Treasury Tuesday Treasury Tuesday - August 23, 2022

View the agenda for this event.  

News & Recent Events [0m]

• KIP-30: Establish a Testing Wallet has passed.
• KIP-29: Non-Core Asset Discretion Proposal has passed.
• The Treasury Charter is currently being drafted.
• A high-level timeline for Compensation 3.0 has been set:
• Initial presentation occurred on Aug 22
• Internal discussion period through Sep 4
• External discussion period: Sep 4 - 11
• Implementation: Sep 11 - 14
• KIP-5: Unlocked CVX has been withdrawn. Two thirds have been staked (but not locked), and one third (93,000 CVX / 308 ETH) sold and returned to the treasury.
• The first tranche of assets (1,587 ETH) has been sent to the market maker in order to acquire staked ETH assets via Rook Trade limit orders.
• As an expansion on KIP-19, the last batch of WETH has been withdrawn from the Rook liquidity pools as part of the plan to sunset these pools.
• Optimism is revamping their grant review process through the use of committees and an enhanced proposal template.

Open Floor [14m]

• Above Average Joe and DaddyMatty discuss a few details of Compensation 3.0, including tax-optimization and vesting methods.

Treasury Management [19m]

• The team and community work to define what constitutes a “core asset.” High-level requirements should be that the asset is highly liquid and able to be used as collateral for yield (e.g., BTC, ETH, stablecoins).
• Above Average Joe suggests that a core asset could be “the native asset of any chain that Rook has a presence on” – i.e., an asset that is required to be held in order to operate on a particular network.
• There is a discussion regarding what risk management criteria should be used for core versus risk asset holdings. For example, 85% of treasury assets should be held as core assets with a lower bound of 75%. The team should also ensure that individual non-core assets do not exceed 5% of the treasury.
• Discussion on defining risk strategies continues; the goal is to maintain stability of treasury assets while still exploring yield-bearing strategies and the ability to assume risk when deemed appropriate.
• The community brought up the possibility of an operational endowment. However, the sustainability of DeFi rewards is likely too inconsistent for this to be feasible.
• It’s important to note that the Treasury is slow-moving compared to individual actors, and this should be taken into account when discussing risk strategies (e.g., understanding the possibility of being front-run due to public plans).
• The Compensation 3.0 plan takes into account inflation and salaries in the wider tech industry, and Rook is actively monitoring the market in order to stay competitive.