Status: Proposed Author: @Finance.Nest Created: 17th November 2021 Discussion to: https://gov.indexcoop.com/t/iip-115-authorize-the-investment-account-for-aave-compound-balancer-element-finance-notional-strategies-ribbon-finance-and-mstable/3279 Quorum: 109,069 [2,181,385*0.05]

Note: This proposal has been abbreviated in order to comply with the snapshot word limit, to view the full proposal, please refer to ‘Discussion to’ above.

Abstract

The Investment Account is approved to be created. Additionally, a recent proposal seeks to modify the original signers on the Investment Account Gnosis Safe to allow for a wider pool of signers for better availability and hence, secure & efficient execution of transactions. This IIP outlines the strategies to be used within the Investment Account to make stablecoins productive. The strategies proposed here consist of collateralized lending strategies such as Aave, Compound, Element, mStable, Notional, Rari and structured yield generating strategies such as Ribbon. As more protocols are added to this list in the future, they will be included in separate proposals. To actively manage these reserves as the yields and risk profile of these protocols change relative to the overall market, this IIP will authorize the Finance Nest to deposit and withdraw freely into these strategies.

Motivation

The Investment account was designed to hold and productively deploy assets that are not needed for current or near term liquidity. It is our intention to make investments to generate sustainable returns in order to support the long-term financial viability of the Coop. The Investment Account presently does not have an authority to deploy stablecoins for productive use. To that end, the Finance Nest seeks to start deploying stablecoins held within the Investment account productively with a limited number of protocols in order to earn income for the Index Coop, to demonstrate competency, and earn trust to deploy a greater percentage of treasury assets in the future.

Specification

Overview and Rationale

The Finance Nest seeks approval from the community to utilise the following protocols to earn yield on stablecoins within the Investment Account. Do note, this is the list of protocols that the investment strategies can be selected from. Funds are to be selectively allocated across some, or all, of the protocols listed below. The rationale is detailed within each sub-section.

Aave

Compound

Balancer

Rari Capital

Element Finance

Notional

Ribbon

mStable

Technical Specification

Some protocols have apps built-in to Gnosis Safe and others are available through Wallet Connect. It is unlikely that any technical lift is going to be required.

Voting

FOR:

DO Authorize the Investment Account for Aave, Compound, Balancer, Element Finance, Notional Strategies, mStable and Ribbon Finance.

AGAINST:

DO NOT Authorize the Investment Account for Aave, Compound, Balancer, Element Finance, Notional Strategies, mStable and Ribbon Finance.

Copyright

Copyright and related rights waived via CC0.