PGP-24 l Update Treasury Strategy

Governance Proposal (PGP) Approved PGPs
1

Summary:

This proposal aims to update the Parallel treasury strategy in order to follow the latest strategic changes.

Rationale:

A year ago the MGP-17 was approved by DAO, in line with recent changes of liquidity pools and market conditions we propose to update it.

Below is the current strategy:

  • Management:
    • Ethereum: (no changes)
      • Every 4 months, claim ETH rewards from sePSP2 staking
      • Every 4 months, swap ETH for AURA tokens
      • Every 4 months, claim auraBAL from vlAURA locking
      • Every 4 months, swap claimed auraBAL for AURA
      • Every 4 months, claim APW from sdAPW staking → Deposit and stake them for sdAPW
      • Every month, bridge accumulated PAR to Polygon
      • Every month, bridge accumulated paUSD to Polygon
      • Every 4 months, lock AURA tokens and relock current vlAURA
  • Polygon PoS: (changes)
    • Every month, swap accumulated & bridged paUSD and PAR to get a 50/50 split in $ equivalent in wETH and PAR.
    • Every month, Deposit and stake acquired PAR in the p-cs-kp-eur on Aura
    • Every month, deposit and stake ETH with MIMO from the treasury in the MIMO/wETH 80/20 on Aura
    • Every 4 months, claim BAL and AURA tokens from the p-cs-kp-eur
    • Every 4 months, claim BAL and AURA tokens from the MIMO/wETH 80/20
    • Every 4 months, swap claimed BAL for AURA
    • Every 4 months, bridge claimed AURA to Ethereum

Proposed updated strategy:

  • Positions Updates:
    • Ethereum:
      • SAFE tokens → Claim unvested SAFE tokens, sell all liquid tokens for AURA
      • sePSP2 → Unstake them (28 days cooldown), sell received PSP & ETH for AURA
      • auraBAL tokens → sell them for AURA
    • Polygon PoS:
      • jEUR/PAR BPT → unstake them from Aura, withdraw liquidity, deposit the received tokens in the PAR/EURe E-CLP and stake the LP on Aura
    • Blast:
      • HYPER tokens → Claim weekly Hyperlock airdrop
      • Lock HYPER tokens for vlHYPER tokens
      • Delegate vlHYPER voting power
  • Management:
    • General:
      • Every month, swap net accumulated (after service providers payment, etc…) paUSD and PAR to get a 30/35/35 split in $ equivalent in wETH (30%), paUSD (35%) and PAR (35%)
    • Ethereum:
      • Every month, if there are not enough MIMO in the treasury to get a 80/20 MIMO/wETH share for LP, the DAO will buyback MIMO tokens at the market via TWAP in order to get the 80/20 ratio
      • Every month, deposit and stake ETH with MIMO from the treasury in the MIMO/wETH 80/20 on Aura
      • Every month, deposit and stake acquired paUSD in the paUSD/GYD E-CLP on Aura
      • Every month, deposit and stake acquired PAR in the EURA/PAR E-CLP on Aura
      • Every month, claim BAL and AURA tokens from Aura
      • Every month, swap claimed BAL for AURA
      • Every month, lock AURA tokens and relock current vlAURA
      • Every 4 months, claim APW from sdAPW staking → Deposit and stake them for sdAPW
    • Polygon PoS:
      • Every month, if there are not enough MIMO in the treasury to get a 80/20 MIMO/wETH share for LP, the DAO will buyback MIMO tokens at the market via TWAP in order to get the 80/20 ratio
      • Every month, deposit and stake ETH with MIMO from the treasury in the MIMO/wETH 80/20 on Aura
      • Every month, deposit and stake acquired paUSD in the stataUSDCn/paUSD E-CLP on Aura
      • Every month, deposit and stake acquired PAR in the EURe/PAR E-CLP on Aura (and/or EUROe/PAR E-CLP)
      • Every month, claim BAL and AURA tokens from Aura
      • Every month, swap claimed BAL for AURA
      • Every month, bridge AURA tokens to Ethereum

We propose to give the right to multisig signers, with advisory from Mimo Labs & Cooper Labs, to choose in which pools PAR (EURA/PAR, EURe/PAR, EUROe/PAR) & paUSD (paUSD/GYD, stataUSDCn/paUSD) funds would be deposited each month, as well as funds deposited in MIMO/wETH 80/20 pools between Polygon PoS & Ethereum.

We propose to give voting power from vlAURA, vlHYPER & sdAPW to Mimo Labs.

There are currently 24,601,792 MIMO liquids in the DAO treasury, representing around $145k at time of writing. This may sound like a lot, but it’s actually quite low. There is currently the equivalent of $201k worth of wETH (20%) waiting to be deposited in the MIMO/wETH BPT pool on Polygon PoS, with the equivalent of $804k worth of MIMO (80%). However, there is only $145k worth of MIMO currently in the treasury.

We therefore propose:

  • to keep a minimum of 5,000,000 liquid MIMO in the treasury.

  • in cases where MIMO are insufficient to deposit liquidity in the MIMO/wETH pool with the 80MIMO/20wETH ratio, MIMO be bought back at the market on Polygon PoS/Ethereum, using the wETH dedicated to the liquidity pool, until the ratio 80MIMO/20wETH is reached. (at the time of writing, it would be necessary to buy $137k worth of MIMO tokens (2.5% of the total supply) on the market to get the 80MIMO/20wETH ratio)

Note: If liquidity pools are to change over time, but retain the same tokens, we propose to authorize multisig signers to migrate liquidity to the new pools without the need for a DAO vote.

Means:

  • Human Resources: Multisigners will need to sign and execute transactions to update the treasury strategy and manage it in accordance with the voted strategy.
  • Treasury Resources: Described in the proposal.

Technical implementation:

Described in the proposal.

Voting options:

  • For Treasury Strategy Update
  • Against / Rework the Proposal
  • Abstain

Authors: @JeanBrasse from Mimo Labs

Community poll:

  • For Treasury Strategy Update
  • Against / Rework the Proposal
  • Abstain
0 voters
3 Likes
2

Thank you for the proposal.
As per PGP-22 Octav was subcontracted for Treasury Tracking.
May I kindly ask where I can find the report from the 01/12/2024?
I am asking this question because I would like to get a flavour how much PAR and paUSD the DAO is earning at the moment. Is this visible in the report?

Thank you

1 Like
3

Where “MIMO-token” == “PRL-token”?

1 Like
4

Hey @Squirrely
thanks a lot for the feedback, appreciated!

You can find the DAO Treasury report from 01/12/2024 here (please note that revenues from November aren’t counted due to the problem detected on November 30)

The protocol is currently earning around $140k per month (before service provider payment, etc…), where 80% goes to the DAO treasury & 20% goes to the Insurance Fund.

The month-to-month change of the DAO Treasury will be visible in the reports at the beginning of each month.

1 Like
5

Hey @NL.1
Thanks for the question!
As the migration of the MIMO token to PRL is still under discussion and not approved by the DAO, PRL is not mentioned. However in case the migration to PRL is approved, the Protocol owned Liquidity would be migrated to pools containing PRL, this via another proposal.

6

The proposal is now live on Snapshot from December 16th at 3pm CET until December 23th at 3pm CET: Snapshot

7

The proposal has been approved by the DAO, result: https://snapshot.box/#/s:mimo.eth/proposal/0x57a7339c359740071e98b859ef805510f138cfe96089fcbde3fa7977fcc59b3e