[Minutes] Monthly DILL DAO Community Call — August 2021

Core team in attendance:

  • LeeKuanJew (host)
  • Larry the Cucumber
  • Anoniminis

Call starts: Thursday, 26 August, 2021 at 0000 UTC

Agenda

  1. PIPs / RFCs on the agenda
    • PIP-41 on Fennec’s hiring
    • RFC on Frax whitelisting for DILL boosted farming
    • RFC on OKExChain (OEC) emissions
  2. OKRs for H2 2021
    • EOY1B
    • 50M annnualised revenues
    • pGovernanceV2
  3. Roadmap / Milestone items
    • new Pickle UI
      • jars and farms merge
      • re-skinning
      • account-based experience
    • FRAX backscratcher
    • QI backscratcher
    • Picklestations
    • oSUSHI plan

Discussion

on Fennec’s hiring

  • Select Committee on Continuing Operations and Compensation (SCCOC) has approved Fennec’s package after the passing of PIP-41.

on OEC emissions

  • fine to experiment with Snapshot’s “ranked choice voting” (IRV) for when the RFC goes to PIP (soon™ – it’s ready).

on OKRs for H2 in general

  • Pickle core team has done OKRs for H1 (launch DILL, new Pickle UI, get to $100M TVL) in private, reaching two goals within the first half of the year, and working on the new Pickle UI still.
  • Pickle core team wants to do OKRs for H2 with the community, RFC should be coming soon on this matter now that re-hiring of core team members with expiring contracts has been finalized. Tentative objectives for H2 are getting to $1B TVL (“EOY1B”, 10x from now), getting annualised protocol revenues to $50M (5-6x from now), and launching pickled Govenance V2 to further enhance the DAO with more decentralisation, autonomy, and organisation. Key results / major milestones to be brainstormed with community in forum.
    • SCCOC member Cerunos mentioned a point about the forum not being as visible and also liable to sybil attacks (sockpuppetry), moreover sometimes some forum accounts embarass our core team and DAO even attacking candidates for hiring.
    • off-call note by LKJ: it may be possible to integrate forum with similar Discord solution that validates wallets, so only DILL holders can participate in certain forum threads.

on EOY1B

  • several initiatives in place, high-level relying on partnerships including a Pickle partnership program (PPP) and deepening existing partnerships (Yearn, Alchemix, Sushi) while deepening new ones (Frax, QiDao, OKEx) while continuing to build in a multi-chain, multi-layer (MCML) Ethereum/EVM ecosystem.
  • interesting proposal led by DAO members Shizco and Viscanti based on building a Convex-like lego on top of the upcoming onsen Sushi governance. Using Convex-like tokenomics, pickled onsen SUSHI (poSUSHI) can have flywheel-style “pumpnomics” that benefit DILL as well. This should see an RFC soon™.
    • Larry asks about the difference with Yearn-style wrapped “veAssets” like yveCRV/yveBOOST.
    • LKJ highlights the tokenomic improvement as well as the design improvement since Convex passes “extra rewards” to the user, which Onsen also has. The symbiotism this could generate for Pickle is higher than that of Convex and Curve. Not only does Pickle become a place for LPs to get boosted Sushi rewards, but we can offer the auto-compounding option natively through a deep integration with existing Pickle Jar infrastructure. Executing on this would require hiring more devs, though.
  • Arbitrum is coming out this month, will be supported by major CEXs like Binance, Huobi, and Coinbase for L2 withdrawals. Could be major on-ramp of new users for Pickle, and also enable cheap Gauge voting, DILL locking, etc via “Picklestation”. “Zap to Jar”-like flow suggested by DAO member Cipio comes to mind for batching jar deposits at very cheap gas costs.

