USDC pool on Pooltogether seems like the way to go! Pooltogether is heavily undervalued in the first place so the POOL tokens are a bargain. I hope we allocate a nice chunk of the USDC and it should pay off down the road.
1 Like
POOL could be considered, but will likely be relegated to one of the higher risk tranches since payout in a third party token would increase risk vis-a-vis an auto-compounding vault like Yearn’s.
Regarding the general strategy for capital allocation, Mason and I have been discussing https://defisafety.com/. The author has a decent framework for assessing projects based on code, team, documentation, testing, and audits. BadgerDAOs 65% score report is here: BadgerDAO PQ Review - PQ Reviews
Mason has suggested adding time since launch, TVL and R/R metrics surrounding earned assets to the list as well. I’ve reached out to the DeFi safety team for feedback on contributing reports of my own for some of the new, more speculative projects like Float or Dollar Protocol, as at a minimum I would expect any project that the DAO invests into would at least need one of these assessments done.
1 Like
Good arguments here. I would support this. Been following pool for quite awhile. Very solid project.
1 Like
May be we should consider DUSD? It is backed by DAI, USDC, USDT and sUSD which reduce the risk and volatility. There is quite good APY for crvDUSD on yearn.finance … An let’s not forget that DefiDollar (DUSD) are partners of Badger DAO and we will be launching ibBTC together.
Thanks for Sharing these. We’ll stick with Defi but these are good low risk A tranche allocations.
For B tranche this is a decent outline: https://newsletter.banklesshq.com/p/the-best-yields-on-usd
The recommended profile is 22% at “zero” (blockchain) risk, 47% at low (protocol) risk, 23% at low-medium risk with farmed asset price considerations, and 8% speculative high risk/high reward plays.
We’re actually working on a Badger Ape committee of well known players in the space to help manage the C tranche and give Badger exposure to the best up and coming projects.
This is a potential option, governance will have to decide what to do with assets. We don’t want to be parasitic farm and dump, the target goal should be farming things we want to hold.
There are things in the works with Alchemix. I think it’s a great allocation here because it actually empowers other farming.
At any time any community member can submit a sufficiently reasoned BIP to change a parameter within the farming profile. I elect in the meantime we aim to revisit at minimum every two quarters.
We’re working on a framework for this now. Tranches A and B are meant to be low enough risk that they don’t need much extra due diligence. We can have a one page sheet style to report any farm participated in, could generally be useful for the market. 40% on tranche C is high but it’s already speculative projects. If we trust the code on something but expect a very limited time high return, being able to shift 40% of the pool quickly could net considerable results.
I don’t think DPI really lowers our Beta much, would prefer direct treasury swaps with other projects. For diversifying Badger, making it an ultra flexible and liquid form of collateral is the best move.
The plays in the near term of higher risk tranche would typically be projects looking to create new stable dollars, given our position in the market and our own desire to create sovereign stable assets I believe it is part of our mandate to be early players in these assets as they pop up.
Have been reading about the Pool token liquidity mining, I like this allocation for the B tranche and the potential community synergies.
The Curve pools look pretty good. Thanks for pointing these out
2 Likes
When did the scattershot go active? I must have missed it. Was it announced?