[OIP 3: Add a new treasury asset]

Summary Diversify treasury by market buying our next asset with the equivalent of 47.28 ETH ($159,806 at time of writing) within a 1 week timeframe.

Background DiamondDAO currently holds approximately $3,186,790.05 market value of treasury assets which is made up of: $322,930 in Frax Share(FXS), $296,500.17 in Curve(CRV), $1,017,950.00 in DMND, $538,790.00 in Magic Internet Money (MIM) and $1,010,620.00 in ETH.

The goal of Diamond DAO is to collect DeFi diamonds. With this in mind, we would like to swap 47.28ETH (5% of treasury) for a new treasury asset. We have a couple ideas:

Liquid Staked token aETHc

aETHc (formerly $aETH) is a reward-bearing certificate that enables instant liquidity for staked $ETH tokens in Ethereum 2.0 network. aETHc represents the staked ETH plus all future staking rewards. Initially, at the start of Eth2 staking on December 1st 2020, aETHc was issued at a ratio of 1:1 to the amount of staked ETH. The amount of aETHc you hold will not increase. Instead, the price of aETHc is expected to grow in ETH value, as your aETHc contains your principal stake plus earned staking rewards. At the end of the staking period (projected for 2022) you can redeem your aETHc for your original staked ETH plus your staking rewards (which are expected to be around 15% in the first year).

The case of Liquid staking through Convex Finance

With the beacon chain coming close to merging with mainnet, we see a great opportunity to be exposed to liquid ETH2. We prefer not to lock in directly through ETH2 due to capital inefficiencies to keep our assets liquid. After purchasing Ankr’s aETHc (base 5.24% APY) from stakeFi.ankr.com/liquid-staking, we would stake it on https://www.convexfinance.com/stake to earn yield (additional 5.36%).

This crvAETHc token represents a Curve liquidity pool. Holders earn fees from users trading in the pool, and can also deposit the LP to Curve's gauges to earn CRV emissions. This pool contains ETH and aETHc, a token that represents staked ether in Ankr StakeFi, an ETH 2.0 staking platform.

Strategies

Supplies ankrCRV to Convex Finance to earn CRV and CVX (and any other available tokens). Earned tokens are harvested, which is deposited back to DiamondDAO’s treasury.

The case for Liquid Staking through OnX Finance

After purchasing aETHc (base 5.24% APY), we would add equal parts ETH/aETHc to Sushi LP and receive an aETHc LP. We can add it to OnX Finance to add yield in the form of xSushi (autocompounded), Sushi LP fees for an additional 4.54% at time of writing.

Proposal Should we acquire liquid staked ETH2 token aETHc to stake on Convex Finance, OnX Finance or do nothing?

Vote Add liquid aETHc to Convex Finance Add liquid aETHc to OnX Finance Do nothing and keep unstaked ETH