[RFC 0] - Putting the Treasury to Work

Summary / Motivation
As already mentioned in previous forum topics and discussed among others by @PopcornResearch and @MattJ we have about 4M USDC in our treasury that aren’t “put to work”. That money doesn’t earn yield via existing products/platforms or work towards our goals like fighting climate change or poverty etc. We should change this sooner than later especially since we might need more money in the future.

However, before we can vote on any direct investments we need to define which kind of investments we are fine with and work towards our (long term) goals, are not too risky (we need that money), make for good publicity etc.

Steps Done

  1. Let’s start with defining (and discussing) a list of criteria a possible investment should fulfil

Next Steps

  1. then find investments and rate them based on how they perform regarding those criteria
  2. investigate with the core team how much of the treasury is really available for investment
  3. create an Popcorn Improvement Proposal we can snapshot-vote on

Current phase: “find investments & rate them” → please suggest new or discuss existing investments and rate them (from — to +++) by creating a new reply. Deadline for feedback in this phase is is Wednesday the 15.01.2022 at noon CET.

Results so far (work in progress)

Criteria
A possible investment

  • should be environment-friendly (PoS or on its way to PoS for 1st Level tokens)
  • shouldn’t have similarities to a a ponzi scheme (e.g. like many of those Olympus Forks)
  • should be advertisement towards our core values/goals
  • should be sustainable (long term ROI like in stable coin LP farming)
  • shouldn’t be too risky (e.g. YoY we shouldn’t risk more than 50% of our position in that investment)

Possible Investments

Change Log

11 Likes

Can I :heart: this like a million times? Thanks @ToBe!

Add to it:
Should maintain some degree of liquidity for unforeseen or urgent costs that arise

3 Likes

:heart: back :wink:

Regarding the liquidity discussion I have added a step before the final snapshot vote step.

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I have updated the RFC with a deadline for the first phase: It will be Sunday the 09.01.2022 at noon CET.

1 Like

Update: After gathering the criteria for investments we are now in phase 2 → gathering possible investments and rating them (— for doesn’t fulfil a criterium at all to +++ fulfils criterium completely). Also every - or + increases/decreases the final score.

This phase will end on Wednesday 12.01.2022 at noon CET.

My first suggestion is staking Klima via Klima.finance
Rating:

  • environment-friendly: +++
    Reason: tries to “create a black hole for pollution certificates” and runs on an Ethereum L2 Polygon with low energy consumption.

  • not a ponzi scheme: -
    Reason: Has high stacking rewards (and therefore high inflation). Maybe someone is left to hold the bag if too many people cash out.

  • advertisement towards our core values/goals: ++
    Reason: POPCorn wants to do good and doing something against climate change is one of those “good” things :). However staking Klima is not selfless giving to a good cause.

  • sustainable (long term ROI like in stable coin LP farming): -
    Reason: It might be only sustainable in terms of ROI in the short to mid term if buying pressure decreases further and inflation (staking rewards) stay too high.

  • shouldn’t be too risky: -
    Reason: As mentioned before Klima is trading quite far above its risk free value. If there is a real crypto bear market incoming we might see -50% short to mid term

Overall score: 2

4 Likes

Plugging into Anchor Protocol at 19.49% APY comes to mind. I think it checks all criteria except for 3.

Edit: Rating

  • Enviroment-friendly: ++
    Reasons: The Anchor rate is powered by a diversified stream of staking rewards from major proof-of-stake blockchains. Proof-of-stake blockchains use significantly less energy than proof-of-work blockchains

  • Not a Ponzi Scheme: +++
    Reason: Stake and reward will be in UST so not any bag holding risk in that department

  • Advertisment towards core values/goals: +
    Reason: Well, not much “doing good” here. Unless if we agree that the end justifies the means.

  • sustainable (long term ROI like in stable coin LP farming): ++
    Reason: Like I stated earlier Anchor stake and yields are in UST. I’m not 100% if the 19.49% APY will be the same in the foreseeable future. It was 24% not so long ago. Crypto regulation could potentially reduce the yield percentage.

  • shouldn’t be too risky: +++
    reason: Again, everything is in stablecoins. We also have the option of purchasing insurance if we take the Anchor path

Overall score: 11

Bonus Idea: Maybe we can do it via Coinlist and possibly look into participating in their very profitable ICOs? We can create a situation where one needs to hold and lock a certain amount of POP to join the ICO crowdloan. That should further give POP more utility and reduce selling pressure.

5 Likes

GoodDollar is a non-profit decentralized protocol designed to deliver sustainable and scalable UBI.

The GoodDollar G $ token model leverages performance protocols to sustainably fund the minting of new G $ tokens that are distributed as UBI for recipients and rewards for protocol supporters.

