FIP - 91 PCV ETH Deployments

More than 60% of the PCV ETH is allocated to liquid and low yield protocols, including 15k in TimeLock that doesn’t earn anything. Assuming the Tribe DAO wants to retain an overweight allocation to ETH, one quick strategy change could be to allocate a higher percentage of those assets to more illiquid protocols.

In the future, the Tribe DAO should evaluate staked ETH positions across the various options to optimize yield generation, security, liquidity and partnership potential. After these initial deployments in RocketPool and StakeWise, if all goes well and outside liquidity grows, moving some of the 49k stETH with Lido to higher yields and partnership opportunities should be considered.

Specification

  1. Move 5000 ETH from Timelock into Rocket Pool, earning 4.3% yield
  2. Move 5000 ETH from TimeLock into StakeWise, earning 4.6% yield [StakeWise is offering additional incentives to the Tribe DAO]
  3. Move 1,666 stETH and 5,000 ETH from Timelock into the wstETH/rETH (RocketPool) Curve Pool, which would earn around 7-10% APR including CRV and CVX incentives. stETH yield accumulates within the wstETH token. This would conserve ETH position, provide better liquidity than Lido protocol, while earning a higher return.
  4. Move 5,000 stETH and 5,000 ETH from Aave into the wstETH/sETH2 (StakeWise) Curve Pool, which would earn around 7-10% APR, including CRV and CVX incentives. The pool is not yet opened, but it will offer high incentives and the same risks as RocketPool Curve pool

Look forward to hearing feedback from the community.

9 Likes

I completely agree that a fair amount of the PCV ETH is “too passive” at the moment and I would surely love to see this ETH allocated to higher yield earning opportunities. There are inherent risks for all four of these strategies mentioned and I would like the community to fully comprehend the complexities and nuances of each one. What types of risk analysis have been done? Has there been any historical tracing that models how PCV would have sustained to this date with these projections?

I would also recommend that the DAO looks into icETH, interest compounding ETH that will be launching fairly soon: icETH | Interest Compounding ETH Index | Index Coop

this looks good we should allocate some eth to galleon dao as well

2 Likes

Many thanks for posting @Brianna ! It’s great to see the Tribe looking to diversify its staking given it already has significant exposure to Lido.

I’m part of the core StakeWise team, happy to answer any questions people might have regarding our platform. I recently posted a proposal to the Tribe which gives an overview of our project and general risk assessment: here

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We are very appreciative of this proposal, it would be a fantastic boost to our new pool, whilst also earning the DAO a great additional yield on its staked assets.

One thing to highlight - our new curve pool will be stETH / sETH2, where both assets are pegged 1-to-1 with ETH. I believe the assets should be deposited 50/50 in order for the correct exchange rate to be set. Would the DAO have interest in matching the 5k sETH2 proposed by Brianna for this pool with 5k stETH that is already held within the PCV?

1 Like

Thank you for pointing this out. I edited my original post to reflect the 50/50 pool.

2 Likes

We’re happy to facilitate this, our uni v3 pool has deep liquidity and alternatively Galleon will happily cover any large minting costs as well.

It’s worth noting that despite the increased borrow rates on Aave, which has dropped $ETHMAXY to 9%+ APY we also have liquidity incentives (14% APY) on top giving this product 23%+ APY - highest in the market!

2 Likes

Moving to last call.

I do agree that utilizing PCV is an important part of Tribes growth strategy.

However, I believe its important to put forth security as the most important factor when strategizing for new opportunities. Lido (stETH) and Rocket Pool (rETH) have both have stand the test of time.

I believe Ribbon ETH should be considered as well, as they are about to enable ribbon ETH pools on FUSE that should result in a pretty intriguing opportunity.

Looks like we still have 80m of LUSD sitting on B Protocol on a deprecated pool. We should propose moving this over to YFI which would create about $9,000,000 in extra income for the PCV over the next year.

What do you mean by deprecated? Also, the Yearn strategy uses the stability pool, so the only change would be going from B. Protocol to the normal stability pool (which I support). It would be superior for us to interact directly with the stability pool so that we don’t include Yearn’s smart contract risk.

Minor edit to the Specification:

  1. Move 5000 ETH from Timelock into Rocket Pool, earning 4.3% yield
  2. Move 7500 ETH from TimeLock into StakeWise, earning 4.6% yield [StakeWise is offering additional incentives to the Tribe DAO]
  3. Move 5000 stETH into the wstETH/rETH (RocketPool) Curve Pool, which would earn around 7-10% APR including CRV and CVX incentives. stETH yield accumulates within the wstETH token. This would conserve ETH position, provide better liquidity than Lido protocol, while earning a higher return.
  4. Move 2500 stETH from step 2 and 2500 ETH from timelock into the wstETH/sETH2 (StakeWise) Curve Pool, which would earn around 7-10% APR, including CRV and CVX incentives. The pool is not yet opened, but it will offer high incentives and the same risks as RocketPool Curve pool
3 Likes

Snapshot is live

https://snapshot.org/#/fei.eth/proposal/0xa4115f24e824b09109991e1e369ba48c60921f503fe3efa4b39d4612eeb51533

1 Like

For more ETH Deployment in the future, what do you guys think about having PCV exposure to the GLP Index on GMX.IO Protocol (Arbitrum).
GLP Index Composition consists of 50% stablecoins and 50% volatile assets(mostly ETH + BTC). Its yield is over 40% with 20% pay in ETH.
Link: GMX

This is wrong. rETH liquidity is mostly against wstETH and relies on Lido-incentivized stETH-ETH liquidity (and even that is quite small compared to stETH liquidity).