Increase Tarot Lend Position To 750k BEETS

This proposal aims to create a fly wheel affect utilizing the lending feature on the Tarot protocol. This affect will use idle BEETS from the treasury to loan in the BEETS/FTM Spookyswap V2 Tarot vault. The result will earn more beets for the treasury which can be used later for various benefits such as extending emissions, incentivizing beethovenX pools, bribes, etc.

Background:

Tarot (https://www.tarot.to/) is an LP leverage farming protocol that also provides lending and borrowing services in isolated pools. Tarot is a fork of the well battle tested protocol Impermax. Neither protocol has had any major security issues. Tarot has completed a Certik audit with no critical findings and 0 unresolved issues, https://www.certik.com/projects/tarot.

BeethovenX treasury had previously seeded this same tarot vault by lending 500k BEETS as per governance decree. https://snapshot.org/#/beets.eth/proposal/0x9d043f98c2c2f3bf4815b462167f94dcab4980d9071337b88f73761e6734bd5c

Treasury action:

Supply another 250k BEETS to the BEETS/FTM tarot vault. https://www.tarot.to/lending-pool/250/0xe4b58eda17f7261c6e2bf8bee87f68a18eff5739

Reasoning:

Currently the FTM supply in that vault is 25% greater than the BEETS supply. That percentage has been a continuing trend. FTM is easy to come by. BEETS however is harder to come by and a vast majority of the BEETS supplied is from the BeethovenX treasury (88% total supplied). Because beets is harder to come by than FTM, the BEETS supply amount has stagnated and is hindering the growth of more leveraged positions in that vault. Also because BEETS is harder to come by, BEETS borrow APR for similar utilization percentages as FTM, is four times higher than FTM which also hinders the growth and leveraging of that vault.

By supplying more BEETS the borrow APR for BEETS in the vault will decrease which will in turn increase the APR on leveraged positions. This leveraged APR increase will attract more people to leverage or increase their leveraged positions. This will in turn increase the demand for BEETS and the BEETS supply APR will increase. The net result is more BEETS earned for the treasury than what currently is being earned.

It is estimated that in relatively short order, if the treasury supplied more BEETS, we will soon see the return of the current supply ratios, being 25%-33% more FTM supplied. At that time governance can revisit the topic to consider yet another increase in the amount of BEETS of supplied.

Over the last month the BEETS supply APR has been averaging around 20% - 30%. It currently sits at 30% and we have seen as high as 60%. In the last 40 days the treasury has earned approximately 10k BEETS from the current Tarot supply position of 500k BEETS.

RISKS:

Besides the ever present risk of exploits that are inherent to the nature of DeFi, the only foreseeable risk is that of a liquidation short fall.

Tarot liquidations have always worked flawlessly and efficiently with only one major short fall of bad debt involving Tomb assets when the Luna meltdown triggered massive ftm liquidations. The main culprit of this however was a rather large over leveraged position of tomb assets on Market.xyz which was liquidated violently, leaving short fall bad debt on Market.xyz. The chaos then spilled over into the tarot Tomb related vaults. The BEETS/FTM vault is much smaller in value size and BEETS is not available as a collateral asset on any other major lending markets and should theoretically be insulated from such an event. Because tarot vaults are isolated, liquidations in other vaults will not affect the FTM/BEETS vault.