The sCoop - Contributor Newsletter - 2022.03.10 Thursday

Fresh Owlpha, curated daily. This is @HOWweDAO . (previous issue)

Today, two Nests held their nesting calls: Governance and Growth. GovNest gave an update on active projects and some insight from @anthonyb.eth on alternative governance (meetings on Mondays). Growth Nest spotlighted BD Pod with a deep dive into DAO treasuries.

Tomorrow, @JosephKnecht is off the day with a DAO treasuries / New product Ideation Session and a reminder that at this early stage, there are no bad ideas. @TheYoungCrews hosts DeFridays with the Coop, this time with @LiquidityWizard from Token Reactor (on Twitter Spaces). As per, a POAP is available for all attendees. Remember, collect all 12 DeFriday POAPS and you’ll be rewarded.

Announcements:

  • VOTING LIVE :
    • Check your email for vote on Index Council v2 (from Choice Voting)

Meta-Governance:

  • YIP-67: Contribute $400,000 to Nomic Foundation

Champions of Notion

Governance Nest (10 attendees) slides

GovNest is prioritizing increasing voter participation OKR (currently 11% on IIPs and 1% on MetaGov). The first monthly report has been posted, and following reports will be posted in a thread linking to Medium. With @JosephKnecht, they’re investigating a governance model for JPG.

Gov Coms

@shawn16400 is on top of Notion! Project Schedule is here. Upcoming content is a post on FEI and Index in March (@shawn16400), a MetaGov video (also in March?) (@mel.eth), and MGC video in April (@Lavi). Also expect a long-form post in governance and decision-making in May.

The community should be aware of the delegation explainer by @sixtykeys and the AAR (help is needed!).

Gov Ops

Index Council Contributor Vote has been emailed to all contributors on ChoiceVote and will be open until Tuesday, the 15th, at 21:00 UTC. The GovReps program has kicked off, and Ops is working on a framework for community interaction with GovReps. MetaGov Rep training will take place next Wednesday. They are working on adding historic data points to the MetaGov tracker.

IIPs going live next week include: IIP-135: DG - Launch the Alt Layer 1 index token (LAYER1) and IIP-136: DG - Launch the FIXED Suite.

Gov Desk

In the works is the Maker meta-governance integration. They are still gathering adepts for Protocol Ambassador program. Please add your bio to the link if you think you have good connections in web3 and MetaGov. They’ll select 3 ambassadors to start, and if all goes well, will increase numbers.

Alternative Governance

@anthonyb.eth led our first call on alternative governance on Monday. We’re looking for a solution we can implement quickly and with not a lot of overhead, and they are hoping to post this next week. One idea is a light reputation system based on owl levels (NFT owl levels incorporated with Snapshot, perhaps). We’re also looking at a tool in Notion for contributors to suggest things to delegate to the Council (you can upvote/downvote on those suggestions). @JosephKnecht worked on a Decision Responsibility Chart, which we can use to decide who makes what decision, and he is creating a complimentary sentiment check mechanism to be used before it is decided if we require official voting on a topic (both sentiment checks and official votes will be on Snapshot). Dive into the new #alternative-governance channel in the Contributor Server to chat more. They plan to work mostly async then use Monday calls to prioritize projects. The ultimate goal is by the end of May to create. a framework of who decides what, when, and how for the Coop’s decisions.

“This could be our greatest opportunity to significantly increase AUM.”

Growth Nest (26 attendees) slides

Growth Nest spotlighted Business Development Pod with a presentation by @Mringz and @funkmasterflex. They ran through a strategy overview, key metrics, and a deep dive into DAO treasuries, which they say could be our “greatest opportunity to significantly increase AUM.”

On Growth’s AAARRR conversion funnel, BD is focused on driving 3 consumer behaviors: Activation (through webinars and public brand communications), Revenue (through increasing listings on DeFi protocols), and Retention. Their primary objective is to grow awareness and increase accessibility for IC products by listing those products on Defi Protocols, wallet providers, L2 scaling solutions, and L1 side chains, while also increasing the TVL of our products held in DAO treasuries.

Key metrics include:

  • Number of wallet integrations: 3 (measured monthly)
  • TVL within of defi integrations: $10m (measured monthly)
  • TVL of IC products in DAO: $10m in sales (measured quarterly)

DAO Treasury Deep Dive

Most treasuries are not diversified and have large concentrations of their native token. Undiversified treasuries hold great risk. This provides us with great opportunity. Treasury management is all about our products. Teams like our products, because they are diversified, and importantly, they like multiple of our products. DAOs can buy through private sale, overcollateralized borrowing, and bonding curve.

DAO treasuries have four major needs, each of which comes with obstacles (detailed on the slides):

  1. Diversification (away from their native token)
  2. Funding ongoing operations
  3. Managing liquidity for their own products
  4. Growing their treasury

What features of products do DAOs look for when purchasing?

  • Passive
  • Low-risk (stablecoins and ETH)
  • Build with decentralized services and components
  • Multiple yield

From research, we know that DAOs want custom strategies. They know what they want, they know what they want to do with these positions, and they know what percentages they want to allocate to each position. With custom strategies, we can bake in several of our products, namely thematic indices like DPI instead of just PAY and FIXED. This may be done through Balancer Pools, one-time passive management pools that we manage (no trading) or more actively move into positions. This may require a 3rd party manager. We can earn revenues only on live trading pools. Besides Balancer Pools, there are other options as well that the team is interested in learning about.

Simply, our goal is to automate treasury allocations of other DAOs with our products included.

So, what can Growth (and contributors across the DAO) do?

  • Tell other teams what we’ve done with our treasury
    • Lead in terms of diversification, compensation, and management
    • Leverage our treasury’s relationships, like that with Parcel
  • Always ask about treasury when talking in the ecosystem
    • Take advantage of the places DAO contributors go: Twitter Spaces, podcasts, & meetings/networking
    • Ask questions like:
      • How big is your treasury management team?
      • What do you use funds for?
      • Are there difficulties having such a high concentration of your treasury in the native token?
  • Hold community events on treasury/compensation and create a community focused on the subject
    • Build strong DAOlationships
    • Example: C.Nest recently hosted a Coordinape retro, and we need more events like that

If you’re interested in learning more about treasury management, here are some resources. Learn more about DAO treasuries tomorrow morning at the ideation session at 16:00 UTC.

Friday Meetings: (UTC/1-hr, UON)
1600 - DAO treasuries / New product Ideation Session
2100 - ‘DeFridays with the Coop’ with @LiquidityWizard from Token Reactor (on Twitter Spaces)

DAOwlpha: “Don’t follow the latest trend. Create the next one.” - @Coopahtroopa

Hoot Hoot!

2 Likes

Hey @Mringz @funkmasterflex , from my knowledge, we don’t hold any of our own products in our treasury, just INDEX and stables. Doesn’t this make approaching other DAOs more difficult when they can see that we don’t hold the same products that we are trying to get them to diversify into.

I wouldn’t recommend any of our current product offerings for a large percentage of a diversified treasury because there is such a high correlation to native tokens. Thematic indices could represent 5-10% of a treasury looking to grow strategically, but the large percentage will always be in stables/eth/btc. As we launch PAY, FIXED, and other yielding products I’d argue that would set a good example to other DAOs if we held those tokens.

Operationally, however, our treasury team is much larger and more experienced than most DAOs in the ecosystem. For a small team (1 man show or 2 treasurers) I would not recommend they actively yield farm as it would be operationally burdensome.

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