HIP-7: stHAIRway to Heaven

Background

Today, we announce the stHAIRway to Heaven. As our treasury now exceeds $400,000, we seek to make our capital more productive, whilst keeping it in relatively low-risk assets.

Three-part strategy

1. Swapping 25% of the current ETH treasury from ETH -> wstETH
2. Swapping 25% of the current ETH treasury from ETH -> rETH
3. Maintaining these tokens in the following Balancer Stable Pools

• WETH-wstETH
• WETH-rETH

wstETH

wstETH is consistently earning ~5% APY. On 25% of the treasury, that would earn a yield of 2.5 ETH/year, around $5k/year. wstETH has steadily increased in price relative to ETH, despite some temporary depeg events, and remains one of the most trusted liquid staking tokens in the Ethereum ecosystem

rETH

rETH is consistently earning ~5% APY. On 25% of the treasury, that would earn a yield of 2.5 ETH/year, around $5k/year. rETH has steadily increased in price relative to ETH, and remains one of the most trusted liquid staking tokens in the Ethereum ecosystem.

Balancer Stable Pools

1. The wstETH-WETH Balancer Pool is yielding 2-4%, which is approximately a yield of 2-4 ETH/year, around $4-8k/year.
2. The rETH-WETH Balancer Pool is yielding 3-6%, which is approximately a yield of 3-6 ETH/year, around $6-12k/year.

With these relatively low-risk strategies, HairDAO can conservatively expect a ~10 ETH (~$20k) per year return.

Long live HairDAO💈💈