner. The actions performed with NTM are the same we do today to interact with Lido (depositing / sending / withdrawing).
NTM (Nouns Treasury Management) is a decentralized platform that allows Nouners to create different strategies for managing the assets in the treasury. The purpose of NTM is to make the DAO sustainable, not to turn Nouns into a financial DAO. Strategies are generated by fellow Nouners using the platform, and anyone can create a proposal to allocate funds from the treasury towards a strategy. The DAO decides the types of vaults, strategies, and the amount of funds they want to put in. The risk/reward is based on a per-strategy basis, and the DAO will ultimately decide on the strategies.
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do you at all times, promise to be credibly neutral, and a good citizen of Nouns?
The app proposed in the conversation is meant to simplify and democratize the decision-making process of how to best handle the staking of treasury assets, and then translate the outcome of that process into a transaction for Nounders to submit as a traditional proposal for vote. It does not create a separate parallel contract to the main DAO treasury contract to handle the management of a portion of the funds. The strategies are generated by fellow Nouners using the platform, and anyone can create a proposal that would allocate funds from the treasury towards the strategy.
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Thank you for the prompt reply!--“This is quite different. There is no “fund” or basket of assets that the DAO speculates on. Productizing assets currently sitting in the treasury today does not equal purchasing speculative assets with those funds. NTM manages the assets it is given by the DAO and produces yields through various strategies that accrue daily.”--Ah, a description of “decentralized yield bearing asset manager” makes me picture a DeFi Robinhood and E*Trade cross. So to confirm, with this proposed platform, there’s no possibility for users to create a strategy around allocating treasury funds towards purchasing stakes of an ERC-4626 vault holding a mixed collection Ethereum compatible tokens? --“This is a decision that is up to the DAO and outside of the scope of this proposal. The DAO decides the types of vaults, the strategies, and amount of funds they want to put in.”--Does that mean every strategy generated by this platform would go up for voting like any other proposal?--“Risk/reward is based on a per-strategy basis. For the pilot program, we’ve chosen strategies that we believe will yield a meaningful amount to the DAO while assuming low risk. While nothing is risk free (including Lido), we’ve researched (and will-continue researching) the best strategies for the DAO. Ultimately, these strategies will be decided on by the DAO. If you’d like, you can also develop your own and submit them to the DAO, once we have the infrastructure set up.”-👍--This looks interesting. I will examine it more closely and determine the extent to which it may affect my personal financial liability.
NTM is a decentralized platform that Nouners can use to create different strategies, which are a combination of on-chain transactions. Strategies are not generated by the NTM infrastructure but by fellow Nouners using it. Anyone can create a proposal that would allocate funds from the treasury towards the strategy. The purpose of NTM is to make Nouns sustainable, and it is not intended to turn Nouns into a financial DAO. Any strategy that simply bought speculative assets would likely not get voted through as it doesn't help sustainability or Nouns proliferation.
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This seems like a mechanism of essentially creating the NFT/Crypto equivalent of a Mutual Fund to hold a basket of crypto assets for the community to speculate on. What's the hard limit on the size of this fund as a percentage of treasury size? 1%? 10% 100%? What's the risk/reward curve as we move up it in relation to more stable interest bearing funds like LIDO?--Can you go a bit into the mechanics of how you'll handle KYC reg compliance? Who have you selected to handle the onramp? By what means will they verify U.S. residency status?
The Nouns Treasury Management (NTM) proposal is not about creating a mutual fund or basket of assets for the community to speculate on. Instead, it aims to manage the assets given by the DAO and produce yields through various strategies that accrue daily. The DAO decides the types of vaults, strategies, and amount of funds they want to put in. The risk/reward curve is based on a per-strategy basis, and the DAO will decide on the strategies. There is no additional KYC regulation or onramp for NTM compared to Lido. Strategies are generated by fellow nouners using the NTM infrastructure, and anyone can create a proposal to allocate funds from the treasury towards a strategy. The focus of NTM is to make the DAO sustainable, not to turn it into a financial DAO.
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