Stake DAO

Forum post: https://gov.stakedao.org/t/sdip-13-d2d-swap-stake-dao-x-apwine/592

Summary: Expand the partnership between APWine DAO and Stake DAO by performing a 500K$ treasury swap of SDT for APW which will be used to increase the synergies between both protocols

Context: Apwine is a yield tokenizing protocol allowing users to long or short their yield, which can create arbitrage opportunities. The protocol works with two tokens : PT (Principal token) and FYT (Future Yield Token). The PT represents the underlying token locked for a 90 days period and the FYT represents the yield on the period, which can be sold in advance.

The governance token of the protocol is APW, which works with a ve-model,and is used to incentivize the liquidity pools and to vote on the governance proposals. In the coming weeks, the DAO will vote to enable gauges for APW rewards.

Several Stake DAO pools have already been added to the winelisting events, and voted to be eligible to APW rewards:

• Winelisting 1 - Mainnet: xSDT Snapshot vote: https://snapshot.org/#/apwine.eth/proposal/0x5ab0a6df91ab2921437b0c3ec842ea199e884059a328f69203c6ad8b6eb36181
• Winelisting 2 - Mainnet: sdFRAX3CRV-f Snapshot vote: https://snapshot.org/#/apwine.eth/proposal/0x4b919c1b2789c124f6182935d0059842a529b47c11a4dcf259e521792b14c9e3
• Winelisting 2 - Polygon: sdam3CRV Snapshot vote: https://snapshot.org/#/apwine.eth/proposal/0xe34746688787d0b88441c4b5aa619037098a070ace41f30907ac5a1f77737c68

By expanding the partnership between both DAOs with a treasury swap, we can make sure that each project will be able to participate actively in the other’s governance.

Rationale: This proposal will have 3 different topics:

Token swap: We’d like to propose a token swap of 500K$ worth between both DAOs. The proposed token swap conditions are:

• Split the swap with 50K$ tranches during 10 weeks
• The swap price will be determined with a 3 Day TWAP before each swap
• Both DAOs should lock at least the 1st tranche, and can wait the liquid lockers for the next ones
• The tokens received will be used for gauge voting ang governance purposes

APW Liquid locker and strategy creation: Stake DAO propose to create a liquid locker for APWine, so users could lock their APW on a liquid locker and receive sdAPW, enjoying all the voting rights of the veAPW, the Liquid locker yield, while keeping a liquid position.

Apwine DAO will be able to lock their SDT to vote on sdAPW Liquid locker and sdAPW/APW strategy gauges to receive SDT rewards.

Stake DAO treasury allocation: Considering that $APW rewards will now be allocated with gauges, another good option could be to increase SD $APW holdings by allocating part of the Stake DAO treasury on APWine pools, starting with FRAX3CRV-f and sdam3CRV PT/Underlying pools.

The treasury currently holds around 2M$ in stablecoins including 300K$ in FRAX3CRV and 100K$ in 3CRV. I suggest allocating 15% of the total stablecoins (200K$ to the PT/FRAX3CRV pool and 100K$ to the PT/sdam3CRV pool).

Stake DAO will then be able to vote on FRAX3CRV and sdam3CRV gauges to boost the rewards for the treasury.

Benefits for Stake DAO: Create a long term position on APW Ability to vote on APW gauges with veAPW/sdAPW Increase the governance participation and DAO revenues by farming APW rewards sdTokens can be integrated as IBTs on APWine once live Increase the visibility of both projects with cross marketing

Benefits for APWine DAO: Create a long term position on SDT Creation of a Liquid Locker and a sdAPW/APW strategy both eligible for gauges rewards by locking SDT and voting with veSDT Once live, APW holders will be able to boost their voting power on sdAPW with their veSDT Once live, new IBTs that can be integrated on the protocol (sdTokens) Increase the visibility of both projects with cross marketing Increase of the TVL and revenues with Stake DAO treasury deposits (if accepted by the SD vote)

Means: Swap the tokens every week over 2.5 months

Technical implementation:

• The swap price will be determined with a 3 Day TWAP before each swap
• Create a liquid locker and a strategy for the veAPW

Voting options: Yes, token swap + the liquid locker (LL) & strategy + Treasury allocation Yes, token swap + the liquid locker (LL) & strategy Yes, token swap only No, against the token swap Abstain