#38 Treasury Policy Amendment

Treasury Council Decisions
1

TCD #38 Treasury Policy Amendment

This amendment proposes a partitioning of the overall portfolio. This will allow specification risk management per partition where differing approaches are required.

Partitions Summary

  1. Operating Reserves: fully liquid assets needed to spend

  2. Stable Runway - 1 Year

  3. BADGER Runway - 1 Year

  4. Ether Runway - 1 Year (revisit for gas)

  5. Market Liquidity (*optimize ranges for efficiency)

  6. on-chain AMM: UniV3 - no change

  7. off-chain market maker: GSR - no change

  8. Liabilities

  9. Vesting

  10. remBADGER

  11. Investment Fund

  12. Discretionary funds to be deployed by Treasury Council

Considerations for each partition:

  • The overall portfolio composition should be considered by deciding the allocation for each partition. Below are the current suggestions for each partition, however this composition should be finalized by the Treasury Council and may be subject to future changes.
  • Individual management policies should be implemented for each partition including cadence, risk tolerance, and any other appropriate restrictions.
  • BIP 89 guidelines must still be adhered to for discretionary funds.

Runway (~$6.3m)

Stable Runway ($2.3m)

  • Proposed: as per existing treasury policy, keep 1 year of stable runway in liquid assets. At budgeted $192.5k/mo (TCD#30), that is $2.3m.
  • Current: holding $4m in liquid stablecoins; $1.7m surplus

Native Runway (416k BADGER + $3m in BADGER)

  • Proposed: as per existing treasury policy hold 1 year of liquid native runway. At budgeted (TCD#30) 35k/mo (16k/biweek) BADGER for incentives, plus $245k/mo in BADGER for contributors, at a current spot price of $2.25 that is 416k+(245*12/2.25)=1.3m BADGER.
  • Current: 1.7m BADGER, but that is including what is earmarked for remBADGER and the tree. excluding that, we hold 1.3m liquid BADGER (no deficit or surplus, exactly enough).

Ether Runway (40 ETH)

  • Proposed: as per existing treasury policy 1 year of ether runway. was never budgeted, but we are using 10ETH for quarterly topups. so would be 40ETH.
  • Current: 20 liquid ETH and 40 liquid WETH in wallets at the moment; 20 ether surplus.

TCL (~$6m + 500k BADGER)

  • Proposed:
    • Onchain: adhere to BIP74: have at least the active range and one below and above that deployed.
      • Exception: DIGGAURAGRAVI ($820k). Which will be deprecated.
    • Offchain: deal with GSR is 200k BADGER for the first 6 months, then another 300k BADGER for the second half year.

Liabilities (257k BADGER)

remBADGER (257k BADGER)

  • Proposed: already defined by restitution BIP80.
  • Current: currently a dripper deposits into the remBADGER vault on a weekly basis. It holds 153k BADGER and will run out at the end of the current restitution program (EOY). Same for the dripper depositing into the tree for emissions to the remBADGER holders (204k BADGER left). No action needed.

Investment Fund (Remainder)

The remaining funds will remain discretionary and be deployed by the council following the guidelines in BIP89.

image
image1170×447 41.6 KB