BIP-76: Deposit Treasury Funds into Gyroscope Pools

Voting ended about 1 year agoSucceeded

Summary

Use a portion of the DAO Treasury funds to form positions in Gyroscope E-CLP, 3CLP and 2CLP pools on Opera and Sonic.

Proposal

This proposal would grant Music Directors the ability to move treasury assets to Gyroscope E-CLPs, 3-CLPs and 2-CLPs on Optimism, Opera and Sonic. For such a scope extension, a governance approval is required prior to Treasury funds being deposited with a new protocol.

The proposal also includes a first action of moving $20k in FTM to the sFTMx/wFTM E-CLP on Opera and $20k to the lzUSDC/axlUSDC/USDC.e 3-CLP on Opera. This is done within the existing Treasury and Risk Framework as approved by BIP-57, where such positions fall under Risk Level 2, Tenet 3.

Motivations

This proposal is also referring back to BIP-48, where the DAO decided to deposit funds to the Gyroscope E-CLP wstETH/wETH pool on Optimism. As BIP-48 focused only on E-CLP pools on Optimism, the motivation of this proposal is to extend the liquidity pool scope to include 3-CLPs and 2-CLPs and the chain scope to include the Fantom Opera and the future Sonic chain.

The proposal’s intention is to start with funding the pools described above already on Opera, in order to already gain helpful insights on the performance and parameters before the launch of Sonic. With Sonic's launch fast approaching, these deposits on Opera will help to fine tune the deployment of these pool types prior to re-launch on Sonic.

Granting the ability to deposit DAO Treasury assets within Gyroscope pools on Optimism, Opera and Sonic allows for an additional source of trading fee earnings. It also demonstrates support for protocols built on top of Balancer/Beethoven-X and may contribute to a stronger business relationship with Gyroscope.

Impacts/Risk Assessment

Moving Treasury assets as proposed introduces an added layer of smart contract risk specific to Gyroscope's E-CLP, 3-CLP and 2-CLP technology. Gyroscope’s E-CLP, 2-CLP and 3-CLP pools underwent auditing by Nethermind and Trail of Bits in August and September of 2022 (refer to audit reports further below).

This proposal also entails taking on smart contract, organizational, and market risks of holding and LPing LayerZero’s bridged USDC (lzUSDC), Axelar’s bridged USDC (axlUSDC) and Wormhole’s bridged USDC (USDC.e).

Specification/Execution Plan

If this proposal passes, MDs would have the ability to deposit DAO Treasury funds within Gyroscope E-CLPs, 3-CLPs and 2-CLPs on Opera and Sonic.

$20k in DAO Treasury FTM would be deposited into the Gyroscope sFTMx/wFTM E-CLP on Opera. $20k in DAO Treasury USDC would be deposited into the Gyroscope lzUSDC/axlUSDC/USDC.e 3-CLP on Opera.

All movements of assets would be within or between the DAO Treasury addresses.