DAO Treasury Participation in FIAT Staking Rewards

Summary

Direct $BOND held in the BarnBridge DAO treasury to participate in the proof of capital distribution of $FDT with FIAT DAO.

Description

Allocate $BOND held by the BarnBridge DAO to the jubilee staking pool and earn $FDT rewards. Subsequently, stake all rewards earned into the FIAT DAO to accumulate additional $FDT.

Motivation

If successful, FIAT DAO could be a large source of inbound liquidity for BarnBridge. Holding governance power to promote smart yield asset inclusions should be beneficial to all BOND holders.

Technical details

Treasury $BOND will be staked into the proof of capital pool to earn $FDT, the FIAT DAO governance token. At the conclusion of the jubilee event, all staked $BOND will be returned to the BarnBridge treasury. All accrued $FDT rewards earned during the jubilee event will be staked in the FIAT DAO where a 16 week emissions period of 20M $FDT begins at the start of the second epoch. Assuming no further emissions, all $FDT will be returned to the BarnBridge DAO treasury.

Timing and $BOND allocation will be critical for this proposal. I’m assuming a 11 day lead time from this post to asset deployment ( 2 day forum + 2 day snapshot + 7 day on-chain vote). This will give treasury exposure to the final two epochs or a pro rata share of 3.75M $FDT.

Currently the BarnBridge treasury is holding 2.94M $BOND and the jubilee staking contract is holding 915K $BOND. I’m advocating for 1M $BOND or approximately ⅓ of treasury $BOND to roughly double the total staked $BOND in the FDT contracts. Assuming no change in deposits, this should result in 1.875M $FDT rewards for the treasury.

Please signal your preferred $BOND allocation below:

Preferred $BOND Allocation for $FDT proof of capital
  • 0 BOND
  • 100K BOND
  • 250K BOND
  • 500K BOND
  • 1M BOND

0 voters

Useful Links

Argumentation

for

  • Governance power in FIAT DAO.
  • Power to promote SY asset inclusion.
  • Yield for idol treasury assets.

against

  • Dilution of current BOND stakers in jubilee event.
  • Significant treasury assets will be at risk.
  • BOND allocation is too high.

DAO Vote

N/A

1 Like

I think this would be a solid move to make, I’m support 1m going into the fdt smart contract. How soon will this happen?

2 Likes

Not against this - why wouldn’t we do this for ENTR and LEAG as well though? Assuming we’d nuke own all 3 pools.

5 Likes

Especially since they are all 3 the same contracts.

1 Like

I’d support this, but recommend executing this at the final week only of proof of capital. It would result in less FDT, but prevent those who provided proof of capital as BOND from losing likely half of their rewards for the last two weeks and/or exiting the PoC pool entirely.

Alternatively, you can do the last week only and provide more BOND like 1.5M BOND.

This method would ensure that FiatDAO stakers receive at least 75% of rewards without heavy dilution from Barnbridge which owns most of the BOND in existence.

6 Likes

LFG, great idea! It sucks for the current FD stakers, but don’t forget FD stakers will also receive a (utility?) NFT which Barnbridge DAO stakers wont.

1 Like

I think it’s a great idea. I would even say we should farm ENTR & LEAG and convert the rewards to USDC, because, unlike FDT, voting power in those two has little utility for BarnBridge. We already know all three have solid contracts.

1 Like

You mean, dump on the other projects? I don’t think that is the type of strategy BB wants to set an example for.

1 Like

I agree with Tyler that we include League DAO and Enter DAO for BOND staking contracts. There should not be preferential treatment given for any one project over another and all BOND staked should be returned to the treasury at the end of staking. I appreciate Mike proposing the idea and hope the Barnbridge community can appreciate the fairness in this approach. Thank you!

I really like the idea of BB DAO owning FDT however I don’t support this method. The POC distribution is meant for decentralization and 1MM BOND would severely dilute the many members of this community who wish to participate in FIAT DAO.

