Uniswap's governance treasury will retain 43% of $UNI supply vested over 4 years, currently allocated 113 million in $UNI. Current value ~ ****$2.724 Billion USD. Max drawdown starting on May 3 2021, in 20 days $UNI lost 71% of it's value, a loss of ~ $3.616 Billion USD. We need to manage this systemic risk and volatility for the long term success of the community treasury.
Partial divestment of Uniswap governance treasury by using UMA Synthetic KPI Options to create a win for the treasury, a win for the protocol and a win for the stakeholders. Long term goal would be to put together an actively managed portfolio for the treasury aka uniHOUSE.
TVL Metric is only an example. There have been suggestions on using other metrics to measure the KPI for this option. It is currently an open issue which we can delve into more after the temperature check.
Yam.finance has been leading the charge on treasury management for DAOs via our project DAO House: https://yamfinance.medium.com/yam-finance-presents-dao-house-86625f9bae5a
We've realized that there are significant systemic risks for DAO's treasuries. During the bear market of 2017 multiple projects were forced to sell their treasury at historically low values, which ultimately caused many of them to disband and shutter.
Treasury management is mission critical for DAOs, yet the challenges and complexities are formidable. Sushi realized this systemic issue and collaborated with Yam.Finance to build a custom treasury management solution called sushiHOUSE: https://forum.sushi.com/t/sushihouse-a-treasury-management-proposal/3106
The most difficult part of a treasury management solution for a DAO as large as UNI, is the first part, the treasury protocol token divestment. I present a novel solution that will benefit the treasury, the long term success of the protocol and also all stakeholders.
A quick primer on UMA: https://docs.umaproject.org/getting-started/how-uma-works
By using UMA's platform, we are able to use battle tested UMA financial contracts to create KPI options. Here are some examples of current KPI options that are already deployed and distributed.
https://medium.com/uma-project/uma-kpi-options-and-airdrop-bae86be16ce4
KPI options can be created by using UMA's battle tested UMA financial contracts.
From example above, KPI Option is created by:
UNI's community treasury is able to utilize its treasury full of UNI tokens to create these KPI options.
Win - Win - Win
Yam.finance has extensive knowledge on building synthetics on UMA's platform via our development of degenerative.finance, V2 of site to be launched soon. Combined with our experience in DAO treasury management, it allows us to have a unique perspective to create this proposal.
https://forum.sushi.com/t/build-kpi-options-with-uma-to-speed-kashi-adoption/3940
https://etherscan.io/token/0x1f9840a85d5aF5bf1D1762F925BDADdC4201F984?a=0x1a9c8182c09f50c8318d769245bea52c32be35bcc09f50c8318d769245bea52c32be35bc
Uniswap's governance treasury will retain 43% of $UNI supply vested over 4 years, currently allocated 113 million in $UNI. Current value ~ ****$2.724 Billion USD. Max drawdown starting on May 3 2021, in 20 days $UNI lost 71% of it's value, a loss of ~ $3.616 Billion USD. We need to manage this systemic risk and volatility for the long term success of the community treasury.
Partial divestment of Uniswap governance treasury by using UMA Synthetic KPI Options to create a win for the treasury, a win for the protocol and a win for the stakeholders. Long term goal would be to put together an actively managed portfolio for the treasury aka uniHOUSE.
TVL Metric is only an example. There have been suggestions on using other metrics to measure the KPI for this option. It is currently an open issue which we can delve into more after the temperature check.
Yam.finance has been leading the charge on treasury management for DAOs via our project DAO House: https://yamfinance.medium.com/yam-finance-presents-dao-house-86625f9bae5a
We've realized that there are significant systemic risks for DAO's treasuries. During the bear market of 2017 multiple projects were forced to sell their treasury at historically low values, which ultimately caused many of them to disband and shutter.
Treasury management is mission critical for DAOs, yet the challenges and complexities are formidable. Sushi realized this systemic issue and collaborated with Yam.Finance to build a custom treasury management solution called sushiHOUSE: https://forum.sushi.com/t/sushihouse-a-treasury-management-proposal/3106
The most difficult part of a treasury management solution for a DAO as large as UNI, is the first part, the treasury protocol token divestment. I present a novel solution that will benefit the treasury, the long term success of the protocol and also all stakeholders.
A quick primer on UMA: https://docs.umaproject.org/getting-started/how-uma-works
By using UMA's platform, we are able to use battle tested UMA financial contracts to create KPI options. Here are some examples of current KPI options that are already deployed and distributed.
https://medium.com/uma-project/uma-kpi-options-and-airdrop-bae86be16ce4
KPI options can be created by using UMA's battle tested UMA financial contracts.
From example above, KPI Option is created by:
UNI's community treasury is able to utilize its treasury full of UNI tokens to create these KPI options.
