DAO Money Printer go BRRRRR?

Author: noahns#1723

Gotchi ID: 3267 (The Bearded Lady)

Discourse thread: https://dao.aavegotchi.com/t/dao-money-printer-go-brrr/

DO YOU LIKE YIELD?? If so, vote yes.

Tl;DR: let’s make our inactive DAO funds earn yield, staking GHST for FRENS, and Dai on Curve

Summary: The DAO treasury gets a cut of all Curve fees and all baazaar fees, and has grown into approximately $500k worth of GHST and $1m worth of Dai. These funds are currently not being used for anything. As a responsible DAO, we should ensure that these funds are being maximized in a safe manner.

This proposal suggests that we take the first step towards becoming a financially-active DAO by generating yield on our funds.

For the GHST, I propose that we stake the DAO's GHST in the Aavegotchi FRENS single staking contract. This is risk free, and will start generating a significant amount of FRENS. Of course, we don’t have to use them if people are worried about diluting their own FRENS/raffle tickets, but by generating FRENS we’ll have options in the future to do airdrops/giveaways to promote Aavegotchi through the polygon community. To repeat, this proposal is only to start staking FRENS, not to actually spend them on anything.

For the Dai, I propose we put the funds into the Curve Aave pool, which generates yield on stablecoin assets. For those unfamiliar, the Curve Aave pool is a pool with aUSDC, aUSDT, and aDai -- all USD stablecoins. From an impermanent-loss perspective, this is essentially risk free since it’s just stablecoins in the pool, and Curve has established itself as a pretty safe protocol over the last several years. The Curve site currently shows that the Aave pool is returning approximately 8% APR returns, through a combination of Aave fees, CRV rewards, and WMATIC rewards. This would give the DAO additional funds for future projects.

Some community members expressed concern on Discourse about sending funds to a non-Aavegotchi protocol. My understanding is that Curve has been heavily audited, and has not had any major issues over the last several years. However, another option would be to put Dai directly into Aave (which would be significantly less yield), or not to do anything with the Dai for now. I’m hoping we can discuss this further at the discussion thread above.

WAGMI frens!