PGP-24 l Update Treasury Strategy

Summary: This proposal aims to update the Parallel treasury strategy in order to follow the latest strategic changes.

Rationale: A year ago the MGP-17 was approved by DAO, in line with recent changes of liquidity pools and market conditions we propose to update it.

Below is the current strategy:

• Management:
  • Ethereum: (no changes)
    • Every 4 months, claim ETH rewards from sePSP2 staking
    • Every 4 months, swap ETH for AURA tokens
    • Every 4 months, claim auraBAL from vlAURA locking
    • Every 4 months, swap claimed auraBAL for AURA
    • Every 4 months, claim APW from sdAPW staking → Deposit and stake them for sdAPW
    • Every month, bridge accumulated PAR to Polygon
    • Every month, bridge accumulated paUSD to Polygon
    • Every 4 months, lock AURA tokens and relock current vlAURA
  • Polygon PoS: (changes)
    • Every month, swap accumulated & bridged paUSD and PAR to get a 50/50 split in $ equivalent in wETH and PAR.
    • Every month, Deposit and stake acquired PAR in the p-cs-kp-eur on Aura
    • Every month, deposit and stake ETH with MIMO from the treasury in the MIMO/wETH 80/20 on Aura
    • Every 4 months, claim BAL and AURA tokens from the p-cs-kp-eur
    • Every 4 months, claim BAL and AURA tokens from the MIMO/wETH 80/20
    • Every 4 months, swap claimed BAL for AURA
    • Every 4 months, bridge claimed AURA to Ethereum

Proposed updated strategy:

• Positions Updates:
  • Ethereum:
    • SAFE tokens -> Claim unvested SAFE tokens, sell all liquid tokens for AURA
    • sePSP2 -> Unstake them (28 days cooldown), sell received PSP & ETH for AURA
    • auraBAL tokens -> sell them for AURA
  • Polygon PoS:
    • jEUR/PAR BPT -> unstake them from Aura, withdraw liquidity, deposit the received tokens in the PAR/EURe E-CLP and stake the LP on Aura
  • Blast:
    • HYPER tokens -> Claim weekly Hyperlock airdrop
    • Lock HYPER tokens for vlHYPER tokens
    • Delegate vlHYPER voting power
• Management:
  • General:
    • Every month, swap net accumulated (after service providers payment, etc..) paUSD and PAR to get a 30/35/35 split in $ equivalent in wETH (30%), paUSD (35%) and PAR (35%)
  • Ethereum:
    • Every month, if there are not enough MIMO in the treasury to get a 80/20 MIMO/wETH share for LP, the DAO will buyback MIMO tokens at the market via TWAP in order to get the 80/20 ratio
    • Every month, deposit and stake ETH with MIMO from the treasury in the MIMO/wETH 80/20 on Aura
    • Every month, deposit and stake acquired paUSD in the paUSD/GYD E-CLP on Aura
    • Every month, deposit and stake acquired PAR in the EURA/PAR E-CLP on Aura
    • Every month, claim BAL and AURA tokens from Aura
    • Every month, swap claimed BAL for AURA
    • Every month, lock AURA tokens and relock current vlAURA
    • Every 4 months, claim APW from sdAPW staking → Deposit and stake them for sdAPW
  • Polygon PoS:
    • Every month, if there are not enough MIMO in the treasury to get a 80/20 MIMO/wETH share for LP, the DAO will buyback MIMO tokens at the market via TWAP in order to get the 80/20 ratio
    • Every month, deposit and stake ETH with MIMO from the treasury in the MIMO/wETH 80/20 on Aura
    • Every month, deposit and stake acquired paUSD in the stataUSDCn/paUSD E-CLP on Aura
    • Every month, deposit and stake acquired PAR in the EURe/PAR E-CLP on Aura (and/or EUROe/PAR E-CLP)
    • Every month, claim BAL and AURA tokens from Aura
    • Every month, swap claimed BAL for AURA
    • Every month, bridge AURA tokens to Ethereum

We propose to give the right to multisig signers, with advisory from Mimo Labs & Cooper Labs, to choose in which pools PAR (EURA/PAR, EURe/PAR, EUROe/PAR) & paUSD (paUSD/GYD, stataUSDCn/paUSD) funds would be deposited each month, as well as funds deposited in MIMO/wETH 80/20 pools between Polygon PoS & Ethereum. We propose to give voting power from vlAURA, vlHYPER & sdAPW to Mimo Labs.

There are currently 24,601,792 MIMO liquids in the DAO treasury, representing around $145k at time of writing. This may sound like a lot, but it's actually quite low. There is currently the equivalent of $201k worth of wETH (20%) waiting to be deposited in the MIMO/wETH BPT pool on Polygon PoS, with the equivalent of $804k worth of MIMO (80%). However, there is only $145k worth of MIMO currently in the treasury.

We therefore propose:

• to keep a minimum of 5,000,000 liquid MIMO in the treasury.
• in cases where MIMO are insufficient to deposit liquidity in the MIMO/wETH pool with the 80MIMO/20wETH ratio, MIMO be bought back at the market on Polygon PoS/Ethereum, using the wETH dedicated to the liquidity pool, until the ratio 80MIMO/20wETH is reached. (at the time of writing, it would be necessary to buy $137k worth of MIMO tokens (2.5% of the total supply) on the market to get the 80MIMO/20wETH ratio)

Note: If liquidity pools are to change over time, but retain the same tokens, we propose to authorize multisig signers to migrate liquidity to the new pools without the need for a DAO vote.

Means:

• Human Resources: Multisigners will need to sign and execute transactions to update the treasury strategy and manage it in accordance with the voted strategy.
• Treasury Resources: Described in the proposal.

Technical implementation: Described in the proposal.

Voting options:

• For Treasury Strategy Update
• Against / Rework the Proposal
• Abstain

Authors: Jean Brasse from Mimo Labs