on other current roadmap / milestone items

  • new Pickle UI will be released in stages, next stage coming this sprint or next will be a unified page for jars and farms which includes the TVL of each jar and other other data visibility improvements and much simplifies the flow of joining the jar. Imbuing zaps comes next.
    • DAO member Entbeard asks if more clarity on the boost to be received will be provided.
      • LKJ: not on this release. Can be done, but we need to verify it’s accurate as sometimes the DILL contract needs to be tickled if a user has just increased his DILL in order for new boost to kick in.
    • Larry explains the task is quite big and a designer was brought in on contract to help out.
    • LKJ explains the delay as the result of the task including re-branding as well which was done partly with select community member, but mostly as shortages in manpower.

discussion on budget / staffing / hiring committee powers

  • Larry leads discussion on staffing shortage (numbers confirmed by 0xAnon).
    • Treasury balance sheet
      • stables in reserve: $1.4M approx.
      • ether in reserve: $0.3M approx.
      • plus smart treasury and strategic investment.
    • Treasury revenues: $3.5M yearly, based on recent week (about average).
    • Burnrate: $1.3M yearly, mostly in salaries.
    • “Default alive” scenario (revenues > burnrate).
    • Revenues approx. 3x burn.
      • DAO member Jomari half-jests about how this is very little spending.
    • Runway: around 18 months.
      • LKJ comments the team has had a stretch goal of getting runway to 24-36 months as a “bear market buffer fund”.
      • many DAO members comment that having ample hard currency reserves is important to them and potential investors as “multi-year bear markets” are completely plausible in DeFi.
      • DAO member Jomari notes that even in bear markets DeFi protocols make money, and so more realistic modelling can allow for more aggressive spending, while still working to increase runway.
  • Larry suggests empowering the SCCOC to facilitate hiring while keeping oversight.
    • discussion ensues about how government bodies and other DAO bodies balance oversight and executive powers, consensus is that the team should remain nimble and exercise executive power while elected bodies including team and non-team members can exercise oversight, with the DAO having the “power of the purse”.
    • Larry asks whether a fixed-dollar approach or percentage-of-treasury approach is favoured re: setting a hiring budget → no consensus.
      • SCCOC member Cerunos suggests using the forum’s RFC process to discuss this. Larry appoints LKJ to own this item.
    • Larry asks whether an additonal $0.5M-1M in budget would be palatable to the community.
      • DAO member Jomari and others think it’s very reasonable, noting that startups that scale keep innovating and this requires most of their resources, otherwise they wither or are crushed by the competition, and that if we want to go “to the next level” we need resources otherwise we only have capacity to do what we are currently doing.
      • LKJ suggests aiming for up to 50% of Treasury revenues to be spent and the rest to be saved (including in the Smart Treasury as automated buybacks) would be quite conservative already, but if this $1M takes us “to the next level” (e.g. to our goal of $50M in revenues) it’ll be a gamble that’s well worth it.
      • SCCOC member Cerunos suggests this is added to the RFC to get the involvement of the whole community.
  • LKJ to take the discussion, including amendments to the SCCOC’s powers, to the forum for RFC then PIP with the short-term goal of closing our staffing gap, and long-term better governance processes.

on Pickle’s anniversary

  • Anon shift’s discussion to Pickle’s upcoming anniversary celebrations.
  • Larry mentions Pickle’s went live on 9/11 but we will target the anniversary day for 9/10.
  • DAO member Jomari suggests we do an NFT which is redeemable for a “real jar of Pickles”, similar to SOCKS from Uniswap, with Pickle Finance co-branding (codename: P1CKL3)
    • Larry and others in the community really like this idea, discussion ensues about logistics. Rough plan would be for Pickle to cover the shipping costs to any address worldwide and provide a redemption portal. Airdrop this NFT to all the DILL DAO with a threshold from 10 to 100 DILL.
      • some members prefer no threshold for fairness. LKJ comments that given this alpha will be leaked no threshold or low threshold means it can be frontrun. Best solution would be something like a high threshold or “top X” (e.g. 500) DAO addresses by DILL.
    • SCCOC member Merpenduous volunteers to liaise with the company that would make the Pickles, in case Pickle Core member Chimaera isn’t available to do so. Grillo’s is the name of the company that previously approached Chimaera for a collab. The team’s efforts should be producing the NFT and any other product increment required.
    • Larry comments that during the anniversary itself, the NFT can be airdropped with the caveat that the redemption functionality will come later.
  • Other ideas like a free DILL DAO T-shirt of hoodie (Cerunos), a PICKLE airdrop (0xAnon), or a series of PFP portraits by Fennec for old-timers (LKJ) are floated but none gain quite the traction as Jomari’s “P1CKL3” idea.

