VDP-4 VitaDAO Treasury + LP Proposal

NOTE: This is a duplicate of an on chain proposal from prior to VitaDAO's using snapshot, and is present here for completeness on snapshot. No snapshot vote occurred.

Summary

A best practice among many successful crypto projects that have survived so-called "crypto winters" is to have an appropriate treasury strategy. VitaDAO currently holds a mix of VITA, Ether and stablecoins. Here, a strategy is proposed, along actionable steps as well as rules how and to what extent the tokenomics working group may take decisions on their own on further actions depending on market trends and the DAO's needs.

Proposal Details

The goal of our treasury strategy should be to sustainably grow our assets and ensure funding for research projects and operations. I'd propose that tokenomics stewards and working group will take autonomous stewardship of treasury strategy with input from the community, as well as core working groups, and only put to an onchain vote bigger strategic changes of our strategy. The WG would take input from all community and working group members into consideration, but most importantly the financial needs for funding longevity projects. Live update of our treasury on Zerion.

Stablecoins vs tokens reallocation over ~12 months

Over time it would rebalance some Ethereum towards USDC in anticipation of needed funding for longevity projects, or into more specific more productive assets like staked ETH, vaults etc. once they see fit. One allocation model could be:

• ~20-30% stable coins and
• ~70-80% ETH and Defi tokens

Stablecoin allocation

Some longer term stablecoins could be placed into a yearn vaults that earn us APY on top of our stables and potentially insured through Nexus Mutual.

ETH + DeFi token allocation

• move ~40-60% of our ETH to liquid ETH2 tokens such as Lido stETH2 to generate 6-10% yield in ETH.
• move 10-25% to DeFi index like Indexed Finance or Pie DAO which also earns yield on top.

Liquidity Pool

I'd propose that VitaDAO would set up a Balancer LP Pool with ~$1m of Vita<>ETH Liquidity.

Summary

Allocate our ETH for example:

• 20-45% crv stEth with Curve and Lido | ~9.5%+ interest
• 15-30% ETH <> sETH liquidity pool with StakeWise and similar | ~20% yield
• ~10-15% ETH <> DeFi Index Token with Indexed Finance or Pie DAO etc. | ~35%+ yield
• 25-35% kept in ETH

More information

For the full proposal with more details, see the discussion on Discourse here.