250,000 worldwide from more than 180 countries have received more than $ 25,000 in G $ UBI from a market capitalization of $ 300,000, and the protocol has between 40,000 and 80,000 members who claim G $ daily. Members focus on key emerging economies for financial inclusion: dashboard. good dollar organization

GoodDollar is launching V2 where we are integrating with the AAVE protocol to allow our community of followers to stake their USDC while sharing the returns from our UBI protocol and earning G $ in rewards.

The GoodDollar protocol proposes to Aave Grants DAO a request to increase liquidity in our participation contracts to increase the value of UBI distributed to members every day. Our application is for popcorn DAO is not a grant per se, but a loan of 500,000 USDC staked on the GoodDollar protocol.

The USDC 500,000 stake commitment will increase the revenue streams of our inclusive economy and allow the Popcorn community to gain governance in GoodDAO Community Governance, strengthening collaboration between the two ecosystems.
What is GoodDollar?

GoodDollar is an Ethereum protocol on a mission to harness new digital asset technologies to enable all people to experience, learn, and join the digital economy. To ensure maximum participation, we are creating innovative products that are inclusive by design. GoodDollar envisions a world in which everyone has access to basic economic assets, in accordance with the principles of Universal Basic Income (UBI).

The GoodDollar Foundation, a non-profit NGO sponsored by eToro, recently completed the implementation of a fair launch protocol in both G $ and Governance tokens, neither of which was distributed to core team members or the Foundation. .

Since launching our Proof of Concept (v1) in September 2020, we have grown GoodDollar’s global community to over 250,000 registered users, of which over 80,000 access their GoodDollar wallet app every day to claim. G $, a reserve-backed cryptocurrency. . The issuance of G $ is governed by a modified Bancor formula bond curve, so the price and supply of G $ are a function (Bancor function detailed in the Appendix of the GoodDollar whitepaper) of how much money there is in the reservation contract.

The main input (in addition to the direct minting of G $ through the purchase of this reserve contract) of this bond curve, which is used to generate new G $ for the distribution of UBI (see distribution and impact in the document GoodDollar technical), is the return generated by our participation contracts as a result of their integration with third-party DeFi protocols that earn interest, such as Aave and Compound.

GoodDollar V2

Our PoC demonstrated that the GoodDollar system can successfully generate an inclusive and sustainable crypto UBI for anyone who wants to join the digital finance ecosystem. Now with GoodDollar V2 4, we want to expand the protocol and increase the amount of G $ that we can distribute to our UBI claimants. To further this goal, we are introducing a new set of capabilities, which are outlined in the following graphic:
Perhaps the biggest change is that GoodDollar V2 will include two participation rewards contracts. This is a big difference from V1, which only integrated the Compound protocol and offered no rewards. All returns were to the protocol).

With V2, we will add an Aave participation contract, along with a new rewards mechanism to incentivize those who wish to support the decentralized GoodDollar UBI system. The Rewards scheme works as follows:

The rewards vary depending on the third party protocol (eg Compound, Aave, etc.) and the currency pair selected by the user.

Participation rewards are calculated in G $ values, as set out in the smart contract (for example, XM G $ in rewards per month).

The rewards are prorated based on the amount of capital staked per block.

In short, users are rewarded in each block, based on the following calculation:

$ (UserStake / TotalStaked) * (Reward per block) $

Users can choose not to withdraw their assigned rewards, which would be redistributed as incentives, helping to attract additional participants.

The initial participation rewards mechanism is assigned as follows:
The rewards vary depending on the third party protocol (eg Compound, Aave, etc.) and the currency pair selected by the user.

Participation rewards are calculated in G $ values, as set out in the smart contract (for example, XM G $ in rewards per month).

The rewards are prorated based on the amount of capital staked per block.

In short, users are rewarded in each block, based on the following calculation:

$ (UserStake / TotalStaked) * (Reward per block) $

Users can choose not to withdraw their assigned rewards, which would be redistributed as incentives, helping to attract additional participants.

The initial participation rewards mechanism is assigned as follows:

Compound (DAI) Total Reward Per Block = 138.88 G $ | (291M G $ yearly) Aave (USDC) Total Reward per Block = 69.44 G $ | (145.5M G $ yearly)

Currently, more than 1 million DAIs are deposited in our compound participation contract 1.

We believe that the integration of Aave V2 will be an important incentive for our fans. That is why we are looking to forge a partnership with Aave Grants DAO that will help us drive the aggregation of liquidity in this participation contract.

With the release of GoodDollar V2, we will also introduce a new DeFi concept called Social APY, which calculates the returns that users generate for our global GoodDollar community through their bets. This key measure of supporter impact is calculated based on the APY that each third-party protocol offers to a specific asset (for example, USDC in Aave), divided by the reserve ratio of the bond curve issued by the G $.

Therefore, for an Aave APY of 3.44% in USDC and a reserve ratio (total GoodDollar reserve value / GoodDollar market capitalization) of 80%, the social APY would be 4.30%. The financial APY, on the other hand, is calculated according to the reward scheme outlined above.