question on business development area

  • SCCOC member Merpenduous asks LKJ about the team’s business development efforts and room to improve, noting that code is just the implementation where Pickle adds value but often the trust in the code is more important, and that happens at the human level when forming partnerships.
    • LKJ comments that Pickle doesn’t have a “sales engine” / “business development engine” per se, where the BizDev process would be split into prospecting or lead generation, lead qualification, pre-sales discovery, negotiation, and closing with diverse people handling these matters. LKJ reasons this is in a way not ideal since the time of assets like Larry would be better spent in a “closing role” when it comes to BizDev, however it works still as Builders in DeFi is a close-knit circle and collaboration comes hand-in-hand with composability.
    • On how to improve this, LKJ mentions “sales automation” as one potential strategic initiave. Examples include “autocompounding-as-a-service” via a “Pickle Jar factory”. Say, in a future where Pickle is closely integrated with oSUSHI and MISO, a team listing there can call the Pickle Jar factory contract as part of their launch sequence and get a jar which would be in a different UI, the jar would work out-of-the-box like a regular Pickle autocompounding jar for single or dual rewards strategy and generate fees for our protocol, while the DILL DAO can later vote to list it in the Pickle UI. Initiatives like this would reduce BizDev time significantly.
    • As a second improvement, LKJ mentions process improvements such as “decentralised BizDev support team”. For example, the Core team is currently experimenting with a “ShillSquad” group as a subset of the DAO for marketing. One could think of teams like “ShillSquad – marketing” and “ShillSquad – BizDev” that get a recurring allocation of Treasury funds and execute bounties. There are tools to achieve this in a decentralised manner, like Yearn’s CoordinApe. We can have our own CoordiBrine tool for members of the DAO to assign grants based on a merit-based ranking rather than the sort-of plutocratic nature of the general DILL DAO. There are out-of-box mechanisms to do this like Snapshot’s quadratic voting based on Gitcoin’s quadratic funding formulas (not to be confused with Pickle’s pre-DILL ‘quadratic voting’ using the square root of staked PICKLE as the unit of voting power).

question on strategic investment

  • DAO member GherkinDog asks LKJ about the status of the strategic investment approved in PIP-33 back in late March.
    • LKJ mentions that the team that was given the funds from Pickle conducted a hybrid fundraise involving other DeFi protocols and angel investors, and has finished and launched its MVP, and is currently working towards a mass market launch with a liquidity mining program.
      • LKJ has been helping the DeFi elements of the investment coalition in the past couple weeks to finalise the LM details. This is going slower than usual because there’s many parties involved, including VC-like DAOs and teams from well-known billion-dollar protocols.
      • LKJ mentions once Liquidity Mining is out, Pickle will disclose to the community the strategic invesment and then there will be a token market and a token price for the tokens the DAO received in return for its investment.
      • SCCOC member Bwar asks whether Pickle can participate in the Liquidity Mining, do anything with the tokens it receives, and how long is Pickle locked for. LKJ mentions that Pickle will continue to receive tokens for the next 4 years but there are currently some that are unvested. Pickle has committed to not selling for 4 years as part of a gentleman’s agreement, since some of the payment was done with PICKLE tokens which won’t be sold for a like-amount of time as well (like a Mexican standoff). Pickle is free to participate in the LM and has been invited to do so, but would need to come with additional capital to form the LP pair. The Pickle core team would only approach this decision together with the community once the investment has been disclosed.

Call ends: Thursday, 26 August, 2021 at (roughly) 0145 UTC (105 mins call time, approx.)

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thanks for taking the time to post these minutes

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