Raid Guild Funding Proposal

Voting ended over 3 years agoSucceeded

This is a proposal to fund Raid Guild to build a new frontend. The first step is getting a designer to start work on the user experience/interface and will cost $1000. To fund this, the proposal is to purchase ETH, deposit it to Save, and borrow 1000 DAI to pay Raid Guild’s initial fee.

Background

RaidGuild is the premier design and dev agency of the Web3 ecosystem. They are deeply entrenched in the bleeding edge of DAOs, DeFi, dApps and everything else in between. Hailing from the MetaCartel network, the team consists of a diverse group of talent with over 9000 years of combined experience.

The treasury has approximately $40K liquid in a mix that is 60% USDC and DAI and 40% ETH, WBTC, and MATIC. Additionally there’s $20K worth of RIC tokens (~2.5M RIC).

The treasury had much larger holdings when ETH and BTC were trading closer to 4K and 50K respectively. Since the blow-off top its been about 10 months and now we’re deep in a bear market that's seen ETH and BTC crash to below 900 and 18K respectively. The markets are cyclical so sooner or later we will reenter a bull market.

Justification

This proposes the DAO convert some of the USDC to ETH and then borrow against the ETH to fund Raid Guilds' work. The idea being that the ETH will appreciate while Raid Guild is working on this and overtime the work can be paid for out of the appreciation in ETH. Additionally, the amount of assets Ricochet DAO has greatly exceed the amount of the loan required to pay Raid Guild to get started. In the event of a significant draw down in the price of ETH the DAO is prepared to add more collateral it already has in other tokens.

Treasury Actions

Swap 7000 USDC for ETH (DCA'd over the course of a week)
Deposit the ETH into Aave
Borrow 1000 DAI to pay Raid Guild
Authorize borrowing an additional 2.5K DAI as long as the loan is within the lending parameters below

Lending Parameters

This section includes notes about managing the borrowing. Borrowing against ETH can be risky if the price moves down quickly. Therefore, these are the proposed parameters for the loan:

Maintain a < 40% loan to value (LTV)
If LTV > 40%, add collateral to return to < 30% LTV
If LTV > 40% and there is not enough collateral to add to return to LTV < 30% then sell collateral to reduce the debt and return to LTV < 30%

Off-Chain Vote

Yes, buy ETH and borrow DAI

429.74K RIC100%

No, take no action

0 RIC0%

Quorum:172%

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Timeline

Sep 09, 2022Proposal created

Sep 09, 2022Proposal vote started

Sep 12, 2022Proposal vote ended

Oct 26, 2023Proposal updated

Background

The treasury has approximately $40K liquid in a mix that is 60% USDC and DAI and 40% ETH, WBTC, and MATIC. Additionally there’s $20K worth of RIC tokens (~2.5M RIC).

Justification

Lending Parameters

This section includes notes about managing the borrowing. Borrowing against ETH can be risky if the price moves down quickly. Therefore, these are the proposed parameters for the loan:

Maintain a < 40% loan to value (LTV)

If LTV > 40%, add collateral to return to < 30% LTV

If LTV > 40% and there is not enough collateral to add to return to LTV < 30% then sell collateral to reduce the debt and return to LTV < 30%