BIP-111: Removing POL from Optimism Deployment

Proposal

The proposal asks for approval for the following treasury actions:

1. Removing assets from the following Optimism deployment pools (values based on the time of writing the proposal):

   • sfrxETH/rETH/wstETH ~(8.3 sfrxETH, 3.0 rETH & 2.6 wstETH)
   • wETH/rETH ~(69.5 wETH & 66.8 rETH)
   • wETH/sfrxUSD ~(7.0 wETH & 18.4k sfrxUSD)
   • USDC/sfrxUSD ~(13.2k USDC & 26.5k sfrxUSD)
   • sfrxETH/wETH ~(8.4 sfrxETH & 2.6 wETH)

2. Swapping or redeeming the USD and ETH based assets to their underlying versions, based on MDs discretion.

3. Supplying the assets to either Aave or Balancer pools on mainnet, based on MDs discretion.

Motivation

Beets governance framework gives MDs (Music Directors) the authority to make reallocations in the treasury balance up to $200k per month, while reallocations greater than $200k require a DAO vote. Additionally, MDs are required to raise a governance vote the first time they seek to deposit assets into a new protocol.

The MDs propose ask for DAO approval for the following potential treasury moves:

1. Breaking up the aforementioned BPTs to their underlying assets.
2. Swapping/redeeming the sfrxUSD for USDC and the sfrxETH, wstETH and rETH for wETH.
3. Using the assets to make deposits on mainnet to Aave and/or Balancer v3 pools, which have been previously approved as suitable farming options for the DAO treasury.

Impacts/Risk Assessment

The proposal would approve removing ~$600k worth of assets from the Optimism deployment, bridging them to mainnet, withdrawing/swapping to the underlying assets and/or making deposits to Aave or Balancer v3 pools on mainnet.

Specification/Execution Plan

MDs would start with removing the BPTs and bridging the assets to mainnet. The decision for either swapping or redeeming to ETH and USDC would be made for each asset specifically based on the current conditions. MDs would then decide if (part of) the assets should be deposited to Aave or Balancer, for other options a separate proposal would be put up for discussion.