[RFC] Smart Treasury Discussion

@BigBrainBriner I like this approach.

Let’s change the nature of the split to favour currency then. The weight of PICKLE is basically the percentage of revenues we want to go to a buyback (or the percentage of revenues past the cap, if a stablecoins cap exists). I’d propose we pump it to 30% as in a 30PICKLE-70ETH pool.

How much to “trial”?. Of course, we wouldn’t want Treasury erosion. If I imply correctly from your suggestion of $250k if it is 10PICKLE–90ETH (also assuming “currency” to be ETH since that’s what we will be paying stakers in anyways) then you wouldn’t want to put more than $25k on PICKLE to start? That leaves a 30PICKLE–70ETH proposal with a starting volume of $83.3k-odd. Seems lowish, maybe we can go $150k.

DevFund swap and price. I am satisfied with this idea. We can use the implied Uniswap price. Think that’s fair. But as @pipickle mentioned for appearances’ sake I think complementary to this swap we could take an opportunity to bring some guidelines to the use of the DevFund. Especially now the multisig has non-Dev members. Is this fund for the development of the protocol (i.e. operations, in-house design/engineering/r&d, salaries)? Or, is it compensation for the developer-founders? Are withdrawals then possible at any moment and for any amount – or should there be some allocation/vesting – or subject to DAO approval? These answers would all be appreciated by the community.

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Finally got around to reading this thread…I wanted to be completely focused to understand the complex machinations being proposed.

@leekuanjew wow! you really have a grasp on this stuff :brain:
@Lyucei and @brinosaurus_rex raise some excellent points as well

Personally, I lean towards the conservative side when it comes to Treasury funds because while a rising tide may lift all boats, the converse is equally true and I would hate to find ourselves in a pickle just because we tried to maximise Treasury yields.

Since @BigBrainBriner just announced a $500K Treasury cap, we could possibly allocate $100K to initialize a Smart Treasury and see how it goes. If successful, we could then propose to increase the total cap to say, $750K, adding another $250K to the Smart Treasury, and so on…

We retain $400K in stablecoins at all times…

Baby steps…

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See what you did there, ser.

@yyctrader I like the idea of including the Smart Treasury inside the Cap.

Thus making

capped_treasury = strategic_stablecoin_fund + smart_treasury

I also like your babySteps™ approach to Treasury expansion.

At least that way we get all our bellies full before we give out the excess as bonus rewards.

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yes, I think this makes sense. how about we start off with:

  1. 400k stablecoin stack
  2. 100k smart treasury trial (20% PICKLE, 80% CURRENCY)

And of course, we can adjust accordingly as time goes on. I decided on 20/80 instead of 10/90 because 10% seems too small to actually have any kind of significant effect.

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yes, I think this makes sense. how about we start off with:

  1. 400k stablecoin stack
  2. 100k smart treasury trial (20% PICKLE, 80% CURRENCY)

@BigBrainBriner I second you on that.

Modifying my suggestion above:

  • No issues with economic rationale.
  • Smart Treasury composition 20% PICKLE – 80% ETH .
  • PICKLE for Smart Treasury will come from a swap with the DevFund using $20k of the $100k allocated to the Smart Treasury from the $500k Treasury cap.
  • Trading against Smart Treasury will incur a fee of 10%. As common with AMMs, fees will just sit in the pool (Smart Treasury).
  • Controller retains rights to change Smart Treasury params. The Controller being the DAO/multisig. Params being token composition, trading fee, and token weights.

Thoughts?

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Let’s go for it - I still don’t think I have gotten my head around the true benefits of a Smart Treasury (no need to try and explain, I have read plenty :laughing: ). But enough smart people do think it’s a good idea so I am all for it.

Next PIP?

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Agreed. It’s worth exploring with $100K.

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I haven’t had time understand it all as well as I’d like yet, but just wanted to say…

It’s amazing to see the amount of time and effort being put into this discussion, and the maturity with which differing opinions are treated. Much appreciated.

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Now that PIP-17 & PIP-19 passed, I’d like to bring this discussion back to the forefront.

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Agree, let’s do it. As per @leekuanjew and @BigBrainBriner suggestions a couple of posts up.

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Agreed, we should proceed as outlined above.
A good time to take profit on the LP tokens and build our $400K stablecoin stack.

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Yep, let’s do it. Do we have specifics nailed down? How much would we want to buy from the dev fund and at what price?

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$20K worth from the dev fund at market price.
There’s absolutely no need for the team to offer a below-market deal, you guys are underpaid as it is.

Once tomorrow’s staking rewards are withdrawn, we’ll be at $500K and we can convert $400K to stables, buy $80K of ETH, and pay $20K to the dev fund.

Also, why not put the $400K stablecoin stack into pDAI? Let treasury also enjoy the juicy APYs :slight_smile:

Put it to a vote?

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Don’t we also need $80k eth?

Agree on the market price for the Dev fund pickles. Or maybe the day’s low if the Devs want to be generous :wink:

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Good catch, edited :slight_smile:

For some reason I thought we were going with a PICKLE/USDC pool :man_facepalming:

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$400k to the stablecoin stash is to pDAI sounds wholesome.

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Absolutely - I am all for the treasury depositing stablecoin funds in a safe but decent yield strategy, ie our own pDAI jar.

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Great idea. Shows that the treasury itself has skin in the game when vested in pJAR 88. Also if this is done, suggest should be used as a marketing flag! “Look here DEFI degens… a cool 1/2 a mil in our own jar from treasury shows our trust in the project”.

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I tried to outline this and marry it with PICKLE buyback:

Now that the Smart Treasury is near, this still sounds like a good plan to me.

This part, not so much :laughing:

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