[PIP-33] Treasury Expenditure for (1) Ruler Collaboration, and (2) Strategic Investment

Snapshot vote HERE: Snapshot

Abstract

This proposal, if passed, would allocate $300k of PICKLEs/stablecoins to:

  1. Incentivize participation on Ruler Protocol to allow PICKLE holders to use PICKLEs as collateral; and
  2. Permit the Pickle Finance treasury to make a strategic equity investment in a promising crypto company.

(1) Ruler Collaboration

Ruler Protocol provides PICKLE holders the ability to borrow stablecoins without risk of liquidation if the loans are paid back in time.

We propose allocating 800 PICKLES per week for an initial period of 4 weeks. The RULER team has committed to providing 50 RULER per week for same period. These rewards serve to incentivize liquidity.

Further information on Ruler Protocol and background discussion can be found on the Forum thread here: [RFC] PICKLE + RULER collaboration.

(2) Strategic Investment by Pickle Treasury

Pickle Finance wishes to participate in a strategic investment with $250,000 worth of PICKLES + stablecoins in a preferred equity fund raising. Participants in the current funding round include Badger DAO, Consensys, Gitcoin and other prominent DeFi entities.

This investment is for a live, in-use product relating to HR services which serve the web3 workforce. Pickle Finance would receive this project’s governance tokens with rewards accrued from those tokens going to the Pickle Treasury. Pickle would additionally own equity in this company and would benefit from liquidity events.

The Deal

a) $250,000 worth of PICKLES + stablecoins for tokens entitling Pickle to governance and fee sharing rights.
b) PICKLEs will not be sold for cash immediately as a majority of the PICKLEs will be vested over a period of 4 years. The price impact to the PICKLE token is negligible.

Motivation

Currently, the Pickle Treasury and Smart Treasury contains $1.4M worth of assets. This balance is being deployed primarily for staffing purposes. We believe that making strategic investments will ensure that the protocol continues to grow by rooting ourselves in other promising projects and the greater crypto ecosystem. This is also attractive because the other party has agreed to reciprocate with an investment in PICKLE (due to the vesting schedule).

11 Likes

Support, I like the sound of both of these expenditures a lot - one adds utility to pickle and the other is a good investment opportunity in something meaningful which will bring value to the entire space.

3 Likes

I believe this kind of collaboration between projects will be beneficial to the DeFi ecosystem which in turn will benefit Pickle.

2 Likes

Collaboration with other projects is best marketing and investment strategy, I support 2nd proposal only since I did not hear good things about Ruler protocol. 4 years vesting is smart add on to protect investors.

1 Like

I don’t know a lot about Ruler, but strengthening the position of Pickle in the ecosystem clearly has benefits. If this a preferred equity round, how would the enforcement be structured in the pursuit of liquidating the position in the future or an acquisition of Ruler?
It is awesome that Pickle is even in this position.

However, is this investment better than additional investment into our own ecosystem and growth? Adding the ability to borrow pickle is beneficial, but it will also create a mechanic for shorting pickle. Thus I would like to get a better understand of this investment in the grander scope of Pickle’s expenditures.

Also, on a personal note… disappointed this vote is happening pre-Dill, but I understand it is a timing thing. I would have definitely LP’d to participate in this vote.

3 Likes

I misread this a little and combined the 2 opportunities into 1.

1 Like

Ha Ha we’d love to “buy” RULER, albeit it is not for sale. A really ingenious protocol. No-liquidation borrowing, and also doesn’t allow for shorting as you can only borrow stables.