Umami DAO Proposal #3: Approval of Treasury Funds being used as Testing TVL in Upcoming GLP Vaults

Author/s Governance Support Team/Core Contributors

Summary Proposal to approve the use of treasury funds up to $1,000,000 to test the finalized, audited Vault code prior to opening the product to the public.

Abstract This proposal aims at battle testing the upcoming Vault strategy/code before going to market with treasury funds, to mitigate any possible problems that could arise during a public launch. While it puts some treasury funds at relative risk being used as testing TVL, it also avoids possibly risking users' funds in a public launch. This will also allow live main net testing with a significant amount of TVL before opening up to larger deposits which will further bolster our supporting analytics such as the already existing backtesting and live testing with a small amount of TVL we have done.

Motivation So far our GLP Vaults have been backtested meaning we have for example looked at the last 12 months of GLP data and laid our strategy on top to observe how it would have performed. We then deployed the code to Arbitrum main net and live tested it with a minimal amount of TVL to see how it would perform in action. Both of these preliminary testing methods have proven effective and results have been in line with what we have shared with the community. They have shown us all very valuable insights into the performance of the Vaults, but nothing beats $1,000,000 of TVL to prove they work as intended to anyone who may have their doubts.

Why is it being put forward to the community? The community holds decision-making authority over significant changes in the protocol's core functions. Treasury managers are responsible for administering and executing daily transactions, but major operational decisions, such as allocating $1,000,000 for product testing, should always be determined by a vote from the token holders.

Specification Approve usage of $1,000,000 worth of treasury funds to be divided between the different assets that make up our Vault composition ($USDC, $BTC, $ETH, $LINK, $UNI). Funds will be mostly pulled from our existing GLP/USDC positions and scaled into the Vault through multiple phases.

Key metrics of what changes the proposal is intending to implement. Deploy $1,000,000 worth of Treasury funds into our upcoming GLP Vault for pre-launch testing purposes.

Implementation If this proposal is successful, Funds will be rotated out of standard treasury deployments once Zokyo has finished the final Audit and the Vault is deployed for testing in roughly 2-3 weeks. Core Contributors will make an announcement stating the Audit is completed and funds are being moved for this purpose.

Vote "Accept" to accept the proposal and implement

Vote "Reject" to decline the proposal and return to governance cycle