Umami DAO Proposal #5: Partial Transfer of esGMX + MPs from DAO Treasury to Deconstructed GLP Vaults

Author/s Umami DAO Core Contributors

Summary Proposal to allocate 3,601.62 esGMX & 3,252.26 MP (Multiplier Points) to our upcoming Deconstructed GLP Vaults in order to modestly boost yield for depositors.

See here for more information on GMX’s Multiplier Points: https://gmxio.gitbook.io/gmx/rewards#multiplier-points

Abstract This Proposal aims to slightly bolster Umami’s GLP Vault returns by performing an account transfer of the Main Multisig’s esGMX and MPs to the Vaults upon launch. 3,602 esGMX and 3,252 Multiplier Points will provide yield equivalent to 6,854 GMX, which using a GMX price of $55 and a GMX APR of 5% will provide approximately $1,500 of additional yield to the vaults per month.

The Deployment Multisig which custodies Umami’s GLP holdings as well as ~11,200 esGMX + associated MPs will remain as is and continue using its esGMX + MPs to earn yield for the Treasury and by proxy, Marinators.

Main Multisig: 0xB0B4bd94D656353a30773Ac883591DDBaBC0c0bA

Deployment Multisig: 0xb137d135Dc8482B633265c21191F50a4bA26145d

Motivation The additional yield produced by the account transfer will be felt the most by early depositors, when the TVL in the vaults is low. As such, we hope that this will incentivize some early vault deposits with esGMX that is otherwise sitting idle in the admin multisig.

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 ~$200,000 worth of treasury funds to incentivizing products, should always be determined by a vote from the token holders.

Implementation If this proposal is successful, we will utilize the account transfer feature offered by GMX, rotating 3,602 esGMX + 3,252 MPs out of the Main Multisig wallet and into the Vaults upon launch. It will remain there compounding yield for users and further increasing the chances that Umami’s Vaults have to pay a higher yield than base GLP. This asset allocation is not permanent, Treasury will be able to reclaim the esGMX if so directed by the DAO.

Please vote in favor or against below. A. In favor B. Against