PoolTogether

PTIP-46: Forming the Treasury Working Group

PTIP-46: Forming the Treasury Working Group + Deliverables and Budget

Simple Summary

Create a community-driven Treasury Working Group (TWG) to focus on research and analysis. The TWG can provide value by exploring changes to tokenomics, incentives, and capital management strategies for treasury funds, primarily the POOL within the treasury. If approved, the TWG would operate for a trial period of one quarter.

Abstract

The working group will provide insight on potential capital management decisions, identify and assess risk when funds are deployed outside of the PoolTogether smart contract system, and negotiate deals on behalf of the DAO. If deals were negotiated, the TWG would present the community with a term sheet that would be put to a governance vote. The TWG would have no power to execute and would have no custody of treasury assets. Any proposed strategies or analysis shared with the PoolTogether community would serve to empower members and give them data-driven guidance when discussing such proposals.

The TWG would be composed of community members with expertise on composability within DeFi, finance, capital management, and risk management. Members would contribute when their expertise brings value to the PoolTogether community.

The TWG would respond to treasury or tokenomics related forum posts with analysis and insight; members of the TWG would share progress on the weekly community calls.

Motivation

As PoolTogether expands to other chains, offers various protocol incentives, and grows protocol controlled value (PCV), the community will need regular review and analysis to provide information on proposals and PTIPs that relate to the use of treasury assets. If PTIPs are passed and executed, PoolTogether will also need a dedicated group to analyse the value add of such programs.

The number of treasury related proposals on the forum is on the rise. Of the last seven PTIPs, five have been related to protocol incentives for V4, PCV, and migration incentives to move deposits from V3 to V4. Having a TWG that can give the community the information they need to make informed decisions will be crucial as the DAO grows; after such proposals are passed, members of the TWG can gauge their impact and provide data on the value added or removed from the protocol over time.

Our core purpose would be:

  • Ensure safety and prudence go into every decision
  • Drive future protocol growth
  • Identify sustainable solutions
  • Present objective data to the community

Moreover, all efforts of the TWG will drive growth in prizes, which can then accelerate the growth flywheel that is paramount to PoolTogether’s goal of reaching $1B TVL.

Specification

The TWG would be composed of eight people including a Llama seat. The TWG will have a chair who coordinates communication, posts feedback/comments on the forum, and maintains close communication with the PoolTogether Inc. team to ensure both the TWG and the protocol are working toward the same goals.

TheRealTuna is the proposed chair, and the following community members would serve on the TWG:

  • Regisisland
  • Mkkoll
  • Gabor
  • Drcpu
  • Underthesea
  • Torgin
  • Llama seat (rotating)

The TWG will be responsible for responding to forum posts with the requisite information the community needs to have informed discussions on treasury/tokenomics related matters. Members would share updates on the Friday community call every week; at least one member on the TWG will connect with Leighton and Brendan to share updates as needed to ensure the TWG is aligned with PoolTogether Inc.

In the long-term, the TWG can evaluate the steps the protocol needs to take to get POOL listed on reputable lending platforms. Exploring ways to increase PCV and add value/utility to POOL will also be essential to the mission of the TWG. All of these come back to the fundamental goal: using treasury assets to grow the protocol.

In the first quarter, the TWG will focus on the following high level deliverables:

  1. Fast track analysis of Fei Protocol to understand how the PCV and bonding curve are used to maintain FEI’s peg; review Fei Protocol’s use of oracles; and review existing FEI liquidity on Uniswap V2. This analysis should provide the community with greater insight to FEI’s stability, use or oracles, and the depth of liquidity within Uniswap V2 before $1.5m in POOL is deployed in a variable rate position on Ondo Finance.
  2. Analyse the use of stablecoin assets within the treasury to accelerate growth on PoolTogether V4. Currently, there is 3,773,686.58 ScUSDC deposited in V3, which can better serve the protocol elsewhere. Since stablecoins play a vital role in the growth of V4, the TWG can research ways to leverage V4 functionality to further incentive deposits using stablecoin assets/reserves in the treasury.
  3. Pursue a listing for V4 tickets as collateral on reputable lending platforms and evaluate ways to increase the composability of PoolTogether deposits.
  4. Review the efficacy of the Olympus Pro bond sale and any subsequent proposals passed to increase liquidity without using POOL liquidity mining incentives. As the protocol pursues more DeFi 2.0 approaches, it will be vital to measure their impact and value delivered to the protocol.

The above would be the main deliverables for the first quarter of operation.

Overview

The TWG will consist of community members with a wide range of expertise. As such, we can get a variety of opinions from knowledgeable users with a deep understanding of DeFi composability, capital management, and risk management to ensure all aspects of a proposal are taken into consideration before the TWG provides the community with an informed, data-driven response.

Members will contribute when/where they offer the most value; this means some members may contribute more than others during certain periods, while the contributions may shift in the other direction depending on the expertise required. The TWG collects subject matter experts from the community and puts them to work, while freeing up members of the core/operations team to spend more time focusing on building.

If approved, the TWG would begin with an initial trial period of one quarter, which would end as of March 31, 2022.

The first quarter budget requested is 2250 POOL/quarter, or 750 POOL/month. This POOL will be distributed on a monthly basis using Coordinape to determine the allocation of 750 POOL among contributors.

To compensate members for their work to date in establishing the TWG, the members propose an initial one time 250 POOL to be allocated in a short epoch lasting no more than 72 hours upon funding.

To gauge community sentiment, we would like to conduct a temperature check Snapshot vote. If we have majority support, the TWG can acquire funding from the dormant POOL sitting in the Polygon Ops multi-sig wallet. The TWG proposes the use of a Gnosis Safe 4/7 multi-sig to custody operational expenses on Polygon. This will reduce the gas cost associated with monthly distributions to working group members.

The TWG will need to create a multi-sig wallet and create a Coordinape circle to facilitate total distribution of POOL each month and to distribute the POOL allocation on Polygon.

Rationale

Members would form a Coordinape circle to allocate funding on a monthly basis. Coordinape gives the TWG flexibility, where members can keep track of contributions using Notion and vote based on contributions at the end of the month to allocate pay to those members who delivered the most value to the TWG.

A 4/7 multi-sig would be required to custody operational funds, which would be dispersed after Coordinape allocations are determined. The TWG would use a Gnosis Safe multi-sig on Polygon to reduce the cost of transaction fees over time.

The details included to date fall in line with the original [Proposal] Forming the Treasury Working Group, where the community provided supportive comments and 100% approval via a signalling poll 19 community members voted on.

Details regarding budget allocation and distribution of payment will be outlined further below.

Status

The PoolTogether community can review the previous post regarding the formation of the Treasury Working Group to gauge initial sentiment.

Pending community feedback we will create a Snapshot vote to perform a temperature check.

Snapshot vote is now live!! Treasury Working Group snapshot vote is live. Please go vote everyone!
https://snapshot.org/#/poolpool.pooltogether.eth/proposal/0x4dc61f3f3de1abcaef31ebc94b1b5368a73504e78cf7691ca3d9eb71800f454f

Do you support this proposal?
  • Yes
  • No

0 voters

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Snapshot vote now live!
https://snapshot.org/#/poolpool.pooltogether.eth/proposal/0x4dc61f3f3de1abcaef31ebc94b1b5368a73504e78cf7691ca3d9eb71800f454f

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