Win - Win - Win
Yam.finance has extensive knowledge on building synthetics on UMA's platform via our development of degenerative.finance, V2 of site to be launched soon. Combined with our experience in DAO treasury management, it allows us to have a unique perspective to create this proposal.
https://forum.sushi.com/t/build-kpi-options-with-uma-to-speed-kashi-adoption/3940
https://etherscan.io/token/0x1f9840a85d5aF5bf1D1762F925BDADdC4201F984?a=0x1a9c8182c09f50c8318d769245bea52c32be35bcc09f50c8318d769245bea52c32be35bc
Good point. Delegated UNI is likely to only increase, as the UNI float increases (via liquidity incentives, vesting, etc), and delegation tools improve.
More important now to surface individuals with good ideas that may not otherwise have a voice.
nothing but love for this :rocket:
Strongly in favor - 10m votes is a high requirement, even with autonomous proposals and fish.vote making this easier. Lowering the proposal threshold is a great way to create a more active and involved governance process where more users have a voice.
There are probably good arguments to lower the quorum threshold as well, but this is a good first step.
Good point. Delegated UNI is likely to only increase, as the UNI float increases (via liquidity incentives, vesting, etc), and delegation tools improve.
More important now to surface individuals with good ideas that may not otherwise have a voice.
nothing but love for this :rocket:
Strongly in favor - 10m votes is a high requirement, even with autonomous proposals and fish.vote making this easier. Lowering the proposal threshold is a great way to create a more active and involved governance process where more users have a voice.
There are probably good arguments to lower the quorum threshold as well, but this is a good first step.
If anyone is interested, the currently live Uniswap Proposal does give admin control of Uniswap to a new smart contract. Since I haven't seen any discussion about WHAT that smart contract actually contains, I thought I would share. (Spoiler alert: looks fine)
Current Vote: https://www.withtally.com/governance/uniswap/proposal/4
If anyone is interested, the currently live Uniswap Proposal does give admin control of Uniswap to a new smart contract. Since I haven't seen any discussion about WHAT that smart contract actually contains, I thought I would share. (Spoiler alert: looks fine)
Current Vote: https://www.withtally.com/governance/uniswap/proposal/4
Diff Check on the Current Governance implementation and the proposed new one: https://www.diffchecker.com/v8yh0o7n
Good idea, good point. You have my vote.
Big fan of lowering the proposal threshold!
Great idea, its necessary if we want things to start moving more around here !
LOVE this. Lowering the threshold for the formal proposal will hopefully encourage and empower more active participants in governance. The recent activity has been great, so we should really be capturing this momentum and embrace the accessibility of participation similar to how gitcoin does.
The question around quorum I think will become more clear once more proposals come through the pipeline if this passes. Excited to see!
If anyone is interested, the currently live Uniswap Proposal does give admin control of Uniswap to a new smart contract. Since I haven't seen any discussion about WHAT that smart contract actually contains, I thought I would share. (Spoiler alert: looks fine)
Current Vote: https://www.withtally.com/governance/uniswap/proposal/4
If anyone is interested, the currently live Uniswap Proposal does give admin control of Uniswap to a new smart contract. Since I haven't seen any discussion about WHAT that smart contract actually contains, I thought I would share. (Spoiler alert: looks fine)
Current Vote: https://www.withtally.com/governance/uniswap/proposal/4
Diff Check on the Current Governance implementation and the proposed new one: https://www.diffchecker.com/v8yh0o7n
Good idea, good point. You have my vote.
Big fan of lowering the proposal threshold!
Great idea, its necessary if we want things to start moving more around here !
LOVE this. Lowering the threshold for the formal proposal will hopefully encourage and empower more active participants in governance. The recent activity has been great, so we should really be capturing this momentum and embrace the accessibility of participation similar to how gitcoin does.
The question around quorum I think will become more clear once more proposals come through the pipeline if this passes. Excited to see!
What is the worst that can happen by lowering threshold? More stuff to vote on?
Yeah, I think the proposal threshold moving to 2.5M is a conservative step in the right direction.
Someone pointed out the other day that since Dharma's first proposal to lower quorum, the number of delegated UNI has more than doubled from 80M to 170M. So reaching quorum isn't as much of an issue at this point.
However, it's still extremely difficult to get 10M UNI votes as an individual.
What is the worst that can happen by lowering threshold? More stuff to vote on?
Yeah, I think the proposal threshold moving to 2.5M is a conservative step in the right direction.
Someone pointed out the other day that since Dharma's first proposal to lower quorum, the number of delegated UNI has more than doubled from 80M to 170M. So reaching quorum isn't as much of an issue at this point.
However, it's still extremely difficult to get 10M UNI votes as an individual.
