[Pending] AIP 007: Using the treasury / team funds in a proactive manner

Governance discussion
#1

Summary

Use a percentage of the team’s largest team wallet/treasury (found here) to generate revenue using TokenSets automated strategies.

Abstract

The proposed idea will allow for the growth of the total treasury held by the team and overall contribute to the growth of the platform. As most of you know, TokenSets are completely automated and offer an array of strategies and ideas. We’ll need to deposit some Ethereum and choose a set to invest in. Full strategy, allocations, risk assessment & time period KPIs are TBD, but the important thing sets are liquid & can be withdrawn at any point. While I do believe holding the $AKRO token long term is a great strategy, some diversification and consistent cash flow is attractive nonetheless.

Motivation

The main motivation is to grow the assets of the treasury to use for innovation & investments/expenses in the future. We will also have diversification from strictly the directional risk of the AKRO token (sorta, obviously the idea here is still to have a consistent price increase over time). Finally, we can use the profits to invest in Delphi to increase the community collateral & value/security of the protocol as well as the AKRO token for all DAO members.

5 Likes
#2

Having multiple assets available would provide opportunity for better efficiency by spending the over valued assets in favor of under valued, and switching as they change places.

There is an opportunity here as well for an investment strategy for users. Could be called the “Delphi index” where users could allocate their funds to mimic the team treasury weights. I’m sure it would have low APY but could be considered less volatile and more stable.

Were the team fund ever to run dry, additional funding would no doubt come from governance decisions and no doubt a treasury there. Giving the team their own means of increasing their treasury could eliminate or at least reduce the frequency of need for additional funding or outside contributions.

No doubt there would need to be an exchange of some kind. I see an option when / if governance creates it’s treasury, it could buy the the decided upon percentage of the teams akro funds to be used for token sets. This would be a solution that has less impact that the team market selling $20 million akro. The team funds could be bought at an agreed upon rate, for zero slippage.

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#3

I would think improving the protocol which improves the value of the teams treasury would be the optimal incentives. I could see the teams treasury being used in one of AKROS products or to provide a boost to the liquidity pools for ADEL and AKRO, but this comes with risk, the teams treasury should probably not expose itself to more risk or other assets as it should be there to incentive improving AKRO as a whole.

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#4

I consider that at this moment, have multiple assets available is not efficient. Could be a better option to have only one asset

#5

Care to elaborate? While it may be obvious to you, the rest of us weren’t inside your head with you while you arrived at your conclusion.

#6

I did go over and browse the set tokens and am wholly unimpressed with what I saw. I think there are better ways of increasing treasury funds. Seems like a 98 / 2 10% fee balancer pool would do better automation than the set protocol “strategies.”