Treasury Tuesday 7.12.22

Current Events

• The draft KIP for a testing wallet is open for feedback. This proposal would allow more funding for Pai-Sho and Zubair in order to test the product internally rather than depending on third parties. $600k in funding has been requested. (0:30m)
• Maple Finance withdrawal is in progress due to the availability of funds in the pool. Overall, DaddyMatty has not been happy with this process and would prefer to cease future dealings with Maple. (3:50m)
• Q3 Labs budget request would adopt a mission-based budget (similar to KIP-15) to outline a strategic plan with more granular objectives to determine budget and resource needs for teams across the organization. (5:20m)
• Please support the Optimism Governance Fund Phase 1 Proposal that would grant Rook funding to build and integrate with protocols on Optimism. (6:40m)
• AAVE stablecoin launch could allow for interesting use-cases. (7m)
• Aztec Connect, “The Privacy Layer for Web3”, has launched. The team would like to host a Layer-2 AMA panel with interested parties. (7:50m)
• Binance incorrectly reported a UniV3 exploit. The team urges caution, especially in bear markets when bad actors are particularly desperate. (8:26m)
• The last CVX gauge vote ended Rook’s commitments with Alchemix. Due to the uncertainty of the markets, the team will be considerate with plans on what to do with the assets. Most likely, the team will return to the status quo of converting rewards into stables or ETH to build the treasury. (10:14m)
• Alchemix has offered to open their currently capped stETH and rETH vaults to Rook, which could be an additional option in the ETH deployment strategy. (12:35m)
• The Treasury Charter is nearing completion. The question arises of whether this charter should go through a standard governance process, or simply be an open document to serve as a “guiding light.” The consensus is that going through governance gives the charter a more official “stamp of approval.” (13:50m)
• Deetz announces that the Treasury Discord Bot is close to release, and should be ready this week. (18:00m)

Initiative Collaboration and Discussion

• The Bancor proposal is being pushed through. The plan is to migrate funds to v3 and then pull positions. (23:00m)
• Non-Core Asset Proposal includes Votium bribes, collecting eligible airdrops, etc. This proposal is designed to give the treasury team discretion on trading assets worth <$100k. (23:30m)
• Research continues on stablecoin deployment, though it has been on the back burner. (26:30)
• The team has been cautious with ETH deployment strategy, including stETH (Lido) & sETH2 (Stakewise), due to “peg” deviations from ETH. More clarity on this topic next week. (27:06m)
• See Stablecoin Matrix. (28:35)
• Starfire is excited about the AAVE stablecoin (GHO), and believes it will open up new and interesting opportunities. (29:57)
• Wes is focused on researching Euler Finance. Euler is a permissionless borrowing/lending platform that uses the Uniswap TWAP oracle where liquidators receive incentives, which is a potential revenue source for keeper bots. The team needs to investigate the technical feasibility and total liquidation numbers to determine if integration is worthwhile. (The Dune dashboard shows fairly low liquidation numbers). Deetz and DaddyMatty are in comms with Euler. (30:45m)
• Next week Deetz will be able to report on CVX statistics and take-aways from the Alchemix deal. (37:08m)