BeethovenX

Introduction:

This emergency proposal is subject to the emergency vote procedure outlined in the governance framework (BIP-29, which is summarized here: https://docs.beets.fi/dao/framework#emergency-vote-procedure).

This proposal seeks to have the Beethoven-X Fantom multisig (0xa1e849b1d6c2fd31c63eef7822e9e0632411ada7) break the DAO’s significant BPT liquidity positions in the below pools in the total amount of approximately $1,119,000, and then bridge the Multichain exposed tokens to a chain or chains where they are native. wBTC will be bridged to Mainnet.

The relevant Multichain exposed assets are DAI, USDC, fUSDT, WBTC, and WETH. The BPTs the proposal would break and bridge are [with pool contracts specified]:

1 - ‘A Late Quartet’ [0xf3A602d30dcB723A74a0198313a7551FEacA7DAc] – total pool TVL as of drafting of approximately $5,703,186

2 - ‘Steady Beets, Act II’ [0xeCAa1cBd28459d34B766F9195413Cb20122Fb942] – total pool TVL as of drafting of approximately $360,874

3 - ‘Steady Beets, Act IV’ [0xF47f4D59C863c02cBFA3EeFE6771b9C9fbe7B978] – total pool TVL as of drafting of approximately $690,419

4 - ‘Fantom of the Opera, Act II’ [0x56ad84b777ff732de69e85813daee1393a9ffe10] – total pool TVL as of drafting of approximately $810,000

NB: The ‘A Late Quartet’ BPT referenced in #1 to be broken and bridged include those held directly on Beethoven-X as well as the funds farming on Liquid Driver’s Shadow Farm.

The DAO Treasury’s current holdings on Fantom can be viewed at https://debank.com/profile/0xa1e849b1d6c2fd31c63eef7822e9e0632411ada7 NB: #3 ‘Steady Beets, Act IV’ and #4 ‘Fantom of the Opera, Act II’ are not displayed on Debank.

The POL BPT amounts in pools 1 - 4 are: 1 – A Late Quartet (USDC, FTM, BTC, ETH) – approximately $654,924 2 – Steady Beets Act II (USDC, DAI) – approximately $288,384 3 – Steady Beats, Act IV (fUSDT, DAI, USDC) – approximately $50,130 4 – Fantom of the Opera, Act II (wFTM, USDC) – approximately $126,000

Motivation:

The above listed non-native tokens on Fantom are backed by the Multichain bridge. Multiple Multichain bridges/routers have been frozen over the last week with limited communication on their plan for reinstatement and significant ongoing uncertainty about risk to other Multichain bridges.

Multichain has recently stated that they are unable to provide the necessary maintenance due to inability to contact their necessary personnel, and so they have suspended the affected bridges/routers that require maintenance. Various non-Multichain bridges, such as Stargate and Bungee, have also limited the ability to bridge the affected tokens from Fantom.

There is a risk that Multichain’s Fantom bridges will be affected by similar issues, leading to their suspension and the inability to realise the backing of bridged tokens. There is also a risk that such a suspension would be permanent or have a prolonged timeline which may impact the functioning of the Beethoven-X DAO.

Risk assessment:

The goal is to move DAO Treasury assets to a chain or chains where they are native, or in cases where native bridging is not feasible due to token bridging or asset availability, subject to more favorable backing conditions than with Multichain. This should ameliorate the above-referenced risks and help to ensure that the DAO is able to operate and provide POL now and into the future. wBTC will be bridged to Mainnet.

This proposal, if adopted, will also have the direct and potential indirect impacts on protocol and pool TVL explained in the Impacts section.

Impacts:

The purpose of this proposal is to seek to preserve treasury assets to ensure the DAO is able to continue to operate now and into the future.

If this proposal is adopted and implemented, it will directly reduce the protocol’s TVL on Fantom by approximately $1,119,000, or 4.6%. It will also reduce the TVLs for each of the 4 pools, which could increase slippage for trading the affected assets. This proposal is also likely to cause further reductions in the protocol’s Fantom TVL.

For BPT 1 (A Late Quartet), pool TVL of $5,703,186 will reduce by approximately $655,000.

For BPT 2 (Steady Beets, Act II), pool TVL of $360,874 will reduce by approximately $288,000.

For BPT 3 (Steady Beets, Act IV), pool TVL of $690,419 will reduce by approximately $50,000.

For BPT 4 (Fantom of the Opera, Act II), pool TVL of $810,073 will reduce by approximately $126,000.

Specification:

The Treasury multisig will withdraw the BPTs for pools 1 – 4 above into individual tokens and cause the 5 Multichain-affected tokens to be bridged in batches to a chain or chains where they are native, or in cases where native bridging is not feasible due to token bridging or asset availability, subject to more favorable backing conditions than with Multichain. wBTC will be bridged to Mainnet.

The transactions will be shared with the community in the onchain-data-transactions channel and the tokens will remain in the bridged chain or chains as treasury assets, which will continue to be used to fund ongoing BIP obligations and DAO operations, until there is a further governance vote approving their return to Fantom or to put them to some other use.

Execution plan:

Identical to specification.

If you would like to review the discussion that took place before this Snapshot was created, please visit the Beethoven-X discord. https://discord.com/channels/885764705526882335/1113822606542508063