TMC-0: Stake all treasury ETH in Lido

Proposals
1
TMC-0: Stake all treasury ETH in Lido
Strategy Build a core treasury in productive assets that can safeguard against risks and help offset operating expenses for protocol development
Objective 4-6% annual yield on 20k ETH or almost $2m a year at current prices, one more month of runway
Intended on-chain action 1. Deposit 20,304.357 ETH in Lido for stETH
2. Deploy an EasyTrack contract to sweep Treasury ETH and deposit it in Lido
Impact on treasury liquidity Although still highly liquid in comparison to many ERC-20 tokens (>330,000 ETH/stETH in Curve), objectively less liquid than pure ETH
Execution complexity - Minimal, requires a Lido.sol contract call from the Aragon treasury contract
- EasyTrack deployment of a contract to execute ETH sweeps for the future
Maintenance complexity and overhead Minimal, stETH rebases automatically and accrues over time
Summary of possible risks - Lido protocol-specific smart contract risks could compromise the value of the underlying ETH
- Price volatility in relation to operating expenses could compromise the ability to continue to pay for development
Summary of potential benefits - Dogfooding Lido’s own ETH
- Contribute to securing the Ethereum network in a decentralized liquid staking protocol
Compliance with Treasury Management Principles Yes
Proposer Steakhouse
Agreement Approved
Perform Steakhouse
Input Received
On-chain execution stage Executed
Other notes If stETH<0.98 ETH, we should buy stETH in the market instead of staking ETH directly, which may require more operational overhead

Poll for Treasury Management Committee Members

End date 03-Jun-2023

TMC-0: Stake all treasury ETH in Lido
  • Approve
  • Reject
0 voters
13 Likes
2

Totally support the move! Would note that the ET motion factory for staking ETH is a separate development (read: won’t be readily available). I’d say the “default” implementation path would be in staking in one Aragon vote.

7 Likes
3

In favour! Great option to generate some yield with Lido’s treasury without incurring unnecessary risks.

5 Likes
4

Glad to see we’re finally proposing this!

5 Likes
5

I’d hope that you’d exclude the illicit funds in Lidos treasury from this vote.

If not, you might want to update the possible risks. It doesn’t seem wise to be playing with clearly attributable stolen user funds which ended up in the Lido treasury.

6

Happy this finally went to vote. Supportive of this.

Would like to see us pushing to maximize utility of all assets.

Good job team

2 Likes
7

Glad to see this. Easy, clear upside. Hope passes

2 Likes
8

We fully support this strategy, mainly for the following reasons:

  • Out of the strategies proposed in the past, it’s the obvious first choice: good risk-adjusted yield, especially after having withdrawals enabled and enough liquidity in the market should we decide to skip the withdrawal queue (Curve: >300.000 ETH / Balancer: >30,000 ETH);
  • Having Lido DAO depositing the entire ETH treasury holdings in its own protocol is a testament to the confidence in the technology and Node Operator set; and
  • It requires a relatively simple EasyTrack deployment, which feels appropriate to test TMC’s processes.
9 Likes
9

Fully in support of this! Really enjoy seeing Lido leveraging its treasury to its fullest potential.

10

Kinda late to the conversation haha

Is one more month of runway worth it?

If Dai has issues(which it has) at the same time stETH has issues it might be good to have a 3rd option to pay the bills.

3 Likes
11

For the next proposal we will introduce a framework for estimating on-hand availability of USD-tracking expenditures and proposals to continuously execute conversion from stETH to USD stables.

This proposal merely asks the TMC to propose any ETH on Aragon be staked.

3 Likes
12

TMC 0 is up for voting on lido.vote.fi under #161. Thanks to those that help to post it.

1 Like
13

It’s funny. Because At DevCon 22, I tried to explain how to use insurance for stEth bootstrapping and stEth mass adoption.
stEth/Eth parametric LSD depeg insurance can also be the additional revenue stream for LIDO DAO.
But no one was willing to listen during the bull run)
It’s always a bad idea to rely on only one revenue stream.

Please text me if you still interested [email protected]

14

On-chain vote intended to staking 20304.356786192398999068 ETH to Lido passed and was executed on the 30th of June

6 Likes