Treasury and Token Management

Diversification, Liquidity, and Airdrops, and more.

Author: pmoncada

Date: Jan 27, 2025

Abstract

MoonDAO’s Treasury and Governance Token can grow using a straightforward strategy to generate yield from providing passive assets on lending protocols, diversifying its assets, providing liquidity to the governance token cross-chain, locking governance tokens, and providing staking rewards to token holders. This proposal will also include an airdrop to the first 100 MoonDAO Citizens to celebrate the milestone.

Problem

MoonDAO’s Treasury can grow using simple DeFi methods. This proposal also aims to improve the health of the MOONEY governance token.

Solution

Diversification of funds + Passive Yield

• 40% WBTC
• 40% stETH
• 20% in ETH

For each of these we could use AAVE to generate some APY on all the assets, or stake using a reputable, low-risk staking pool, depending on whatever gives better rates.

Cross-chain DEX Liquidity

• 20 ETH of Liquidity x equivalent MOONEY on Mainnet
• 10 ETH x MOONEY on Arbitrum
• 10 ETH x MOONEY on Base

Improved CEX Market Marking Liquidity Set up market making on Gate.io and MEXC to generate revenue for the DAO, and send back fees that have already been generated on each platform.

Lock MOONEY Lock 80% of the unused $MOONEY on Arbitrum beyond what will be used for project rewards for the next year.

Staking Rewards ETH fee from DAO managed token liquidity fees gets routed to vMOONEY stakers. MOONEY fee gets burned, creating a deflationary effect.

vMOONEY Governance Airdrop for Citizens 5,000,000 $vMOONEY between all MoonDAO Citizens, locked for 4 years. (50k vMOONEY each). 5,000,000 $vMOONEY to all vMOONEY stakers (proportional to staked amount up to 100k vMOONEY).

Benefits

• Revenue generation via low-risk DeFi mechanisms.
• Improving the token with liquidity on CEX and DEXs.
• Locking MOONEY to provide security.
• Revenue generation to vMOONEY governance.
• Airdrop to improve governance distribution.

Risks

• Liquidity provisioning can be expensive if the token price goes down.
• Usunreliable staking pool operator can increase the risk of losses, such as through protocol penalties, and reduce rewards.

Objectives

Objective #1: Improve the health of the MoonDAO Treasury by diversifying its assets and generating a passive yield.

Key Results:

• Diversify the ETH in the treasury to target 40% WBTC, and 20% in high-yield stables.
• Stake or provide the remaining ETH on AAVE in the treasury to generate passive yield.

Objective #2: Improve the health of the $MOONEY token by adding liquidity, creating staking rewards, and creating an Airdrop for participants at MoonDAO.

Key Results:

• Add 20, 10, 10 ETH of liquidity across mainnet, base, and arbitrum respectively.
• Set up a marketmaker on Gate.io to continue creating fees for the DAO.
• Distribute liquidity fees to token holders via staking.
• Distribute 10,000,000 $vMOONEY tokens to Citizens and current stakers.

Team (Table A)

Project Lead	@pmoncada
Initial Team	@jade
Multisig signers*	@jaderiverstokes_: jaderiverstokes.eth@ryand2d: ryand2d.eth@mitchie_mitch: mitchmcquinn.eth@name.get: namedotget.eth@pmoncada: pmoncada.eth

Milestones / Timeline (Table B)

Days after Proposal Passes	Description
End of February	Treasury Diversified. ETH staked / provided on AAVE. Liquidity Added. CEX Market Marking added.
End of March	Staking Rewards set up. Governance Airdrop completes to celebrate 100 Citizens.

Deadline for the project: End of Q1.

Budget (Table C)

Description	Amount	Justification
Liquidity Provisioning	40 ETH	Liquidity (explained above)
Liquidity Provisioning	300M MOONEY	Liquidity (explained above)
Airdrop	10M MOONEY	Airdrop (explained above)
Total	40 ETH, 310M MOONEY

Transactions (Table D)

Transaction Type	Amount	Token Type
Swap to WBTC	90	ETH
Stake ETH	90	ETH
Swap to High Yield Stable	40	ETH
Liquidity Provisioning	40	ETH
Liquidity Provisioning	300,000,000	MOONEY
Stake	300,000,000	MOONEY

--- nance-actions
- type: Request Budget
  payload:
    budget:
      - token: "0x20d4DB1946859E2Adb0e5ACC2eac58047aD41395"
        amount: "300000000"
        justification: Liquidity
      - token: "0x20d4DB1946859E2Adb0e5ACC2eac58047aD41395"
        amount: "10000000"
        justification: Airdrop
      - token: ETH
        amount: "40"
        justification: Liquidity
  uuid: 0db16821169c41cfab155703b14e9f5c
  chainId: 1