PoolTogether

[Proposal] Partner with Gro Protocol on Treasury Management

Hey PT community! It’s Joyce from Gro Protocol :slightly_smiling_face: It’s lovely meeting some of you in the community call last Friday!

We would like to propose helping you manage part of the PoolTogether Treasury through our risk-tranched stablecoin PWRD, which offers deposit protection while generating yield. Our goal is to make it work like an FDIC protected account but in DeFi with healthy yields.

Benefits:

  • Protect your stablecoin treasury from high-impact tail risks like the failure of a major stablecoin or protocol through (1) our Risk Balancer mechanism that ensures exposure to multiple stablecoins & protocols and (2) risk-tranching where Vault, our leveraged yield farming product, would absorb the loss for Treasury users if such failure occurs.

  • Generate healthy yields on your treasury balance especially on Prize Pool Reserves so the funds don’t stay idle until they’re deployed. With a base yield and having additional options to earn token incentives on top, Gro Protocol can provide yield generation options for PoolTogether Treasury stablecoin balance to help grow your prize pool. Details on token incentive options will be available once we complete our upcoming token launch via a Balancer Liquidity Bootstrapping Pool this month.

  • Enable further diversification of treasury assets away from native token POOL, so that the treasury balance can reliably support growth initiatives and ongoing operations of the DAO – even in a market downturn. PoolTogether Treasury has about ~10% assets (~$5.3mn) in stablecoins (ScUSDC & DAI). As token price could vary significantly with market fluctuations, allocating a larger part of it to stablecoins could ensure there are enough funds to commit to new PT projects. We understand it’s a much broader conversation than whether to allocate to us or not, but want to put this on your radar for now :slight_smile:

Suggested implementation: We suggest PoolTogether to allocate a pilot deposit that amounts to 10% of your stablecoin treasury in the Prize Pool Reserves ($108k). You could decide to increase the allocation later on after having confirmed that our treasury product meets your expectations.

Next step: This proposal should be taken into consideration alongside other alternatives and be thoroughly discussed with the PT community. The discussion could naturally occur here, but I’ll also be in the Community Call this week to answer questions where I can and bring any outstanding questions back to the team for follow-up. We’re also happy to join a community AMA with other protocols offering treasury service to discuss how we can best help PoolTogether best manage your treasury together

What is Gro Protocol?

Gro protocol is a stablecoin yield aggregator that tranches risk and yield through its PWRD stablecoin, which offers deposit protection, and Vault that provides leveraged yield farming. Our public beta was launched in mid-August 2021 following the announcement of our partnership with Argent. We have gone through three audits and currently host a Bug Bounty program with Immunefi. We are listed on Defillama and DeBank and have been integrated on Zapper. We will be launching our governance tokens through a Balancer Liquidity Bootstrapping Pool this month.

Useful links (I could only post two links, so please let me know which other links would be helpful and I’ll leave them in comments :grinning:)

Homepage: http://www.gro.xyz

Docs: Gro Protocol - gro Docs

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Thanks for the proactive reachout. The product is certainly an interesting option due to the diversification and resulting risk profile. That said, the stablecoin treasury at the moment is used for sponsorship (to increase prize pool attractivity) and not to generate yield for the treasury. The community is in the midst of exploring the establishment of a treasury management committee in conjunction with Llama DAOs research work and I would suggest that considering GRO would be in the responsibility of such TMC at given time.

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I definitely prefer keeping our treasury stablecoins within our own app contributing to growing the prize. I think the immediate benefit to our users is more valuable to us then chasing higher returns with our reserves. If down the road it makes sense for us to try and get a better return on our investment then I’m glad you made contact with us and we could definitely look into Gro protocol as one of the options for that.

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we’d love to work with the TMC on this :slight_smile: would @BraveNewDeFi be the best person for me to follow up on this?

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He’s part of Llama so he’s in general a relevant contact person for you regardless of PoolTogether. The exact formation of the TMC is TBD.

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