TDP 41: Discretionary Management of Funds in the AM subDAO

Simple Summary

It is proposed to grant the Asset Management subDAO signer group the ability to manage assets up to 1,000,000 mUSD worth in value located in the multisig in order to be able to act more swiftly on market opportunities when they present themselves.

A monthly Asset Management report will subsequently be provided in the official forum to keep track of transactions throughout the year, as well as serve as a whitelist for protocols the group is allowed to utilize.

This is done to overall reduce the burden put on Meta Governors to ratify every single new action involving (often previously approved) fund movements performed by the subDAO in the future.

Abstract

The Asset Management subDAO is currently custodying most assets to generate yield for the mStableDAO.

More than once we’ve been unable to benefit from opportune times when the market would have allowed us to enter very promising positions due to the lag introduced by decentralized governance.

The suggested method to remedy this issue is to allow the signer group of the Asset Management subDAO to manage a pre-approved amount in value on behalf of the mStableDAO and its Meta Governors.

An initial amount of up to 1,000,000 mUSD is proposed to be managed freely by the Asset Management subDAO in protocols and assets that were previously used and ratified by Meta Governors. This is done in order to avoid introducing too much risk to this new process initially.

That restriction can be lifted at a later stage when we have observed this process to be working as expected and intended.

A monthly Asset Management report will be provided in the official forum to keep track of transactions throughout the year which will list every single transaction done on behalf of Meta Governors, and serve as a historic track record of performance.

That post will also serve for introducing a veto process to the community that will allow previously non-whitelisted protocols to be included for management. The Asset Management subDAO Cat Herder will post a non-whitelisted protocol and Meta Governors then have 72 hours to voice their veto right, and if concerns from the core community and core contributors are raised, a discussion will need to take place. If no resolution can be found, existing governance processes will need to be used as a fallback.

Motivation

With the two Convex Finance opportunities listed above, we have learned that we need a much more agile system if we want to continue to remain up-to-date against other DAOs who are already adapting to this changing landscape.

We should therefore follow suit and allow the Asset Management subDAO signer group to take advantage of ecosystem opportunities in a similar fashion.

Specification

1.) Asset Management subDAO lead signer or Cat Herder will perform management of whitelisted protocols as economically viable and report all transactions in a monthly update on the mStable forum

2.) In case of a new protocol not yet currently on the whitelist to be used, a 72-hour veto process will be initiated by the lead signer or Cat Herder on the forum in order to ratify usage of said protocol

Initial Whitelist:

Curve

Convex

Compound

Aave

Polygon

Balancer

Uniswap

CowSwap

Alchemix

dHEDGE

Ondo Finance

Synthetix

Fei Tribe

Rari Capital

3.) In case of a veto of community contributors or core community which can not be resolved, usual governace processes will be used to resolve the proposed transaction

Next Steps

Pending no significant changes to its content, this proposal will be taken to a Snapshot vote on Monday, the 25th of April 2022 .

Voting will be open for a 5 days window to give adequate time for a concurrent discussion. Governors can change their vote at any time should the discussion sway their decision. We look forward to hearing what MTA token holders have to say and seeing how they cast their votes.

2 Likes

Fully in support of this, really excited about this. Aligned with the whitelist

1 Like

Also fully support this move. It’s critical that the subDAO can take advantage of opportunities on behalf of the DAO. Whitelist looks good

1 Like

I voted in Favor! Let’s do this!

1 Like