Simple Summary
This proposal calls for the Deployment of 1inch Treasury Self - Earning Engine
Motivation
The 1inch Treasury currently sits IDLE, staring at $15 Million
With the 1inch DAO Treasury’s Historical Rate of Growth , it’s a Perfect Time for immediate action to Support & open new gateways for the Ecosystem in Multiple Ways via Properly utilizing this Ultimate Source in a Proper Manner to generate an Alternate revenue stream
Abstract
1inch Treasury differs from other DAO treasuries , both in How it Generates its revenue [Swap Surplus - Smart] & How it has kept Value During Market Turmoil we’ve seen since Last Year while some DAOs are struggling with the same.
1inch Treasury as of now is the Only Treasury in Whole DEFI Still in Surplus profits because of the Decisions Made by Founders & DAO members to allocate Treasury in Stable
While Staking Rewards got wiped out for a While & Treasury is getting FAT by each day. It’s time to take a step further in the process to generate alternate sources for more revenue for the Treasury for its Long Term Sustainability. Thus, leading to the creation of this very proposal.
Specification
Strategy Layout
Proposal Action items :
- Vote for DAO Treasury % Allocation
- Choose & set up Committee | The Triad
- Decide on Collaboration or Follow up with Selected Protocols
DAO process : Proposal \ Voting \ Filteration \ Selection \ Announcement
Dev Team Tasks :
- Analytics Dashboard UI - Treasury Breakdown , Selected Projects , Allocation Size
- Reassessment UI - Project Health Factor , Contract Changes Detection
1. Treasury Fund Allocation %Age
Deciding how much Treasury Funds should be deployed for this strategy .
Decision Pending . Previous poll showed an inclination towards 2 options. Close call
Final Voting -
-
More than 50% -
More than 80%
0 voters
2. APY Selection
- Voting Conclusion passed with A Majority in favor of :
Medium APY then Low APY .Thus ,
Hard Floor Set for APY = Less than 30%
Examples :
Low APY project = 1inch earn
Medium APY project = Bancorv3 USdC pool
3. Diversification Quota
Ceiling for the Amount of Protocol Applicants to be Selected under Medium & Low APY Categories
- Voting Conclusion passed with A Majority in favor of :
More than 5 Projects in each category
4. Projects Reassessment
- Voting Conclusion passed with A Majority in favor of :
Biweekly Assessment of Selected projects
The Triad - Filteration \ Selection \ Announcement
Will help in the selection of assets , selection of protocols where those assets can be deployed as well as deciding upon risk tolerance and asset restructuring of the treasury. Short-term trades are excluded and only assets with long-term holding periods are considered.
Formation -
1inch High Table called High Command 
1inch Committee called 1inch Berserkers 
1inch Investigators called 1inch Watchtowers 🕵🏻♂
Main :
- A consortium of DAO members , Existing 1inch Multisig. & 1inch Contributors Verifying the submissions & Reports
Setup :
-
No. of members should be no less than 7
- a.
3 chair reserved for dao members - b.
3 chair for 1inch contributors - c.
1 chair for multisig
- a.
-
Amount of power distribution -
-
Voting Conclusion passed with A Majority in favor of :
40[a.] 40[b.] 20[c.], where 60% quorum [a.]+[b.] is required to pass
-
-
Veto -
-
Voting Conclusion passed with A Majority in favor of :
Apply Veto,1inch Multisig[c.] have the right to veto in case of malacious submission
-
Tasks :
- Decide the Members of 1inch committee
- Analyze Project Submission requests of 1inch committee
- Analyze Reports of 1inch Watchtowers
Main :
Start the Hunt in the search for Best protocols & Examine Several Instruments offered by such Protocols Under a Deadline set by the HC { Approve/Disapprove Submissions within a reasonable time frame }
Setup :
Generally Appointed by HC
- Share the PGP public keys - using 1inch committee tools or else.
- Share Twitter or Github accounts of the committee members
- Commit at least X Amount 1inch tokens [ If necessary ]
- Share a Multisig address of the committee members - Rinkeby and Mainnet.
- Could be 1inch Staff & Dao members or Other project Members etc.
Tasks :
- Report Projects to High Command after proper & careful research
- Set up repositories & other details under review in below template
- Be responsive via telegram , discord , forum etc
Template to be used for project submission :
Template
Project Name :
Docs Link :
Founders/Team Info :
Founded : Deloyment Age of the protocol
Instrument Type : Options , Leverage , Farming , Lending , Borrowing etc
No of Exploits : Major , Minor , Critical , None
Expected APY - Low , Medium , High
Number of Audits & Reports link -
Latest Audit Scores - Certik etc.
Main :
1inch Watchtowers🕵🏻♂️ can vote for objection for the Exclusion of a specific protocol & submit a proper reason for it 5 days before the Temp check of the Project list generated by HC
Setup :
- Can be Anyone. Even Anonymous.
