[WIP #19] - Earn Yield on Part of our ETH and BTC

Type of Voting: Single Choice Voting

Choices:

YES (A) - Invest in GLP and keep exposure to BTC and ETH unchanged YES (B) - Invest in GLP and lower exposure to BTC and ETH NO - Do not invest in GLP

Forum History:

[WIP] Earn Yield on Part of our ETH and BTC (https://www.wonderlandforum.xyz/t/wip-19-earn-yield-on-part-of-our-eth-and-btc-using-glp/19323) [RFC] Earn Yield on our 25m in ETH and BTC (https://www.wonderlandforum.xyz/t/rfc-earn-yield-on-our-25m-in-eth-and-btc/19238) [DAO Discussion] Tokens Wonderland Should Consider Investing In 10 (https://www.wonderlandforum.xyz/t/dao-discussion-three-tokens-wonderland-should-consider-investing-in-a-framework-for-community-led-investment-proposals/18460)

Proposal Summary:

Wonderland should earn a yield on part of its BTC and ETH position. It can do this by diverting BTC and ETH to mint GLP, a token paying 15-20% yield on the GMX platform. For more information on GMX's GLP token, read the DAO Discussion and RFC (note especially the articles referenced in the DAO Discussion).

Based on feedback, the ideal position size for GLP would be $12.5m in value, to keep our risk diversified. In future, Yieldchad's hedging strategies will ideally also hedge out more of the price-risk of this strategy.

As GLP is about 55:45 BTC/ETH:Stablecoins, minting GLP by using only BTC and ETH would reduce exposure to BTC and ETH (for e.g., if you exchange $1 in BTC for $0.50 BTC and $0.50 in Stablecoins, this reduces your exposure to BTC by half). Instead, Minting GLP using a mix of stablecoins and crypto would allow Wonderland to maintain the same exposure to BTC and ETH as it currently has. Whether or not Wonderland should maintain or lower its BTC/ETH exposure is also being voted on through options Yes (A) and Yes (B). Snapshot Details:

The outcome of this vote will not be decided based on which option attains a simple majority. Instead, note whether the sum of votes for the YES options exceeds the sum of votes for the NO option. If so, Wonderland will mint GLP. From there, consider which YES option was more popular and abide by that option. To illustrate, if the vote is split 32-28-40 between YES (A), YES (B) and NO, it is YES (A) that wins the vote by the process above.