TCD #52 - Adjustment to eBTC Protocol Yield Share (PYS) parameter

TCD #52 - Adjustment to eBTC Protocol Yield Share (PYS) parameter

The performance of each treasury asset and the treasury as a whole must have clear accountability to allow future governance by BADGER token holders. The following is research by $1500Badger on Adjustment to eBTC Protocol Yield Share (PYS) parameter.

TLDR; The permission to change the PYS parameter will be transferred on chain from Tech Ops multisig to Treasury Vault multisig.

Background

The permissions to change the PYS parameter is currently owned by the TechOps multi-sig. The Treasury council will be monitoring the health of the system and making adjustments to the PYS with advice from BALCO. Therefore, the permissions should be changed to the Treasury Vault multisig. This will not impact the 2 day timelock.

Implementation

The TechOps team should:

  • Transfer permissions to adjust the PYS in the future to Treasury Vault

Metrics of Success

How long will the investment thesis take to play out?

This change to the PYS permissions is indefinite.BALCO will continue to advise the Treasury Council on any changes needed to PYS in the future.

Will the treasury recoup funds or does the investment represent an outlay?

This change will allow the Treasury Council to balance the health of the eBTC system versus the funds the Treasury receives from the staked eth collateral.

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

0 - This is a parameter change so this category is not applicable.

  • Liquidity risk (0 - 10)

Liquidity risk refers to how easily an asset can be bought or sold in the market.

0 - This is a parameter change so this category is not applicable.

  • 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.

0 - This is a parameter change so this category is not applicable.

  • Credit risk (0 - 10)

The risk of loss from the failure of a counterparty to make a promised payment, this should cover airdrops expected

0 - This is a parameter change so this category is not applicable.

  • 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.

1 - This decision will require tech ops to execute a few multisig transactions, but should be relatively simple to complete.

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