# \#17 Badger/rETH TCL deposit

**URL:** <https://forum.badger.finance/t/17-badger-reth-tcl-deposit/5775>\
**Category:** Treasury Council Decisions\
**Created:** [October 27, 2022, 9:46am UTC](https://forum.badger.finance/t/17-badger-reth-tcl-deposit/5775 "2022-10-27T09:46:24Z")\
**Posts on this page:** 2\
**Page:** 1

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**Author:** ![gosuto](https://yyz2.discourse-cdn.com/flex034/user_avatar/forum.badger.finance/gosuto/32/1554_2.png) [@gosuto](https://forum.badger.finance/u/gosuto)\
**Post date:** [October 27, 2022, 9:46am UTC](https://forum.badger.finance/t/17-badger-reth-tcl-deposit/5775/1 "2022-10-27T09:46:24Z")

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_TLDR: Deposit $2m into the Badger/rETH 50:50 balancer gauge (and then into aura) with the intention of farming yield and increasing on-chain liquidity for the Badger token._

# Background

Rocket pool is a decentralized Ethereum staking pool with nearly 300,000 ETH staked at the time of writing. With the move to proof of stake being a success, having exposure to staked ETH in the Badger treasury is more important than ever. The rETH product by rocket pool can be paired with BADGER tokens on Balancer/AURA to earn fees, BAL and AURA rewards. A gauge has been approved by the Balancer governance and can now be voted on with veBAL, vlAURA or bribed through hidden hands. This deposit will also create a significant amount of liquidity for the pool to be arb’d against the existing wBTC pools.

# Proposal

Deposit $2m BADGER/rETH into the balancer gauge and move into aura to allow for voting and bribing on the LP.

# Metrics of Success

## How long will the investment thesis take to play out?

This deposit will remain indefinitely until a better source of yield is found for the ETH or in the case it is needed for operational expenses.

## What are the risks associated with each investment?

- Protocol risk (0 - 10): Likelihood of a smart contract or a system of smart contracts (protocol) is exploited or funds are lost

4: This puts funds at risk to Balancer, Aura and rocket pool, all have been audited and have a strong track record.

- Liquidity risk (0 - 10): Liquidity risk refers to how easily an asset can be bought or sold in the market.

0: There is no liquidity risk as this is an LP position.

- Market risk (0 - 10): Market risk is the risk that arises from movements in stock prices, interest rates, exchange rates, and commodity prices. Metrics to consider : VaR, skew, sharpe.

5: There market risk here comes from Impermanent Loss which is only an issue if the funds are needed prematurely or in an emergency.

- Execution risk (0-10): How long will it take to execute, how many signers on a Multisig or queue of things that must be signed first.

3: Will need to be scripted but can be done in one single tx.

 ![Screenshot 2022-10-27 at 10.45.59](https://canada1.discourse-cdn.com/flex034/uploads/badgerdao/original/2X/2/230492cdd3d2e270d653a8217f19d898d1f2b122.png)

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<div class="post-metadata">

**Author:** ![gosuto](https://yyz2.discourse-cdn.com/flex034/user_avatar/forum.badger.finance/gosuto/32/1554_2.png) [@gosuto](https://forum.badger.finance/u/gosuto)\
**Post date:** [October 27, 2022, 9:49am UTC](https://forum.badger.finance/t/17-badger-reth-tcl-deposit/5775/2 "2022-10-27T09:49:32Z")

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> <https://github.com/Badger-Finance/badger-multisig/issues/909>
>
> deposit $2m worth of $badger/$reth into the new badger/reth pool on balancer, an…d stake that bpt on aura.
> 
> see treasury decision here: https://forum.badger.finance/t/17-badger-reth-tcl-deposit/5775