Restructure of Treasury Assets

Background At the time of writing the Treasury has around $1.2m in Protocol Owned Liquidity (on both Beethoven and Liquid Driver). Over the last few days there have been some discussions around restructuring Treasury Balances.

Purpose This proposal aims to allow the community to revisit what exposure the Treasury has and if it would like to move liquidity from Fantom to Optimism

Method Due to the recently launched Rocket Eth pool and the recent deployment of Hidden Hand on Optimism this creates a some time sensitivity around certain actions and therefore the proposal will be split into two phases:

Phase 1 The aim of part 1 is to divert TVL from Fantom to Optimism in the form of transferring the A Late Quartet, Yearn Boosted to the Rocket Eth pool. There is currently $269k in the pool, representing a little over 20% of Treasuries Protocol Owned Liquidity. By doing this Treasury will still have exposure to interest bearing tokens (through rETH) and will also be able to farm BAL. This allocation is not fixed and Part 2 of the proposal will allow the reallocation of this balance to other pools (for example like stETH)

Things to consider

• Due to the upcoming new pool factories, there is already a need to start thinking about where to move the old boosted pool balances
• If approved, part 1 of the restructure will result in more than 20% of Protocol Owned Liquidity having full exposure to the price of ETH
• The treasury will hold liquidity on multiple networks
• The probability of rETH losing it's peg or having it's staking rewards slashed
• The community can update the allocation to the pool as part of Phase 2
• The timing of Phase 2 implementation will be dependent on when the new pool factories are deployed

As per the agreement with Balancer, all farmed BAL will be bridged to mainnet in order to mint veBAL. The will happen at least quarterly, but the liquidity committee will aim to do it monthly