Gitcoin Treasury Diversification

Hi Shreyas, I am interested and am hoping we can sync up to discuss. Thank you for your nomination @DisruptionJoe!

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*her :wink: (Chrisdean = Christine)

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Shreyes

Operationalizing this will be key to it’s success. Per @Yalor concern, I agree the team must be agile. The big question is “how do we mesh trust and reputation of the participants who action the funds allocation decisions with the expertise and degeneracy of those who best know what to do?”

Here are some ideas:

Separate the operations from the subject matter experts

The subject matter experts should be one step away from full degen, but are in the process of getting green pilled. Maybe offer payment as a percentage of their effect on the treasury rather than hourly. The working group may include 2 from CSDO and 3-5 SME.

Have CSDO control the multisig used for execution

When the working group makes a decision, the CSDO can execute it. Why? Because these are all workstream leads with history an reputation with Gitcoin. Plus, they are almost constantly available. They are some of the most active people in the DAO.

Get great risk managers/portfolio managers on the SME working group

Separating the operations from the decisions can allow for better checks and balances. It will let the SME group do what they do best without needing to administer anything. Take a lesson from traditional finance and have the operations executed separately.

I am worried that we might select people who are enthusiastic, successful in other lines of work, and potentially great people for the DAO, but shouldn’t be in this working group unless they have a track record of great trades, proper risk management, and are web 3 native.

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I encourage the idea of including observers, in part as an educational/onboarding way to take advantage of enthusiasm vs. expertise in the long-run. Another way to look at it is institutional knowledge risk management.

I am worried that we might select people who are enthusiastic, successful in other lines of work, and potentially great people for the DAO, but shouldn’t be in this working group unless they have a track record of great trades, proper risk management, and are web 3 native.

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Christine would be a great fit for this indeed :slight_smile:
She is our spreadsheet master and commander.

PS. “she” :sweat_smile:

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Thanks for the feedback, @DisruptionJoe. I’m Daniel from the Llama team. We’re forming this working group to work on the diversification in a manner that’s lean and efficient while having community oversight. After we complete this diversification, we can explore a more permanent working group to focus on managing the overall treasury.

All of the execution can be done in a trustless manner after the working group has made its decision - we will build the smart contracts needed to facilitate the swaps and required vesting. There shouldn’t be too much to do operationally (just whitelisting investor addresses).

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Thanks to everyone who indicated an interest in joining the treasury diversification working group!

We’ve decided to form a working group consisting of:

The working group’s responsibilities will include:

  • Providing feedback on criteria for selecting strategic partners & detailing a process for reaching out to potential partners.
  • Putting up a new forum post asking partners to share their interest in participating in the diversification.
  • Having conversations with potential partners.
  • Responding to community feedback on the next forum post and incorporating in the decision making process.
  • Choosing final list of partners, allocation sizes, and rationale. Sharing with the community for feedback.
  • Whitelisting the final partners’ addresses.
  • Putting up an on-chain proposal and ensuring execution goes smoothly over the following two weeks.
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I think you’d be a great fit here

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Congrats to the new Treasury WG ! :partying_face:
Let us know how Dao members can support you.

And I agree UMA is a great candidate to research regarding treasury management. I was introduced to them about 5 months ago and have been hanging out a bit in their Discord. I think their future is pretty good so I signed up to their new SuperUMAn Dao too. I have access to good content there, but ofc the gist of it is all in the docs online. I am still learning what they can offer but here is a link to their basic slide deck describing how the KPI tokens work.
Please ignore the blank slides in the deck.

One more link to a newer UMA products called Success Tokens.

I am not sure how the KPI option tokens and Success Tokens compare to other alternatives but I will try to figure it out. If nothing else I can connect the Gitcoin economists with the UMA economists.

I’d be happy to help facilitate any coordination between these groups. Maybe EthDenver can be the catalyst. UMA will have a sizeable group at EthDenver I hear.

And on another front entirely, 1Hive has partnered with Hedgey Decentralized Options to experiment with some treasury management ideas. The first round resembled traditional option markets but for round two, which just began, they are trying a different approach. They have basically grouped the five most common option scenarios into liquidity pools into-which dao members buy/invest with stablecoins. So the protocol gets to sell some native tokens for stablecoins, and the dao-members get a chance to profit via discounted purchases of those native tokens. A pic is worth a 1000 words so just take a glance at the website here and you can get the idea. Just imagine $GTC instead of $HNY, the native token of 1Hive. Maybe we can reproduce this kind of market for $GTC in-house. And probably important to mention it they are marketed as way to ‘go-long’ and support projects while benefiting by effectively locking in lower pricing of a dip. They are not so much a degen leverage tool. I can connect you with the Hedgey team if desired.

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I’m not sure if I can be a permanent member in a working group given i’m committed to other things , but happy to be part of any advisory group to help in any way. thanks

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