- HC doesn’t have any influence over 1inch investigators & abides to work freely
Tasks :
Objection Report Submission to HC in a Proper Template block
Submission Template
Protocol Name -
Objection -
Details -
Severity - L ~ M ~ H ~ Critical
Ways to rectify - if any
Note -
-
Reports will then be examined by HC & if the Reason is justified & Severe, will remove that Protocol from the current voting until the decision or to next voting until Rectification or can be excluded permanently until Rectification .
-
Reward Distribution to Watchtowers for Successfully Approved Allegations .
Extra Rules -
- Contributors can’t occupy the DAO chair
- Re-election in case of a bad actor spotted on the chair & all other votings will be put on hold until the High Table chair is full
- A 2 contributor reference vote can directly reserve 1 Chair of DAO
Triad Location
Triad members’ Discussions will be held in a #treasury channel which is only accessible to committee level members with following sub Section -
- Discussion
- Submissions | open & moderated
- Final List
Note - better places May be explored by the 1inch team in the near future
Tenure of The Triad
-
1inch committee & 1inch Watchtowers will not have any tenure as their Sole purpose is submissions to HC
-
Only HC DAO seats will have a period [ Full Quarter ] after which anyone can challenge/apply for the DAO chair under HC .
Transparency & Financial Reporting
Initially, We will present Treasury info over an official Debank profile or Google sheets. A bit more elaborate and complex financial reporting to arrive in the future as we gather the best practices from the industry. Metrics, when expanded, will include forecasting expenses, remaining runway, and similar. This may include a proper Dev task to set up a Proper UI.
Dashboard/Insights
Next Steps after Snapshot -
Upon passing a signaling snapshot poll, we may begin diversification discussions with interested parties. As allocations are agreed upon and undertaken, they will be shared on the 1inch forum and channels.
Future
-
*Allocation of 100k from the treasury to incentivize participation of the Triad Distributed after the Treasury Allocations are Finalized.
-
Introduction of 1inch Relief Fund War chest [TBD after Snapshot]
Developer Tasks -
Summary
if the idea passes, we can work for full implementation of such a Dashboard in UI that will include the following -
Active Analytics Dashboard showing -
Current allocation of Treasury
Projects
Funds allocated to diff projects
Current risK scores
Interest Accuring Data etc.
Benefits to 1inch Community
- DAO earnings can directly be shared with 1inch stakers with 0 impacts on treasury
Offers another functionality to the 1inch token. - A New attraction to the 1inch platform
- More Trading Volume Surge will benefit 1inch Stakers in DAO
- More Participation in governance as more people holding 1inch tokens
Considerations
-
If the Health Factor of a Project Drops -
-
Kickstart 100% Funds Extraction from the Affected Protocols at once with No delay .
-
After Extraction , A careful restructuring will be proposed & after agreed upon between the committee members, 1inch Team will cast a snapshot vote with the whole DAO with a minimum of 2 days duration period. After that, the restructuring will be implemented.
-
Note -
RESTRUCTURING Includes Exclusion in case situation is severe or Reinclusion in case of False Alarm
- Treasurer -
It is also suggested to have the role of the treasurer, which guide discussions about treasury management and executes liquidity rebalancing. Better suited for 1inch Team.
This Code Block will be Used for Snapshot Voting Page
[Stage 1 Post](https://gov.1inch.io/t/tip-self-earning-dao-engine-v1-0/3145)Simple Summary
This proposal calls for the Deployment of 1inch Treasury Self - Earning Engine
Motivation
The 1inch Treasury currently sits IDLE, staring at $15 Million
With the 1inch DAO Treasury’s historical rate of growth, it’s a Perfect Time for immediate action to Support & open new gateways for the Ecosystem in Multiple Ways via Properly utilizing this Ultimate Source in a Proper Manner to generate an Alternate revenue stream
Abstract
1inch Treasury differs from other DAO treasuries , both in How it Generates its revenue [Swap Surplus - Smart] & How it has kept Value During Market Turmoil we’ve seen since Last Year while some DAOs are struggling with the same.
1inch Treasury as of now is the Only Treasury in Whole DEFI Still in Surplus profits because of the Decisions Made by Founders & DAO members to allocate Treasury in Stable
While Staking Rewards got wiped out for a While & Treasury is getting FAT by each day. It’s time to take a step further in the process to generate alternate sources for more revenue for the Treasury for its Long Term Sustainability. Thus, leading to the creation of this very proposal.
Specification
Strategy Layout -
Proposal Action items :
- Vote for DAO Treasury % Allocation
- Choose & set up Committee | The Triad
- Decide on Collaboration or Follow up with Selected Protocols
DAO process : Proposal \ Voting \ Filteration \ Selection \ Announcement
Dev Team Tasks :
- Analytics Dashboard UI - Treasury Breakdown , Selected Projects , Allocation Size
- Reassessment UI - Project Health Factor , Contract Changes Detection
> 1. Treasury Fund Allocation %age
Deciding how much Treasury Funds should be deployed for this strategy .
