[MIP-11] Approve deployment of 100 ETH to a strategy built on Resonate

Category: Treasury Management and Partnerships

Objectives:

Co-market utilizing Twitter, Medium, and any other social media platform

Include a link to the Resonate Dapp on the Maia DAO Dapp

Earn a weekly stable upfront fixed rate on ETH of stETH-ETH of 2.6%-13% annualized; reinvest yield earned back into the pool to compound

Offer amplified yield payouts on ETH of ~15.38% per week (or 800% annualized)

Proposal Overview:

Under this proposal, Maia DAO will deploy 100 ETH (or stETH/ETH) to a Resonate pool. These tokens will be locked for 1 week in return for near-par yield upfront yield on a weekly basis. The upfront payout will depend on the underlying yield rate, estimated between 0.05%-0.25% weekly (or 2.6%-13% annualized). Counter-parties (including individual Maia DAO members) will provide the upfront yield in return for a boosted yield of about 15.38% weekly (or 800% annualized).

What does this mean for Maia DAO?

Maia DAO would earn a stable weekly yield, paid upfront, and would lock capital for only a week at a time.

If the program is deemed a success, Maia DAO may expand their weekly deposits to 250 ETH.

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 more sensitive to short-term volatility in yield rates.

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:

ETH is paid upfront to Maia DAO for a low-risk 1-week lock on their capital. ‘Retail investors’ and ‘smart money’ will be attracted to take the counterparty position due to the incredibly high amplified yield rates.

Maia DAO’s ETH will be held within a Principal-FNFT for 1 week at a time.

The FNFT remains fully liquid throughout the term, allowing them to sell it on OpenSea/LooksRare/SudoSwap should the need arise.

The ETH is deposited into a corresponding farm.

The yield on the ETH generated is delegated to the Interest-FNFT held by the those who take the counterparty position.

Estimated Returns:

Maia DAO ROI: 2.6%-13% annualized

Counterparty ROI: 800% annualized

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.

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 deploy 100 ETH into a Resonate Pool that accepts ETH or stETH/ETH. Pending a successful test, allow for up to 250 ETH to be utilized in a similar fashion.

A. Yes, partner with Resonate and deploy 100 ETH to this program with up to 250 ETH in addition if the program is successful.

B. No, this proposal needs more work and should not be accepted as written.