PTIP-68: Ondo LaaS OTC settlement

PTIP-68

Simple Summary Send 350,559.66 USDC to Ondo to settle LaaS program debt OTC. After settlement, the Ondo team will send back 307,693.06 POOL to the PoolTogether treasury (93,639 more than originally provided).

Abstract The TWG proposes that the protocol send 350,559.66 USDC to Ondo to settle LaaS program debt OTC to avoid needing to rebalance on the market with low liquidity.

Specification In order to receive the 307,693.06 POOL held within Ondo’s smart contracts now that the program has concluded, PoolTogether needs to settle the 350,559.66 USDC debt.

Rationale When PoolTogether deployed POOL into the LaaS program, 214,000 POOL was allocated to the variable-rate position. Fei Protocol provided 1,134,200 FEI in the fixed-rate position, with a hurdle of 5.13% APY to be satisfied at maturity.

The settlement terms highlight the difference in FEI + POOL at the conclusion of the program, where PoolTogether has an additional 93,693.06 POOL tokens, which are valued at $278,268.38 given today’s prices ($2.97 at time of writing). The DAO also received 67,828.55 TRIBE valued at $34,850.85 given today’s prices ($0.513808 at time of writing). Taking these amounts into account, the net cost to the protocol is roughly $37,440.43 when POOL and TRIBE is taken into consideration along with the senior position hurdle.

Settling directly with Ondo will prevent further sell pressure on the POOL token, which would happen if POOL were exchanged for FEI directly on-chain.

I spoke with Gabriel Bianconi from Ondo and reached an agreement on these terms. Upon execution of this PTIP, Ondo will send the 307,693.06 POOL back to the protocol treasury.

Technical Specification call withdrawFrom YieldSourcePrizePool (0xd89a09084555a7D0ABe7B111b1f78DFEdDd638Be) from 0x42cd8312d2bce04277dd5161832460e95b24262e (gov timelock) amount 350559660000

call transfer USDC contract (0xA0b86991c6218b36c1d19D4a2e9Eb0cE3606eB48) to 0x7EBa8a9cAcb4bFbf7e1258b402A8e7aA004ED9FD value 350559660000

Onchain Vote: https://vote.pooltogether.com/proposals/37 Forum PTIP: https://gov.pooltogether.com/t/ptip-68-otc-settlement-for-ondo-fei-laas-program/2164