Yield ops call #003 - 5 April 2022

DAO Working Groups Yield Ops
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Previous call

Yield ops call #002 - 22 March 2022

Agenda:

  • Yield strategy execution
  • Liquidate part of our renBTC to stables in anticipation of yield strategy?
  • Community communication and feedback

Meeting notes

  • Yield strategy execution

    • Long term strategy

      • We were talking about farming the USDC/renUSDC pool on Solidex as it has three benefits: using Ren Bridge 3.0, promote Ren asset liquidity, high yield
      • We think we can expect a very competitive APR (in the range of 20% depending on conditions, given our historic yield on the BTC pool and the recent trajectory)
      • We decided this is where we want to go (barring any new information)
      • But Ren Bridge is not ready yet, and we don’t want to wait idle too long either
      • Max has a call tomorrow and then he can let us know what to expect, and we can decide if we want to go for an intermediate farm in the meantime

    • Intermediate term strategy

      • We don’t want to wait much longer on Ren Bridge with our funds idle, this means we can potentially have ~2 weeks for farming while we wait
      • We agree on moving the funds somewhere temporarily until Ren Bridge is ready, so we just need to find the pool
      • For this to be profitable we just want to deposit and not have to do (many) swaps
      • Preferable a single pool in Curve or Badger
      • Idea: put some options in the treasury chat and have a vote, alternatively if we can figure it out we don’t need to
      • Idea: seed curve pools on other chains? Given our mandate this is only a viable option if we get decent yield, which is why we are most interested in the Solidex stables option
      • Idea: partner with KeeperDAO as they control a lot of Convex voting power
      • Fantom is a good choice too as we want to go there anyways for Solidex
        • Badger vaults on Fantom are still in guarded mode, want to stay away from that for now
        • APR on BTC vaults is quite low
      • Options on Ethereum:
        • Native Badger vaults
          • High (boosted) APR
          • We don’t want to switch out of BTC if its only for a short amount of time
        • ibBtc vaults
          • Very low APR if we do not boost with native Badger
        • Tricrypto
          • we can swap to wBTC and deposit that directly
          • would be exposed 1/3 to USDT, want to go partly to stables anyways for the Solidex move
          • Pool will yield around 17% APR, or about 1100 USD per week for us
          • Will need about 6 txs to go in
          • and another 4 txs to go out (plus additional 6-7 txs to liquidate the rewards)
          • Would just about make back our gas fees
          • But would also be a good exercise
      • We like the tricrytpo option best

    • Conclusion

      • Ultimately we want to go for the Solidex stable option
      • Max will let us know tomorrow what we can expect regarding the Ren Bridge
      • Then we make a decision if we want to go for the Tricrypto pool in the meantime
      • Even if we end up loosing a bit on gas fees it is not the end of the world, would also be a good exercise for us

  • Liquidate part of our renBTC to stables in anticipation of Solidex yield strategy

    • Touched upon this in the discussion above
    • Don’t want to liquidate now, rather join the tricrypto pool if we can, which in effect would already give us 1/3 stable exposure

  • Community communication and feedback

    • Thomm posited an idea to change how we work/come to consensus on decisions
    • Goal is to engage more with the community, and provide a structure in which the community can participate, provide feedback, and have an official path for recourse
    • Just a long term idea on where we might want to move to, inspired by KeeperDAO and BadgerDAO
    • Idea is to have a process roughly consisting of the following steps:
      1. Working group has internal discussion on a particular plan
      2. Draw up rough plan of action (e.g. farm using tricrypto for the next 3 months)
      3. Communicate plan with community and open RFF (Request For Feedback) channel where the community can give input and we can collaborate with a wider audience
      4. Working group has final say in whether to incorporate any of the feedback
      5. Post final plan on the forum and snapshot vote following the “rule of non-opposition”
        1. On non-opposition: execute on plan
        2. On opposition: back to the drawing board
    • Idea is received generally well, but want to be careful we don’t try to overhaul our governance process by ourselves
    • We can experiment in a limited way within our group and take it from there, e.g. start with RFF
    • Thomm will work out the idea more and share it, as well as some links for reading material

Action items

  • Max will report tomorrow (6 April) on the status of the Ren Bridge, then we will take a decision regarding the Tricrypto pool
  • Thomm will share some links with reading material regarding related governance processes
  • Thomm will work out the working group process idea to share with the group

Tentative agenda next meeting

  • Execute on Tricrypto/Solidex strategy
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