Hi @Matthew_Graham,
After reviewing this proposal with the 1kx team, we feel it appropriate to split the proposal into two votes given the distinct risk profiles of the two strategies. It makes sense to utilize Rari Capital given the longevity and success of the protocol and its overall lower risk profile being a fork of Compound.
With regard to Beta Finance, it is a relatively untested protocol that is still in the bootstrapping phase with a primary focus on enabling short-selling of tokens. It’s TVL currently stands at $86mm. This is a different style of investment strategy relative to the other approved Operations Account strategies and doesn’t seem to match the risk profile of the lower risk treasury bucket. Per the Stablecoin Asset Management Guidelines:
Sustainability of the Opportunity - Yield strategies can be fleeting in DeFi. Rather than chasing yields, a bias toward strategies that are economically sustainable with established protocols will be maintained.
Given the lower borrow demand for our products as noted in the now halted IIP-95, this does not seem like a sustainable yield strategy once short-term BETA incentives end.
Also, we discussed potential gas costs as a concern given the amount of transactions that are expected to come out of the Operations Account as it expands. It might be helpful to come up with an analysis of potential gas costs given expected transaction volume and factor that into decisions about how much is allocated across different yield strategies.