Snapshot 8: Integration of ether.fi weETH into the tETH Strategy

Summary

This proposal seeks DAO approval to integrate ether.fi’s weETH into Treehouse’s tETH yield strategy.

Specifically, the proposal recommends:

• Allocating up to 60% of the post-strategy wstETH balance to mint weETH

• Maintaining existing leverage structure and safety parameters

These changes aim to improve the yield efficiency and capital utilization of tETH while preserving current strategy safeguards.

Motivation

The tETH yield strategy consists of:

• Base Proof-of-Stake (PoS) rewards

• Market Efficiency Yield (MEY) via collateralized borrowing and redeployment

• Ecosystem incentives such as Treehouse’s GoNuts rewards program

Following tETH strategy execution, a portion of wstETH remains as a post-strategy balance.

This proposal introduces allocating a portion of the post-strategy wstETH balance to mint weETH.

weETH accrues yield through both staking and restaking activities, which may contribute to the MEY component of tETH.

If implemented, this integration is expected to:

• Enhance the MEY component through additional yield sources

• Improve capital efficiency within the strategy

• Diversify staking exposure across multiple providers

Additionally, exposure to weETH may enable participation in ether.fi’s reward mechanisms, where applicable, with benefits accruing to tETH holders.

This integration introduces an additional source of yield while maintaining existing leverage and risk parameters.

Specification

If approved, this proposal will:

• Allocate up to 60% of the post-strategy wstETH balance to mint weETH

• Integrate weETH into the strategy accounting framework

• Maintain existing risk parameters

The DAO retains authority to revise allocation parameters through future governance proposals.

Implementation

If approved, the DAO assigns Treehouse Protocol to:

• Review ether.fi integration parameters

• Execute up to 60% of tETH’s post-strategy wstETH balance to mint weETH

• Update strategy accounting and dashboard reporting

• Monitor performance and yield contribution to tETH’s MEY

No structural redesign of the tETH strategy is required.

Voting Options

• For – Approve the integration of weETH into the tETH strategy under the proposed allocation parameters

• Against – Reject the proposal

• Abstain – Record sentiment without voting for or against

Vote Outcomes

If FOR passes:
weETH will be integrated into the tETH strategy, with up to 60% of the post-strategy wstETH balance allocated under existing risk parameters.

If AGAINST passes:
No changes will be made to the current tETH strategy.

If ABSTAIN:
No direct effect; recorded for sentiment but not counted toward quorum.