DCP-9: Mainnet Governance Treasury Migration

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Author Jake Richards
Created 2022-09-13
Status Under Review

Motivation

Since launching on mainnet, dHEDGE Treasury has been accruing income from manager fees and currently has approx $700k in treasury funds on Mainnet.

These funds are held as pool tokens, and of these pools some are still actively managed and others have been closed.

See: https://app.dhedge.org/dht/governance

As Staking v2 (link: https://blog.dhedge.org/dht-staking/) will be migrating governance from Mainnet to L2 (both Polygon and Optimism), proposed is to liquidate the accrued Mainnet pool token positions to USDC and migrate these to Optimism.

Description

dHEDGE on Mainnet is still dHEDGE v1, so this version is still limited to management using spot swaps of synths.

Migrating this treasury liquidity to Optimism will enable the application of diverse management strategies, such as LPing, borrowing & lending and others.

Implementation

Two new pools will be created on Optimism:

  • dHEDGE Treasury Conservative, and
  • dHEDGE Treasury Aggressive

and of the funds migrated from Mainnet, 80% will be deposited into the Conservative pool, and 20% will be deposited into the Aggressive pool.

The composition of the dHEDGE Conservative fund will be comprised of Toros strategies suchs as Stablecoin Yield and Market Neutral Yield.

Using the “enable Trader” function in dHEDGE v2, the DAO may periodically assign management of the Aggressive fund to a suitable active manager.

The proposed manager for the initial period is @relativeread.

Fees will continue to accrue on Mainnet as previously, and dHEDGE will continue to liquidate and migrate accrued pool tokens on a quarterly period.

Voting

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3 Likes

Support this - the treasury on L1 has become inactive as the protocol activity has migrated to L2 / Polygon

2 Likes