PTIP 65: Treasury Working Group Second Quarter Renewal
Simple Summary
The Treasury Working Group (TWG) was formed after PTIP-46 was passed. Initially, the TWG was funded with 2250 POOL for our first operational quarter, plus 250 POOL for retroactive pay. Now that the TWG’s first operational quarter is complete, members are seeking renewal for a second quarter and a budget request of 12,820 POOL/quarter, as well as 3,000 USDC (1 ETH value) for PTIP gas costs.
If this PTIP is approved, the TWG’s second quarter would retroactively begin on Monday (14 March 2022).
Abstract
The TWG reviewed our first operational quarter performance and outlined our second quarter deliverables in the (RFC) Treasury Working Group | Second Quarter Renewal forum post.
Per our original proposal, the TWG’s core purpose is to:
- Ensure safety and prudence go into every decision
- Drive future protocol growth
- Identify sustainable solutions
- Present objective data to the community
In keeping with our core purpose, the TWG will focus on the following high level deliverables, which we’ve identified as top priority for our second quarter:
- Exploring protocol-owned liquidity solutions (POL)
- Identify new yield sources
- Prize tiering, simulation
- Non-stablecoin asset management
- Leveraging TWAB, Delegated Chance to Win for Growth
TWG Membership
In our second operational quarter, @BraveNewDeFi will be the proposed chair and, if approved, he will take on the TWG Chair role. He would be responsible for coordinating communication, posting feedback/comments on the forum, and maintaining close communication with the PoolTogether Inc. team to ensure both the TWG and the protocol are working toward the same goals.
In our next quarter, the following TWG members will remain as contributors:
- underthesea
- drcpu
- TheRealTuna
- BRONDER
- BraveNewDeFi (Llama)
- yuan-han-li (Llama)
We are also looking for an addition 1-2 members who would like to contribute to the TWG; total membership will likely be between 7-8.
Motivation
The TWG provides objective analysis and data for any governance proposal or forum post that discusses a potential use of treasury funds. During our first quarter, the TWG provided analysis on POL initiatives, which were shared and noticed outside of the DAO.
Members of the TWG have played a vital role in governance discussions regarding prize tiering and simulation. In our first quarter, we reviewed stablecoin asset management approaches and proposed PTIP: 54: Treasury Assets Management #1, which was passed by the DAO to add productive assets to our treasury and use USDC to generate interest for prizes in V4. For a full review of our first quarter performance, see the (RFC) Treasury Working Group | Second Quarter Renewal.
For our proposed second quarter, the TWG will focus on pressing issues for the DAO: namely, POL solutions that don’t come at a significant cost to the protocol and identifying new yield sources to increase yield and reduce the TVL benchmarks PoolTogether needs to reach in order to achieve profitability.
The TWG will also make some deliverables core duties of the working group, like prize tiering/simulation analysis and asset management. Now that stablecoin assets have been deployed into productive strategies, the TWG will turn our focus to the optimal use of non-stablecoin treasury assets.
We’ll also work with other working groups within PoolTogether, such as the Marketing Working Group (MWG) to determine how the protocol can leverage the TWAB contract and the mutli-delegator contract to achieve growth in deposits.
In our second quarter, the TWG will deliver on our core purpose, while providing DAO members with the objective analysis and insight necessary to make informed decisions on treasury-related governance proposals.
Specification
In our first quarter, the TWG requested a budget of 2250 POOL/quarter, with an allocation of 750 POOL per month that was distributed via Coordinape. The TWG also requested 250 POOL for our efforts to establish the working group and provide analysis before the working group was passed through governance.
Over the course of our first quarter, 750 POOL were distributed among active contributors each month.
When our first budget was requested, POOL was ~$9/POOL. The TWG chose to be paid in POOL to align incentives with the DAO. The total quarterly budget was $20,250 USD, or $6,750/month. During our first quarter, the average contributor received $234 in POOL for their monthly contribution due to the change in POOL prices.
For our second operational quarter, the TWG is seeking $30,000 in POOL, which is equivalent to 12,820 POOL/quarter, or 4,273.33 POOL/month. We still believe payment in POOL aligns incentives with the community and drives us to work for the betterment of the protocol. An increased allocation to our budget is intended to reduce the churn of contributors and provide incentives for 6-8 contributors, so we can expand the scope of the TWG’s analysis and core duties.
If this PTIP is approved, our second quarter would retroactively begin on Monday (14 March 2022).
Compensation for On-Chain Governance Gas Costs
@underthesea spent a total of 0.1574 ETH in gas costs for submitting on-chain proposals on behalf of the TWG. The relevant transactions are included here 1 and here. We request retroactive compensation for underthesea’s gas costs, as submitting on-chain PTIPs was not initially in the scope of the TWG. When we first formed, we were to provide analysis but have no execution power.
Going forward, the TWG will take on the responsibility for putting votes on-chain in the second operational quarter. There will be additional gas costs associated with submitting on-chain proposals, so we are requesting a 3,000 budget in USDC that will be used to acquire WETH that is held in the TWG multisig; some of this funding will go to reimbursing underthesea, as well. Any WETH that is not used for executing on-chain proposals will be returned to the treasury or rolled over at the end of the operational quarter.
TWG Gnosis Safe on Ethereum
In the TWG’s first quarter, funding was directed from the Polygon Executive multisig, which was on Polygon. Since this distribution will be on mainnet, funds will be held in a 3/5 Gnosis Safe with the following signers:
- BraveNewDeFi - 0x06223C0093Fc9FC872C8968BF13a15AE18f2484f
- BRONDER - 0x3bc1158e5bcE8c10e5DA0EdFBB94b261eec46A76
- underthesea - 0x93146d9978d286EE085ba68eE1786a0b6EDA64EC
- drcpu - 0xC734011dBd90677eb42C0F93827665F0ddaed46F
- TheRealTuna - 0xa31c2232842e631cCb2d2E4110B356Bab21E6020
PTIP gas reimbursement and Coordinape funding will be distributed from this multisig.
Technical Specification
- Withdraw [3,000] 3000000000 PTaUSDC from the prize pool
- Transfer [3,000] 3000000000 USDC to TWG multisig
- Transfer [12,820] 12820000000000000000000 POOL to TWG multisig
TWG multisig address: 0xB74659A1011F6DCA3BA6F6e22a71bA8f414F36A1
Simulation of Funding from Governor Alpha contract to TWG multisig
Status
Depending on what stage the proposal is in you must include:
- On-chain proposal: PoolTogether Governance
- POOL Pool Snapshot vote: Snapshot