In this special Governance Workshop, the Rook community is joined by Charles and Oliver from Phuture, which offers a set of on-chain indexes with automatic maturity management.
Governance Workshop is a biweekly, open meeting where we discuss specific proposals that are in progress and workshop new ideas about Rook's governance process.
To participate in the calls and ask any questions you may have, join our Discord!
Phuture is known for their Ethereum and Avalanche DeFi indexes: PDI and CAI.
The Phuture team was upset with the state of fixed rate yield opportunities available to crypto investors – with limited maturity terms available for existing products – so they created a product built on top of Notional Finance with automatic maturity management and no fees.
Phuture has submitted a KIP that would utilize their USV product to generate yield for the Rook treasury’s USDC holdings.
Phuture is proposing that the Rook treasury deposit 20% of idle USDC (~$1.9M) in the USV vault. [11:30]
$322,000 is currently in the vault; however, the Phuture vault capacity is only limited by the utilization in Notional Finance.
Phuture utilizes Keeper Finance jobs to programmatically harvest yield and deposit funds into vaults.
Jason asked about the credit risks associated with Notional’s instruments. The Phuture team elaborated on their track record and bond mechanics. [20:00]
The Phuture product does not currently have insurance coverage available through protocols such as Nexus Mutual, but the team is open to exploring the possibility. [23:45]
To reduce slippage when deploying into the vaults, Rook funds that are provided to Phuture would be deployed over a two-week period.
The automatic rolling over and management of maturities is the primary advantage of utilizing Phuture over directly deploying into Notional. [25:20]
With no management fee currently enabled, Phuture is looking to achieve deeper market penetration by first honing in on their product-market fit, and perhaps enabling a fee switch at a later date.
Phuture is planning to launch a cross-chain investment product that would enable a broad index outside of just DeFi protocols by utilizing LayerZero. [41:00]
The Phuture team is looking forward to hearing feedback from the community!