PTIP-54: Treasury Assets Management #1

Governance PT Improvement Proposals
1

PTIP-54

Simple Summary

We are looking to increase the yield obtained by treasury assets while also keeping a low-risk profile and trying to shift more attention to V4 instead of V3.

Abstract

This proposal will move the funds from PoolTogether V3 to PoolTogether V4 and Notional.

We will also be transfering TRIBE rewards from the LAAS program to the executive team. This TRIBE will be then staked to earn around 29% return.

Apart from those transactions, this PTIP will also withdraw $16K USDT on Polygon from PoolTogether V3 Reserve and swap it to USDC. Afterwards it will be deposited as prize liquidity into V4 (not delegated to any address). These transactions will be done by the Executive Team.

Motivation

For a long time PoolTogether Treasury assets have been sitting on V3. This incentivizes prizes on V3 while also generating some yield for the PoolTogether protocol. PoolTogether V4 has now been live for almost 4 months now, however, we have not shifted the attention of Treasury funds to V4.

By moving sponsorship funds from V3 to V4 we will increase the TVL and invite more users to use V4 instead of V3. Apart from that, we will also earn a higher yield for the treasury, as all the amount earned will be directly received by the treasury.

By depositing also on Notional we are looking for earning around 9% APR on stablecoins, which is significantly more than the 3% to 4% that AAVE is offering.

Specification

Overview

This proposal will withdraw the current USDC and DAI reserves, as well as the USDC sponsorship, and move those to V4 ($3,290K USDC) and Notional ($480K DAI and $500K USDC).

Rationale

Multiple protocols have been discussed as valid alternatives to deposit PoolTogether Treasury funds into. As outlined in this governance forum post (Treasury Assets Management #1), after a previous analysis Notional has been picked to deposit around 23% of the stablecoins, while the rest is put in PoolTogether V4.

Technical Specification

On-chain transactions to be performed:

  1. Withdraw $2,842K scUSDC from V3 Sponsorship

  2. Withdraw $948K USDC from V3 Reserve

  3. Withdraw $480K DAI from V3 Reserve

  4. Approve USDC in V4

  5. Deposit $3,290K USDC in V4 (not delegated to any address)

  6. Approve USDC on Notional

  7. Deposit $500K USDC on Notional

  8. Approve DAI on Notional

  9. Deposit $480K DAI on Notional

  10. Transfer 36,467 TRIBE to executive multi-sig

Status

  • Yes
  • No

0 voters

5 Likes
2

If we want to combine these vote with PTIP-55 we will need to remove two transactions so that the POOL transfers can be in here. The total maximum transactions is 10.

I’d advocate removing the USDC deposit onto notional to make it all one!

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3

I posted this comment on the discussion thread but I wanted to post here for historical reasons…

I think moving the reserves is more delicate than everything else in this proposal because the reserve rate was explicitly activated with the idea of building the perpetual growth machine. The reserves are very different from sponsorship and I think we should be thoughtful about how those get utilized and when they get moved.

Additionally, if we are going to remove the reserves I think we should correspondingly change the reserve rate to 0%. I think that is sensible and fair to those depositors.

I know this is late but I did want to re-post this here as I did on the original thread.

2 Likes