# TMC-2: Research and implement permissionless Stonks execution
**URL:** https://research.lido.fi/t/tmc-2-research-and-implement-permissionless-stonks-execution/6861
**Category:** Proposals
**Created:** [March 14, 2024, 2:38pm UTC](https://research.lido.fi/t/tmc-2-research-and-implement-permissionless-stonks-execution/6861 "2024-03-14T14:38:50Z")
**Posts on this page:** 15
**Page:** 1
### Author:  [@steakhouse](https://research.lido.fi/u/steakhouse)
#### Post date: [March 14, 2024, 2:38pm UTC](https://research.lido.fi/t/tmc-2-research-and-implement-permissionless-stonks-execution/6861/1 "2024-03-14T14:38:50Z")
| TMC-2: Research and implement permissionless Stonks execution | |
| --- | --- |
| | |
| **Strategy** | Research and develop a permissionless [Stonks](https://research.lido.fi/t/lido-stonks-treasury-swaps-via-optimistic-governance/6860) trigger |
| **Objective** | Accelerate a transition of TMC ownership over a key financial operations tool to the community |
| **Intended on-chain action** | 1. Research and develop the most secure mechanisms that will allow LDO token holders to select a threshold and trigger Stonks permissionlessly;
2. Develop on-chain tooling with a grief-proof mechanism |
| **Impact on treasury liquidity** | No relative change to treasury liquidity |
| **Execution complexity** | The Stonks tool allows non-custodial treasury swaps already, and represents the overwhelming majority of the execution complexity. A permissionless trigger is comparatively much simpler |
| **Maintenance complexity and overhead** | Minor, may require maintenance and updates of the limits from time to time |
| | |
| **Summary of possible risks** | - Tail event execution modes may trigger more or less swaps than desired
→ we recommend DAO contributors to actively research and publish pros and cons of various modes of permissionless triggers for community feedback ahead of execution |
| **Summary of potential benefits** | - Ability to hand over ownership of a key financial operations tool to the community
- Fulfill the mandate of the Treasury Management Committee to automate itself |
| | |
| **Compliance with Treasury Management Principles** | Yes |
| | |
| **Proposer** | Steakhouse |
| **Agreement** | Pending from TMC poll |
| **Perform** | Steakhouse |
| **Input** | Pending from community |
| **On-chain execution stage** | Proposal |
| | |
| **Other notes** | - [Query to see the months of runway based on stablecoins only](https://dune.com/embeds/2690096/4474763)
- [Query to see the months of runway based on stablecoins and stETH in the surplus](https://dune.com/embeds/2690096/4474766) |
> [@Lido Stonks: Treasury Swaps via Optimistic Governance](https://research.lido.fi/t/lido-stonks-treasury-swaps-via-optimistic-governance/6860/2):
>
> The modular approach of this design makes it possible to iterate very quickly on a next step of this function. Today, the TMC will be in charge of the trigger and selecting thresholds, but there is no reason why this level-setting and execution couldn’t be done permissionlessly also. One way in which this could be done is by allowing an Aragon vote to set a maximum ceiling of swaps permitted in a rolling 12mo period (~2.6m blocks):
>
> 
## Poll for Treasury Management Committee Members
End date 21-Mar-2024
_Poll ([view on site](https://research.lido.fi/t/tmc-2-research-and-implement-permissionless-stonks-execution/6861/1))_
---
### Author:  [@Izzy](https://research.lido.fi/u/Izzy)
#### Post date: [March 15, 2024, 9:56am UTC](https://research.lido.fi/t/tmc-2-research-and-implement-permissionless-stonks-execution/6861/2 "2024-03-15T09:56:11Z")
Why are permissionless swaps good? e.g. what if it’s a bad time to make the swap or unnecessary to (there’s enough of the quote currency for any possible use)?
