Community Call Treasury Tuesday - January 31, 2023

The Treasury team discussed current pending proposals, L2 and ETH LSD research reports, Project Mismo, and questions on writing a proposal.

Rook branding with yellow-gold geometric figures; recap by Starbased
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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 and Recent Events

  • This week’s Weekly Treasury Report provides a high-level overview of the movements of the DAO’s treasury.
  • The Quarterly Report for Q4 2022 has been released! This report covers activities for the different Rook Labs teams as well as leadership updates and protocol metrics.

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.
  • Treasury Yield Management for USDC via USV - This proposal suggests investing 20% of the Rook DAO Treasury USDC holdings in Phuture’s USDC savings vault (USV). [3:30]
  • Labs Budget Request - This request would allocate USDC for Rook Labs through March 2023 in accordance with the official budget.
  • mStable Withdrawal - Due to the precarious future of the mStable project, this proposal would terminate Rook’s position in the protocol and swap imUSD funds to USDC. [4:34]

Initiative Collaboration [7:32]

  • The L2 Research report investigates various L2 solutions, including both optimistic and ZK-rollup projects, and outlines their risks and benefits.
  • The Ethereum Liquid Staking Derivatives report provides a summary of the various LSD products that could potentially be used to generate additional yield. [10:20]
  • The team is open to feedback for the Weekly Treasury Report!
  • Project Mismo is an effort to productize the various revenue-generating MEV strategies that the treasury has been executing, such as one-to-one stable swaps and LSD arbitrage. More updates about this new product will be released as they become available. [12:46]
  • The DeFi Roundup will be a new community call that will allow the community to bring up general DeFi-related questions for the team to research and distill. [16:12]
  • The Q1 2023 Budget Request outlines the USDC allocations for Rook Labs in accordance with the project budget. [18:38]

Open Floor [25:00]

  • Peter (SlagathorTheMammothKing), a representative from Origin Protocol, requested guidance for forming a proposal to Rook governance for using OUSD. [26:41]