Hi all – Tom from Dragonfly here. Excited about the new treasury diversification proposal and the opportunity to deepen our relationship with Lido. I wanted to clarify a few points about the last proposal and clear the air a bit, as things have gotten a bit crazy.
First, to clarify: Dragonfly has two separate divisions, Venture (which Haseeb and I mostly work on) and Liquid (which Ashwin, who was commenting on the forum post for the last proposal, mostly works on). The funds managed by each division have separate investment strategies. Our Venture funds have long, multi-year fund lifes, and venture investments generally have lockups and vesting. The Liquid team has similar technical backgrounds and a similar ethos to the Venture team – investing in generational projects in crypto – with the exception that they almost always invest in publicly-traded assets due to the liquidity constraints of their fund.
With LDO being a publicly traded token, this deal was allocated to our Liquid team, as it’s more aligned with the type of opportunities they naturally take on. The Liquid team had already developed an investment thesis on LDO and had been buying LDO on the open market, and this seemed like a great opportunity to both accumulate more and build a stronger partnership with the Lido team at the same time. After conversation with the Lido team, at their suggestion, the Liquid team used their existing LDO to vote on the proposal out of the address 0x641c. (While obvious in retrospect, at the time, the perception among us and the Lido team was - well, you guys bought these tokens on the open market, you’re not so big as to dictate the entire vote, so of course you get to vote with them—they’re governance tokens after all, and owning tokens means you get to be a voice within the DAO. Lesson learned .)
Before the vote launched, Dragonfly Liquid and the Lido team were under the impression that the proposal would have strong community support given that Liquid was buying the LDO at a significant premium to a spot TWAP. But because the entire market ran up between the proposal and the vote, the TWAP + premium now became a discount to the spot price. When feedback started to pour in and it became obvious that the community also wanted a lockup before the deal would go through, the Liquid team switched their vote with the assumption being that a lockup is what the community wanted, so Dragonfly Ventures could step in to take the deal, given our ability to handle lockups.
Not surprisingly, confusion ensued, made worse by the fact that this was happening over the weekend and syncing up communication across multiple time zones and multiple teams on non-working hours is tricky. (Plus we’re highly regulated, so we have to be careful what we say in public). We had no malicious intentions, we just wanted to buy some LDO, fr fr.
Anyway, all of that aside, we’re excited about the new proposal. We’ve heard you loud and clear that you want to see a lockup, and we’re happy to furthermore add a premium to the spot price to make everyone happy. If you have questions, open to respond to any feedback you may have!
(Disclosures can be found here)