Name: Use CEF Funds to Participate in Citadel Knighting Round
Contributors: gdalf and Mitch from the Citadel Team completed a peer review
Category: Community Ecosystem Fund (CEF) allocation
Scope: This RFC proposes to use a portion of the RenBTC in the Community Ecosystem Fund (CEF) to further participate in the CitadelDAO Knighting Round 1. Specifically, it is seeking a community weighted-average vote to allocate 15%, 20%, 25%, or 0% of the total RenBTC in the CEF.
This is a proposal to add a portion of our RenBTC funds to the Citadel Knighting Round 1. This proposal follows previous discussions in RFC-035 which largely has community support. The key pieces of feedback received are:
- Great to support of partner protocols (especially ones that integrate RenJS)
- This will add additional streams of BTC income to the CEF
- Its just a portion of CEF, and not going “all-in” (20% seemed about consensus, but let’s see how the vote goes)
- The voice against the RFC did not like the idea that Citadel will not allow for redemption of BTC once deposited. While a reasonable concern, the counter-argument is that the BTC will be put to work (in sometimes illiquid strategies) and that it will also take RenBTC off the open market, causing Mint demand to increase.
For background, please refer to RFC-035:
I will keep this section light, as you can read all the full details in the link above. Here is the bulleted-synopsis for a quick glance:
- CitadelDAO is a treasury DAO aiming to be the largest community owned yield-generating Bitcoin position in the world (yes, Luna Foundation is not the only one aiming to create a multi-billion-dollar community-owned BTC position )
- Imagine Olympus DAO’s bonding mechanics crossed with Curve’s tokenomics with the aim of creating sustainable yield-generating BTC positions across DeFi
- They intend to integrate RenJS, as well as leverage RenBTC for natice BTC funding/withdrawals
- The launch event is coming up and Ren (both our users and Community Ecosystem Fund-CEF) is 1 of 8 protocols whitelisted to participate. There are no VCs or early investors
- RenDAO will already receive a portion of the 5% vlCTDL allocated for partners (based on the number of voting participants) but I am proposing we use some of our CEF Funds to further participate in the funding round
- The funding rounds will be accepting BTC-equivalents in round 1 and yield-influencing assets in round 2
- I propose we use some of our RenBTC CEF funds worth $500k to further participate in Round 1. I am proposing 15%, 20%, or 25% (or ~$75k, ~100k, $125k respectively) as the initial options, but appreciate feedback in the comments.
- In exchange, the RenDAO receives vlCTDL, which will yields 1) Boosted CTDL emissions 2) a share of funding revenue paid in BTC 3) a share of treasury yield paid in BTC and 4) Citadel governance rights
- By holding vlCTDL, RenDAO will have governance rights to propose RenBTC yield-generating strategies in the future
- Vote on the Snapshot to participate in Citadel’s Knighting Round 1
- If accepted, have the Yield-Ops group handle the manual transactions