Vote 018D: Whitelist Leveraged Compound lending strategy for use in Gro protocol

TLDR: This proposal sets out selected yield strategies for whitelist and approval for use in Gro protocol

Original community forum post here: https://community.gro.xyz/t/vote-18-gro-protocol-strategy-selection-whitelist-2/361

Background and summary

• Gro DAO whitelisted 6 strategies in May 2022 for Gro protocol to use
• Proposal for the DAO to whitelist further strategies
• Protocol funds will continue to be allocated in accordance with the existing framework of (1) pool depth and (2) yield, as set out in the Gro protocol docs

Vote 018D: Whitelist Leveraged Compound lending strategy for use in Gro protocol

Prior to the introduction of Convex strategies, Gro protocol successfully used two lending strategies without any issues: Aave and Leveraged Compound. These have not yet been formally whitelisted by the DAO.

Proposal that Gro DAO approves Leveraged Compound lending strategy for use in Gro protocol with (1) a maximum Vault exposure of 50% and (2) a stop-loss in place in case of significant de-peg

More information on Compound

• Compound protocol is a non-custodial protocol for liquidity providers and borrowers, it primarily facilitates lending and borrowing activity
• Compound has been live for 28 months with a DeFi Safety score of 93% and TVL of $2.8bn
• Compound has been audited by OpenZeppelin and Trail of Bits
• Link to app: Compound
• Current USDC, USDT, DAI un-leveraged yields: 0.62% - 1.83% (leveraged yields expected to be higher)

Voting process

FOR: Approve the strategy for whitelist on Gro protocol AGAINST: Do not approve the strategy for whitelist on Gro protocol ABSTAIN: No opinion on approving this strategy for whitelist on Gro protocol

Next steps

This vote will run for 3 days.

Each strategy that receives majority approval (ignoring abstain votes) will be added to the protocol whitelist, meaning there is DAO authority to allocate protocol funds (within the maximum Vault exposures).

Future strategies can be suggested and voted on by the DAO, and at any time community members can also propose a removal of a strategy from the current whitelist.