YIP Multipart Yam Treasury Rehabilitation Proposal
All of these will be voted on separately.
YIP Part 1 – Create Bounty of $500 for a Dune Dashboard for Yam Treasury and all related assets including multisig accounts
YIP Part 2 – Replace current Yam/WETH liquidity on sushi.com AMM (currently ~$1mm) with Yam Treasury owned liquidity by using 500k ETH from treasury and minting 500k YAM (will be burned if removed from liquidity position). Then redirecting current liquidity rewards of 5k BoU $Yam per week to the operations multisig.
YIP Part 3 – Analysis of current treasury assets and rebalancing to fit our overall long term strategy, and determining how to earn yield from assets in the treasury. Create a Request For Proposal (RFP) to hire a contractor to do analysis and report.
Abstract - What am I proposing?
YIP Part 1 – Creating a Dune dashboard for the treasury and all related assets that Yam holds for transparency and also better decision making.
YIP Part 2 – Yam Treasury owned Liquidity has been discussed here: A Roadmap For YAM (Part 4 - Protocol Owned Liquidity) - #9 by ross
Current prices of Yam and liquidity is low enough that the treasury can afford to invest in owning of our own liquidity. Additional details below and in the thread above. This is something we can accomplish right now with minimal required new infrastructure.
YIP Part 3 – Discussions around earning yield from the treasury has diminished, more efforts need to be allocated to this task. If no one has the time to allocate towards this endeavor, we should consider creating a RFP for a treasury management contractor who is paid hourly based on work performed when requested with detailed reporting.
Motivation - Why am I proposing it?
YIP Part 1 – Yam’s treasury is an integral part of Yam DAO. With accurate and transparent information on the treasury, better decisions can be made to grow the treasury and Yam DAO.
YIP Part 2 –
- The treasury creates its own Protocol owned Liquidity by using un-productive ETH that’s sitting in the treasury and pair it with newly minted Yam with a guarantee that these Yams will be burned if it is ever removed from the liquidity position.
- If and when the total LP position 5x from current value, we remove the original value of ETH to be placed back in the treasury to be utilized for benefit of Yam’s Treasury.
Current liquidity is approximately $1 million in Sushiswap’s Yam/ETH pool.
We redirect the liquidity incentives to the operations multisig. Currently Yam is paying 12,500 $YAM as incentives which will be entirely redirected to the operations multisig.
We use $500K in ETH from the treasury and pair it with $500K newly minted YAM and add to the Sushiswap’s Yam/ETH pool. If all current LPs remove their positions the pool will still have $1 million in liquidity but now it is owned by Yam’s Treasury.
If and when the treasury’s LP position grows in size to $5 million, then we remove $1 million in liquidity, burn the $500k in Yam and deposit the $500 in ETH back into the treasury.
This accomplishes many things:
- Creates Protocol owned Liquidity for Yam’s Treasury
- Yam’s treasury earns the swap fees. Currently the ETH is not producing any revenues.
- Yam’s treasury has a direct incentive to grow the value of Yam (it has skin in the game)
- Treasury value is currently ~$5 million so it will require about 10% of the treasury, but the ETH is still owned by the treasury.
YIP Part 3 – Yam’s treasury need consistent Tender Loving Care but it does not require a full time person to maintain, instead we should have a contractor that Yam can call on and ask to do a report.
Poll to Measure Sentiment
YIP Part 1 - Bounty for Dune Dashboard
- Do not create
YIP Part 2 - Use ETH from treasury, pair with newly minted YAM (if removed from LP required to be burned) and create protocol owned liquidity. All current liquidity incentives diverted to Yam’s operational multisig.
- Do not implement
YIP Part 3 - Create a Request For Proposal (RFP) to hire a contractor that is paid hourly to analyze Treasury’s growth and report new opportunities to increase value to the Treasury that are in line with current investment strategy.
- Create RFP
- Do not create
Everything is up for discussion, please put in your comments below.