TCD #44 - Remove Funds From Liquis/Bunni LP
TLDR; Withdraw treasury funds from Liquis due to its illiquid nature of the received yield asset ($liq) and associated operational overhead outweighing current monthly returns.
Background
Following the approval of TCD#34, the treasury strategically deposited funds in Liquis along with a capital commitment in incentives on platforms such as HH and Paladin. However, the illiquidity of $liq has persisted and affected the treasury’s opportunity profile in recent months while requiring a bi-weekly reassessment of the strategy approach. Additionally, the extensive multisig operations on a bi-weekly basis, coupled with a relatively small APR in relation to the funds at risk, further diminish the investment profile.
Considering these factors, it is deemed opportune to withdraw funds from Liquis and keep $badger & $wbtc idle in the treasury until a more favorable opportunity arises.
Implementation
The Treasury should follow these actions:
- Withdraw the wbtc/badger liquidity pool from Liquis.
- Complete withdrawal from Bunni.
- Convert liquid rewards into $eth, specifically $olit.
Upon completion of the aforementioned operations, $badger and $wbtc assets will be held in an idle state in the vaultmsig.