I would support BB DAO buying FDT though. Or, supporting BB and FIAT by minting senior bonds and then collateralizing for FIAT (once live).

8 Likes

I voted against this proposal for a number of reasons:

  • TLDR - The optics are terrible. BarnBridge has already been given preference compared to other communities in the FDT token distribution (rightfully so); but, I’m concerned further accumulation of FDT governance power by our community (at this stage) would detract other communities from competing for governance which devalues our investment and weakens the overall utility of the project.

  • We are supposed to be giving this project independence. I am having a hard time thinking of any reputable project where the spinoff’s token was chased by the entity it was separating from. This would be like Synthetix farming to gain control of Lyra.

  • I believe there is overlap between entities who were seed investors in FIAT DAO and significant BB DAO stakers which goes against the ethos of seed round investors not farming noting it would be rather indirectly.

Overall I get that this is only 2% of the FDT supply, but I would much rather visit other methods of gaining FDT tokens later on or being content that the FDT community is already incentivized to support BarnBridge. Also, I’m totally against us farming other related project such as LEAG or ENTR.

4 Likes

agree completely. i just assumed it was not in line with the end goals of a defi protocol, but can not disagree with the paths forward i think both of those assets have and feel they will be a good addition to the Dao.

If this was announced before start of PoC I wouldn’t be moving my BONDs. I did my math and risk my tokens to participate in the PoC BOND pool. Now with such proposal where I can’t vote it looks like a very dirty move to everyone in my situation. I’m not OK BB to become the whale who suck up the rewards. If BB want to earn some $FDT then it should participate in some of the next stages (not PoC)

3 Likes

I’ve been back and forth on this, but feel your first point alone is sufficient reason enough to not put this proposal to a vote.

The following really need to be stressed:

  1. Optics

    If we’re struggling as a community in determining whether this sounds shady… it might be shady.

  2. Leverage

    Not downside protection or upside multipliers, but the political capital we’re already getting as part of the FIAT spinoff…

    • 7,500,000 FDT designated for BOND holders via Proof-of-Capital Rewards
    • 25,000,000 FDT for the BarnBridge airdrop – including a concentrated 12.5M that went to community members committed enough to governance that they voted.

Out of the gate, BarnBridge community members are being rewarded a substantial stake in FIAT DAO governance. The Motivation for the proposal is solid, but there’s an argument the call has already been met.

5 Likes

Farming project that BarnBridge incubated and using not circulating treasury funds really doesn’t taste good and kind of feels like cheating at this point.

Yes, this had to be initially comunicated between the 2 teams:
“FIAT - Hey guys, thank you for all your help and consulting. We will seed you 1% of the $FDT because of that”
“BB - Sure, no problem but can we get %3?”
“FIAT - Let’s meet in the middle - 2%”
And lived happily ever after

Mike, thanks for putting this proposal together! I think we should start being more active with treasury allocation and this proposal is very interesting. Good summary of the pros and cons, too!

Disclaimer: I am staking BOND in the FDT pool.

Not sure I follow the logic here. If anything, the FDT that will be held by the DAO is almost guaranteed not to be dumped in the market versus any individual BOND holder that is staking in the pool. Also we are not diluting participants from other communities.

1 Like

Im not sure this is the right thing to do. I did the maths and it wasn’t worth me jubilee staking my small pot, I’d be really annoyed if I had staked and then been torpedoed by my own BB community. There will be plenty of $BOND holders with significant FDT holdings to align the two communities.

However, it’s good that these ideas are brought up and discussed, so thanks Mike

3 Likes

I’m indecisive on this. I like the idea from the DAO’s standpoint, but do also have some concerns about community optics (which wouldn’t have been a concern if this proposal was there prior to the start of the jubilee).

5 Likes

I am also against this proposal.

  1. We would fuck Bond stakers on Fiat
  2. Fiat have already allocated enough $FDT to BB community. That would lead to more gov power over $FDT for BB community. Feels quite enough atm.
  3. Farming with “non circulating tokens” kind of smells shady to me
3 Likes