Avantgarde Finance to Support Treasury Management for Shutter DAO 0x36

(Posting this proposal on behalf of Avantgarde)

Proposal to deposit 2.3m USDC from the Shutter DAO 0x36 treasury into a vault which mirrors the Avantgarde DeFi Yield Fund, currently yielding 9.5-15% APY.

• Straightforward non-custodial deposit with conservative risk.
• No active management required from the Shutter DAO, who still retains ownership over the vault.
• Full transparency into vault activity with real-time analysis.
• Potential for long-term partnership with a leading crypto-native Treasury Manager.
• Allows the Shutter DAO 0x36 and its core contributors to continue to focus on its core mission, knowing treasury assets are safely managed and productively earning yield.

Avantgarde Finance proposes that $2.3m USDC from the Shutter DAO 0x36 treasury is deposited into a DeFi Yield Fund vault, completely owned by the Shutter DAO 0x36 and managed on its behalf by Avantgarde. The vault would mirror the allocation of the Avantgarde DeFi Yield Fund (which is a regulated fund for our institutional clients) currently yielding in the region of 9.5-15% APY. The DeFi Yield fund is a non-custodial vault built on the battle-tested (mainnet since 2019) Enzyme protocol that provides diversified exposure to on-chain stablecoin yield across multiple sources, based on a robust protocol selection process and risk assessment framework. Shutter DAO 0x36’s vault would be a custom-built, non-regulated vault without all the regulatory overhead and added considerations for institutional investors of the mirrored Avantgarde fund, which would even allow us to increase the current turnover and yield while staying within reasonable risk parameters. To see the current vault composition, visit the vault’s portfolio page. You can also use this embedded link to access all of Enzyme’s DeFi protocol integrations.

DeFi Yield Fund Summary

• Non-custodial with smart-contract based roles & permissions
• Provides access to onchain yields within DeFi, focusing on the largest, most battle-tested protocols
• Currently yielding 9-15% APY
• Aims to be diversified across stablecoins, protocols, and underlying yield sources
• Balances the level of yield with risk and capacity
• Actively managed
• Competitive fees, 0.5% for management and 7.5% for performance
• Full transparency into fund activity

Operational setup

• A vault would be configured such that ShutterDAO is the only allowed depositor and Avantgarde Finance would be delegated manager with certain smart contract roles & permissions (ensuring that Avantgarde can not misappropriate the funds).
• Fees would be calculated in the vault technology and paid out automatically
• Reporting is on-chain provable and auditable 24/7
• Ownership would be transferred to ShutterDAO after configuration
• The DAO can remove or change the asset manager at any time Avantgarde will provide written reporting on the performance of assets, either monthly or quarterly as the community deems appropriate. We’re also happy to manage any upcoming developments to sDAI and required portfolio changes as the DAO wishes. Long-term, we can build on a partnership between Shutter and Avantgarde to implement more sophisticated strategies, possibly exploring covered call options for extra revenue, and a holistic treasury management structure that can sustainably support the DAO’s ongoing operations.

Motivation

Recent discussions and temp checks on Treasury Management have shown a majority interest from the Shutter community to earn yield on idle treasury assets. At the same time, delegates have not been convinced by previous proposals on the topic, in part due to a desire for greater simplicity and a strategy that allows for minimized governance attention, operational risk and overhead. Avantgarde’s experience and battle-tested infrastructure can help address these points.