Community Call Treasury Tuesday: January 17, 2023

The Treasury team discussed the first weekly DAO treasury report, the Ethereum LSD analysis, and pending proposals.

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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!

News and Recent Events

  • The Treasury team released the first DAO treasury report. This report provides detailed weekly insight into behind-the-scenes updates to the treasury asset balances, movements, and other notable items.
  • The treasury has condensed its positions around ETH and LSDs, and is in a strong position with the recent positive market movements.
  • The Q4 Report will be coming in the weeks ahead.

Pending Proposals

  • KIP-36 - Expand Funding and Strategies of Testing Wallet: Originally $600K was allocated to the testing wallet effort. Due to the success in generating yield, an additional $400K in DAI funding is being requested.
  • KIP-37 - Discretionary Swapping of Like-Kind Assets: Currently, the treasury must go through the slow governance process to swap like-kind assets. This proposal would mitigate risk by giving the treasury the discretion to swap between stablecoins, Ethereum/ETH derivatives, and Bitcoin/BTC derivatives.
  • KIP-38 - Replenishing Discretionary Allocation Fund: This gives the treasury the ability to quickly react to and take advantage of market opportunities in a non-public manner. This proposal would replenish the cap to the lesser of $5M or 5% of the treasury’s notional value.
  • KIP-39 - Deployment of Additional ETH for Yield Generation: The ETH yield generation experiment has been successful, so there is a desire to increase the limit to 80% of idle ETH.

Initiative Collaboration

  • The community discussed KIP-38 (Replenish Discretionary Investment Limit Funds), and the possible checks and balances that could be introduced to this proposal.
  • 50 shared the Ethereum Liquid Staking Derivatives analysis document, which provides a summary of the various LSD products that could potentially be utilized to generate additional yield.

Open Floor

  • The community discussed the impact of withdrawals being enabled for staked ETH. The expectation is that the gap in prices will close to be in line with accrued value from staking rewards, and the treasury will not be materially impacted.