Treasury Tuesday Treasury Tuesday - August 23, 2022

The treasury team discussed recently passed proposals, core assets, risk management criteria, and the timeline for Compensation 3.0.

Treasury Tuesday - August 23, 2022
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Treasury Tuesday calls are open-invite meetings to drive the strategy, risk management, and overall discussion for all aspects relating to the Rook DAO Treasury.

To participate in the calls and ask any questions you may have, join our Discord!

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  • KIP-5: Unlocked CVX has been withdrawn.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  • As an expansion on KIP-19, the last batch of WETH has been withdrawn from the Rook liquidity pools as part of the plan to sunset these pools.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.