Below is a screenshot of how these two measurements would appear on our V2 Dapp (currently only available on Kovan TestNetwork). 6):

The idea is to stake a part of usdc right now, the apy is currently high and you earn popcorn and at the same time they help more than 75 thousand claimants to have a basic unervesal income every day

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I am a GoodDollar user because I am aware of a geopolitics where the UBI should be of exceptional value in the equation where technology is also.

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I definitely agree with Klima. The potential incoming bear market is something to consider but I feel that KLIMA’s values/goals lining up with ours alongside profitability supersedes potential risk.

1 Like

I +1 your GoodDollar suggestion, as I’ve been watching them for a while and see the efforts they’re making. It’d definitely be a good idea to get involved with them.

4 Likes

Let’s do it!

Hey, This is Gus, I’m Protocol Community Lead at the GoodDollar team.

The TL;DR; is we have a set of smart contracts called Trust Fund, it aggregates liquidity from UBI supporters liquidity providers, it aggregates yield to our bonding curve reserve to mint G$s based on a decreased through time reserve ratio, and currently distributing to 40k unique humans daily (we have 200k registered low-income not crypto familiar users, our scope includes to educate them).

The mentioned yields for staking are not that really much as show in the +500% USDC (yeah, we decrease the reserve ratio for minting incentive), but in total is around 58k USD yearly (at current G$ prices), so that high yield is for the current 5k liquidity.

Since we launch the V2 last Dec 21st, the only considerable (1M DAI) stake is from eToro (we are their CSR project, they fund development as well), so we are starting to look for partnerships like this one

G$s are not pre-mined BTW and current value in reserve is less than 500K, reserve ratio has decreased from 100% to 84% in 1.5 years (see token section of our dashboard.

4 Likes

yeah, we can be considered as a DeFi2.0 or Protocol Owned Liquidity model (actually we launched way before that term came), we are actually a BancorV1 fork (GoodSwap.xyz is our G$ liquidity on demand AMM), but we are not a ponzi because we are in the mission to give utility to our token (basic reason for starting with a 100% ratio is impossible for a Medium of Exchange currency to start with real utility), and we are slowly making it, you guys know how tech adoption goes.

In any case, regarding inflation:

  • Our staking G$s rewards are not that high. But we are looking forward to incentivize more with GOOD rep (non-transferrable) governance tokens, so DAOs like yours can gain governance over ours.
  • Protocol decreases reserve ratio (and therefore inflation) in favor to the UBI distribution, expansion rate also subjected to GoodDAO governance.
  • What we want to do is to optimize the aggregation of liquidity for Good, for growing and sustaining the value for a UBI distribution where incentives al aligned among all the GoodDollar stakeholders, UBI supporters, stakers, LPs, and ofc UBI claimers (who BTW are the one receiving the more GOOD for GoodDAO governance).
  • We really want to optimize the liquidity aggregation by increasing volume of G$s transactions and sustaining demand, we are not there yet, as we haven’t being able to deliver much value (not as $UBI is doing), but this is the way we can foresee UBI sustainability in the long term.
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WAGM! Hagámoslo posible.

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WAGMI hagamos pocible

Interesting idea :slight_smile: could you please rate it based on the cirteria defined before?

And @josead11- gooddollar also sounds interesting. Could you please rate it based on the cirteria defined before? (see my Klima post)

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+1 GoodDollar. Cumple los requisitos expuestos en klima

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  • environment-friendly: +
    Reason: runs on Ethereum & FUSE (DPOS EVM) with low energy consumption.
  • not a ponzi scheme: -
    Reason: as it’s cryptoeconomics produce inflation but at current low rates and will expand through time while suiting users and market utility. Goal is to optimize liquidity aggregation for good for a UBI currency and organic value creation.
  • advertisement towards our core values/goals: +++
    Reason: GoodDollar aims to socialy distribute Earn and yields on UBI supporters cryptoassets while creating real world impact
  • sustainable: +
    Reason: G$ UBI is designed to be sustainable in the long term, still there are many challenges to solve through market behaviour and governance.
  • shouldn’t be too risky: +++
    Reason: Action to stake selected amount (let’s say 500k USD) has close-to-zero financial risks (3rd party protocol AAVE). As per the smart contract risks, contracts are audited and submitted to bug bounties.

Overall score: 7

1 Like

Hey! I’m just reading the iddle liquidity is of 4M USDC, and draft GoodDollar request is to stake 500k but It actually could be more if there are not further candidates.

Can I ask how do you guys decide on the ammount to be invested?

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This is a rough discussion of ideas, but this is the first deliberation we’re having of this. So initially we discuss potential amounts/potential investments, then we bring these values to the core team. If they agree with the investment amount then we will move it to a snapshot proposal, but any feedback they provide we will consider before anything.

Our DAO system is something we’re working on, in terms of how we make these decisions. However, this is the fairest route currently

2 Likes