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### Author:  [@steakhouse](https://research.lido.fi/u/steakhouse)
#### Post date: [March 15, 2024, 10:16am UTC](https://research.lido.fi/t/tmc-2-research-and-implement-permissionless-stonks-execution/6861/3 "2024-03-15T10:16:44Z")
Any reduction in trusted assumptions is a net improvement - as to whether it is a bad time or not, is up to the prerogative of the token holders and the parameters they set to allow it.
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### Author:  [@Izzy](https://research.lido.fi/u/Izzy)
#### Post date: [March 15, 2024, 10:20am UTC](https://research.lido.fi/t/tmc-2-research-and-implement-permissionless-stonks-execution/6861/4 "2024-03-15T10:20:00Z")
> [@steakhouse](#):
>
> Any reduction in trusted assumptions is a net improvement
Well, not if there aren’t sufficient safeguards to prevent someone form doing something that’s unwanted (or if those safeguards don’t end up creating more trust assumptions, or are more complex, etc). If the DAO has to set like an “allow trade window” every time it wants allow anyone to permissionlessly make a trade how is this materially different from just the DAO making the trade?
---
### Author:  [@kadmil](https://research.lido.fi/u/kadmil)
#### Post date: [March 15, 2024, 10:22am UTC](https://research.lido.fi/t/tmc-2-research-and-implement-permissionless-stonks-execution/6861/5 "2024-03-15T10:22:45Z")
Stonks at the first iteration are under TMC purview (and not permissionless by current design); happened to be so exactly for the reasons you’re outlining. DAO Ops team targets to enable TMC to rebalance tokens proportions in the DAO Treasury, but not allowing for any “significant” (up to some technical gap) difference between the “market” (in this case, Chainlink’s) and “execution” prices. A lot of detail is covered in the Stonks design post. If anything, it turned out to be more permissioned than I initially envisioned due to multiple ops safety considerations brought up in the review & audit processes
---
### Author:  [@steakhouse](https://research.lido.fi/u/steakhouse)
#### Post date: [March 15, 2024, 10:24am UTC](https://research.lido.fi/t/tmc-2-research-and-implement-permissionless-stonks-execution/6861/6 "2024-03-15T10:24:25Z")
These are all really good questions and conditions that need to be properly researched. This TMC motion signals the desire to do in-depth research and design to make sure a permissionless module can be executed safely.
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### Author:  [@Izzy](https://research.lido.fi/u/Izzy)
#### Post date: [March 15, 2024, 10:26am UTC](https://research.lido.fi/t/tmc-2-research-and-implement-permissionless-stonks-execution/6861/7 "2024-03-15T10:26:17Z")
> [@kadmil](#):
>
> but not allowing for any “significant” (up to some technical gap) difference between the “market” (in this case, Chainlink’s) and “execution” prices
Things like price impact / slippage safety aren’t really what I’m getting at here, but more about “timing and necessity of execution” (which you can’t control if it’s fully permissionless). You can control the “context” around which permissionless execution can happen, sure, what I’m trying to understand is what are the considerations here and how do we anticipate to end up with something that’s actually simpler vs more complex (there’s a lot of parameters to account for).
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### Author:  [@kadmil](https://research.lido.fi/u/kadmil)
#### Post date: [March 15, 2024, 10:51am UTC](https://research.lido.fi/t/tmc-2-research-and-implement-permissionless-stonks-execution/6861/8 "2024-03-15T10:51:19Z")
I read Steakhouse’s comment as “now we seem to have an engine, next step would be to 1) research usage; 2) discuss results and plans”; that’s not specific execution plan as-is. Would say as a part of TMC I’d call for more exact plan being researched and published before doing any swaps higher that “test amounts” (~ tens of StETH worth ones)
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### Author:  [@Izzy](https://research.lido.fi/u/Izzy)
#### Post date: [March 15, 2024, 11:21am UTC](https://research.lido.fi/t/tmc-2-research-and-implement-permissionless-stonks-execution/6861/9 "2024-03-15T11:21:55Z")
Thanks, that’s clearer; “Research and implement” definitely gave the the feeling that this is something with a near horizon rather than far, and that implementation approval was tied to this proposal (i.e. whatever designs came out are what would be implemented).
