Summary

Refresh Treasury Working Group allowances to continue duties as outlined in Proposal 10 of MILLS Era in addition to recent strategic developments surrounding Curve Wars and bad debt repayments in relation to the bad debt accrued from the April 2nd price manipulation incident.

Background

Allowances

The majority of the DOLA and LP/SLP allowances impact has been attributed to various pool balancing exercises between DOLA-2POOL, INV-DOLA, INV-WETH and DOLA-3POOL.

Recent INV spend has shifted from DAO directed emissions to Curve wars related spend, via bribes (private or via bribing protocols) which has and will continue impacting available INV allowances.

INV Spend

Result of INV spend:

• Bribing - This has allows the Yearn Fed (see Proposal 21) to operate profitably, and has ensured very deep DOLA-3Pool liquidity with between $70m and $80m depth for many weeks now. This ensure a highly resilient DOLA peg.
• OTC - This has allowed the DAO to collect signifiacnt additonal funds, which to date have been used for deepening the INV/WETH LP on SushiSwap as well as reimbursing contributors gas costs for DAO activities.
• INV/WETH - Additional INV has been used to pair with WETH when adding liquidity to this pool, the current value on the DAO's position in this pool is $760k (made up of 3634 INV and 188 WETH).

To keep up to date with the TWG and TWG Spending, come view the Treasury Announcements Channel in the Inverse Finance discord.

Projected 90 Day Allowance Need

Please review Proposal 10 for more detailed explanations as to each allowance request.

DOLA

• We request $1.5m for rebalancing liquidity.
• We request $15k for ad-hoc comp of TWG member n3bs (paid monthly based on hours contributed to the DAO)
• We request $600 for design work on the monthly treasury report.

DOLA-3Pool

• We request $1.5m for rebalancing liquidity

DAI

• We request $150k for rebalancing liquidity and debt repayments ($75k was requested last time, which has been mostly used in the 6 weeks that followed)

INV-DOLA SLP

• We request $1.5m (72,000 tokens) for rebalancing liquidity, this is more than the $1m requested last time as it proved to not be enough and negatively impacted our balancing activities during April.

INV-WETH SLP

• We request $1.5m (1,050 tokens) for rebalancing liquidity, the amount replicates the allowance for INV-DOLA SLP

INV

• We request 6,000 INV for incentivising liquidity through bribes (~2000 INV per month freed up by stopping other Anchor rewards, so this INV spend is a reallocation)
• We request $250k (2500 INV) to facilitate OTC transactions
• We request $500k for liquidity rebalancing (deepening INV liquidity on DEX’s)
• We request 400 INV to fulfil responsibilities of reimbursing contributors gas cost for DAO activities.

Debt repayment

We are currently buying ETH/WBTC/YFI as part of bad debt repayment weekly through DCA. This is currently projected to be at a rate of $75k per week. To cover debt repayment until the end of June, the TWG requests $225k DOLA and $225k DOLA-3Pool (6 weeks * $75k = $450k)

*$40k added for gas reimbursements

Allowances for Bad Debt Repayment

Throughout the process of paying down the bad debt accrued on April 2nd, returning capital to the affected users the impacted assets (ETH/WBTC/YFI) are likely to be stored in the Treasury for periods between debt repayments. We request allowances to cover the full value of the bad debt so the TWG can pull each asset out to make a repayment whenever appropriate. 100% of the ETH/WBTC/YFI stored in the treasury will be used for this purpose only.

Miscellaneous

3920 USDC ($3920), 596.3 yvDAI (655$) and 512.89 yvUSDC (562$) have been stored in the Treasury for considerable time, dormant and unproductive. The USDC is direct profit from the depreciated USDC DCA vault, and the Yearn vault tokens are from Yearn profit sharing for the DCA vaults. The TWG recommends allowances are given for these assets so they can be withdrawn from the treasury and used productively for one (or many) of the following activities: bad debt repayment, deepening INV liquidity, purchasing ETH to reimburse DAO gas fees.

~$500 budget requested by RWG to pay annual membership subscription for Asana, the software they use for managing goals and objectives.

On Chain Actions

• Approve allowance of 1,740,600 DOLA ($1.74m) to the TWG Multisig
• Approve allowance of 1,725,000 DOLA-3Pool ($1.73m) to the TWG Multisig
• Approve allowance of 72,000 INV-DOLA SLP ($1.5m) to the TWG Multisig
• Approve allowance of 1,050 INV-WETH SLP ($1.5m) to the TWG Multisig
• Approve allowance of 14,000 INV ($1.4m) to the TWG Multisig
• Approve allowance of 1,600 WETH to the TWG Multisig
• Approve allowance of 94.95 WBTC to the TWG Multisig
• Approve allowance of 38.93 YFI to the TWG Multisig
• Approve allowance of 596.30208258241729 ($655) yvDAI to the TWG Multisig
• Approve allowance of 512.89214 yvUSDC ($562) to the TWG Multisig
• Approve allowance of 3,920.386605 USDC to TWG Multisig