[MIP-4] Deployment of $50k USDC to Resonate Yield Futures Protocol

Category: Treasury Management and Partnerships

Scope: Approve deployment of $50,000 in USDC to Resonate Yield Futures Protocol within two weeks of this proposal passing or one week before the public launch of Resonate (whichever is later).

Status: Pending

Objectives:

1. Become a launch partner with Resonate.
   1. Co-market utilizing Twitter, Medium, and any other social media platform
   2. Display each others logos on one another's websites
   3. Include a link to the Resonate Dapp on the Maia DAO Dapp
2. Dollar Cost Average (DCA) Stable coins into Etherium (ETH) over 12 months. 
3. Offer upfront yield payouts on stETH/ETH pool on Yearn of up to 3.75%.

Proposal Overview:

Historically, the strategy of Maia DAO has been to DCA USDC into ETH at a rate of about $20,000 per week. Though this is a very good strategy in order to get the best average value for our treasury, we believe that by utilizing the Resonate Dapp we can maximize this strategy.

Under this proposal, Maia DAO will deploy $50,000 in USDC to a Resonate pool for the purpose of incentivizing deposits of ETH tokens into the Resonate pool, which will subsequently be staked in LIDO. These tokens will be locked for a 12-month term and deposited into LIDO to earn boosted yields. 

*voting Yes on this proposal DOES NOT preclude Maia DAO from pursuing other categories (such as Stablecoin Boosting) contemporaneously or subsequently.

When a user deposits into the Resonate pool they forfeit the ETH future yields in return for an upfront payment in USDC.

What does this mean for Maia DAO?

Maia DAO would earn a projected return of 36% APR paid in ETH tokens on the $50,000 USDC deployed. These ETH tokens will be collected in the form of interest over the next 12 month period.

When successful, this program will allow the Maia DAO to purchase future ETH at today's prices.

Background:

Resonate is a Yield Futures Protocol developed by Revest Finance and built on top of Revest's Financial NFT (FNFT) technology. 

Using Resonate, we're able to separate the principal and interest components of a position by issuing two FNFTs---one containing the principal and the other containing the rights to future interest on that principal. 

Resonate facilitates the commerce of the rights to future interest by matching issuers---who want to sell off their interest rights for a one-time upfront payment---and purchasers---who want to buy the rights to future interest for a one-time upfront payment.

Learn more about Resonate here.

Risks:

For an issuer the risks are minimal. Mainly, they're restricted to token price fluctuations.

A purchaser, on the other hand, is exposed to opportunity cost. 

Issuers hold their principal within the Principal-FNFT and, therefore, retain a fully liquid FNFT throughout the term, allowing them to sell it on OpenSea, LooksRare or SudoSwap should the need arise.

Details:

1. USDC is paid out upfront to bribe 'retail investors' and 'smart money' to enter the ETH farm, giving them instant yield paid in USDC.
2. Their ETH tokens are held within a Principal-FNFT for 12 months.
3. The FNFT remains fully liquid throughout the term, allowing them to sell it on OpenSea/LooksRare/SudoSwap should the need arise.
4. The ETH tokens are staked into LIDOs ETH farm.
5. The ETH rewards generated by the ETH tokens are delegated to the Interest-FNFT held by the Maia DAO treasury and these rewards may be claimed at any time.

*Please note that the "per 100 tokens deposited" is a standardized value and the minimum amount of tokens required will not be this large. 

Estimated Returns:

• Incentivize entering ETH staking on LIDO.

• 12 months pays out of up to 3.75% upfront resulting in a 36% ROI for Maia DAO.

  • Issuer receives up to 3.75% immediately opposed to waiting 12 months for 3.9%

• Maia DAO ROI: 36% return, $18,000 profit

Fees: 5% on all upfront payments to the issuer; 5% on all interest generated through the lockup period to the purchaser. No fee assessed to principal on deposit or withdrawal.

Business and Technical Requirements:

Resonate will develop an adapter for LIDO that will allow Maia DAO to claim the interest in ETH tokens.

• Deployment of 50,000 USDC to Resonate Pool
• Custom solution utilizing LIDOs farm.
  • Reward tokens kept in native format.

Glossary of Terms:

FNFT - Financial Non-Fungible Token.

Yield Futures - the separation of a stake's periodic interest payments from its principal repayment obligation to create a series of individual FNFT's. With Yield Futures, the underlying stake becomes a principal-bearing FNFT and each interest payment can be claimed through the interest-bearing FNFT at any time.

Principal FNFT - This is the FNFT where the original sum of tokens staked is held.

Interest FNFT - This is the FNFT where the interest from the principal FNFT will be sent. You are able to withdraw the interest accrued at any time.

Synthetic Swap - When you use Resonate to trade your own token, or another token, for a completely different token in order to diversify your treasury.

Stablecoin Boost - When you deploy stablecoins from your treasury in order to receive higher than normal yields if you were to just deploy to a stablecoin farm.

Mercenary Liquidity - Liquidity that is deposited into a liquidity pool solely to reap the benefits, leaving the minute that things turn difficult. If mercenary liquidity is not locked-down, its owners will pull LPs at the first sign of market instability and sell the native token into the now more-shallow liquidity pool, pushing token prices into a downward spiral. 

Vote

Vote to form a partnership with Resonate and deploy 50,000 USDC into a Resonate Yield Futures Pool that accepts ETH, within two weeks of this proposal passing or one week before the public launch of Resonate (whichever is later). Pending a successful test, allow for up to 150k USDC to be utilized in a similar fashion.

• Yes, "Send it", partner with Resonate and deploy 50,000 USDC to this program with up to 150k USDC in addition if the program is successful.

• No, "Nay", this proposal needs more work and should not be accepted as written.