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### Author:  [@steakhouse](https://research.lido.fi/u/steakhouse)
#### Post date: [March 15, 2024, 11:25am UTC](https://research.lido.fi/t/tmc-2-research-and-implement-permissionless-stonks-execution/6861/10 "2024-03-15T11:25:33Z")
Yes correct! Thank you @kadmil for helping clarifying
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### Author:  [@marcbcs](https://research.lido.fi/u/marcbcs)
#### Post date: [March 15, 2024, 12:25pm UTC](https://research.lido.fi/t/tmc-2-research-and-implement-permissionless-stonks-execution/6861/11 "2024-03-15T12:25:52Z")
Thanks for the clarifying questions @Izzy, I had similar thoughts.
@steakhouse can you clarify:
1. what is the TMC agreeing to (see image below) exactly with this vote?
2. how will the LDO community provide input? Responding to this (TMC-2) post?
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### Author:  [@steakhouse](https://research.lido.fi/u/steakhouse)
#### Post date: [March 15, 2024, 12:50pm UTC](https://research.lido.fi/t/tmc-2-research-and-implement-permissionless-stonks-execution/6861/12 "2024-03-15T12:50:29Z")
> [@marcbcs](#):
>
> 1. what is the TMC agreeing to (see image below) exactly with this vote?
> 2. how will the LDO community provide input? Responding to this (TMC-2) post?
[TMC-1](https://research.lido.fi/t/tmc-1-pipeline-to-sell-steth-at-regular-intervals-for-dai/5059), was more prescriptive about the ‘how’ because it was a bit clearer.
TMC-2 is about signaling a desire to work on researching methods for achieving the objective.
Plainly, the objective is to improve the trustlessness of the Stonks process and remove the multisig from the equation. This would be in line with As @kadmil suggests, the next steps in our view are to:
1. research usage
2. discuss results and plans
TMC-2 is likely some time away from being anywhere near on-chain implementation stage. There is also a chance this level of trustlessness may well not be worth its corresponding tradeoffs. The interim period is a ripe opportunity for soliciting LDO token holder feedback, with continuous engagement around design proposals and research outcomes instigated by a positive signal from TMC-2.
We look forward to feedback from the community here and on any other ideas, designs or proposals that emerge as a result.
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### Author:  [@marcbcs](https://research.lido.fi/u/marcbcs)
#### Post date: [March 15, 2024, 12:53pm UTC](https://research.lido.fi/t/tmc-2-research-and-implement-permissionless-stonks-execution/6861/13 "2024-03-15T12:53:35Z")
Thanks for clarifying @steakhouse, I’m supportive of this proposal
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### Author:  [@Alex\_L](https://research.lido.fi/u/Alex_L)
#### Post date: [July 16, 2024, 3:40pm UTC](https://research.lido.fi/t/tmc-2-research-and-implement-permissionless-stonks-execution/6861/14 "2024-07-16T15:40:13Z")
Hey hey, Easy Track motions [#675](https://easytrack.lido.fi/motions/675) and [#676](https://easytrack.lido.fi/motions/676) are live!
These stETH will be swapped into DAI, USDC and USDT as a part of the first treasury diversification using [STONKS factories](https://docs.lido.fi/deployed-contracts/#lido-stonks-contracts).
Next updates will be provided in the current thread, stay tuned!
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### Author:  [@ujenjt](https://research.lido.fi/u/ujenjt)
#### Post date: [July 18, 2024, 9:53pm UTC](https://research.lido.fi/t/tmc-2-research-and-implement-permissionless-stonks-execution/6861/15 "2024-07-18T21:53:43Z")
Hooorayyyy 💥 💫
Fully autonomous stonks!