- Voting Conclusion passed with A Majority in favor of :
More than 50% *
More than 80% *
- Only 1 out of 2 , According to Majority Vote
> 2. APY Selection :
- Voting Conclusion passed with A Majority in favor of :
Medium APY then Low APY .Thus ,
Hard Floor Set for APY = Less than 30%Examples :
Low APY project = 1inch earn
Medium APY project = Bancorv3 USdC pool> 3. Diversification quota
Ceiling for the Amount of Protocol Applicants to be Selected under Medium & Low APY Categories
- Voting Conclusion passed with A Majority in favor of :
More than 5 Projects in each category> 4. Projects Reassessment
- Voting Conclusion passed with A Majority in favor of :
Biweekly Assessment of Selected projectsThe Triad - Filteration \ Selection \ Announcement
Will help in the selection of assets , selection of protocols where those assets can be deployed as well as deciding upon risk tolerance and asset restructuring of the treasury. Short-term trades are excluded and only assets with long-term holding periods are considered.
Formation -
A. 1inch High Table called High Command
B. 1inch Committee called 1inch Berserkers
C. 1inch Investigators called 1inch Watchtowers 🕵🏻♂️
> A. 1inch High Table called High Command
Main :
- A consortium of DAO members , Existing 1inch Multisig. & 1inch Contributors Verifying the submissions & Reports
Setup :
No. of members should be no less than 7
- a.
3 chair reserved for dao members- b.
3 chair for 1inch contributors- c.
1 chair for multisigAmount of power distribution -
Voting Conclusion passed with A Majority in favor of :
40[a.] 40[b.] 20[c.], where 60% quorum [a.]+[b.] is required to passVeto -
Voting Conclusion passed with A Majority in favor of :
Apply Veto,1inch Multisig[c.] have the right to veto in case of malacious submission
Tasks :
- Decide the Members of 1inch committee
- Analyze Project Submission requests of 1inch committee
- Analyze Reports of 1inch Watchtowers
> B. 1inch Committee called 1inch Berserkers
Main :Start the Hunt in the search for Best protocols & Examine Several Instruments offered by such Protocols Under a Deadline set by the HC { Approve/Disapprove Submissions within a reasonable time frame }
Setup -Generally Appointed by HC
- Share the PGP public keys - using 1inch committee tools or else.
- Share Twitter or Github accounts of the committee members
- Commit at least X Amount 1inch tokens [ If necessary ]
- Share a Multisig address of the committee members - Rinkeby and Mainnet.
- Could be 1inch Staff & Dao members or Other project Members etc.
Tasks -
- Report Projects to High Command after proper & careful research
- Set up repositories & other details under review in below template
- Be responsive via telegram , discord , forum etc
Template to be used for project submission :Template
Project Name :
Docs Link :
Founders/Team Info :
Founded : Deloyment Age of the protocol
Instrument Type : Options , Leverage , Farming , Lending , Borrowing etc
No of Exploits : Major , Minor , Critical , None
Expected APY - Low , Medium , High
Number of Audits & Reports link -
Latest Audit Scores - Certik etc.> C. 1inch Investigators called 1inch Watchtowers 🕵🏻♂️
Main -1inch Watchtowers🕵🏻♂️ can vote for objection for the Exclusion of a specific protocol & submit a proper reason for it 5 days before the Temp check of the Project list generated by HC
Setup -
- Can be Anyone. Even Anonymous.
- HC doesn’t have any influence over 1inch investigators & abides to work freely
Tasks -Objection reports Submitted to HC in a Proper Template block
Submission Template
Protocol Name -
Objection -
Details -
Severity - L ~ M ~ H ~ Critical
Ways to rectify - if any
Note -
Reports will then be examined by HC & if the Reason is justified & Severe, will remove that Protocol from the current voting until the decision or to next voting until Rectification or can be excluded permanently until Rectification .
Reward Distribution to Watchtowers on Successfully Approved Allegations .
Extra Rules -
- Contributors can’t occupy the DAO chair
- Re-election in case of a bad actor spotted on the chair & all other votings will be put on hold until the High Table chair is full
- A 2 contributor reference vote can directly reserve 1 Chair of DAO
> 1. Triad Location
Triad members’ Discussions will be held in a #treasury channel which is only accessible to committee level members with following sub Section -
>* Discussion
>* Submissions | open & moderated
>* Final List
Note - better places May be explored by the 1inch team in the near future
>2. Tenure of The Triad
1inch committee & 1inch Watchtowers will not have any tenure as their Sole purpose is submissions to HC
Only HC DAO seats will have a period [ Full Quarter ] after which anyone can challenge/apply for the DAO chair under HC .
Transparency & Financial reporting
Initially, We will present Treasury info over an official Debank profile or Google sheets. A bit more elaborate and complex financial reporting to arrive in the future as we gather the best practices from the industry. Metrics, when expanded, will include forecasting expenses, remaining runway, and similar. This may include a proper Dev task to set up a Proper UI.
Dashboard/InsightsNext Steps after Snapshot -
Upon passing a signaling snapshot poll, we may begin diversification discussions with interested parties. As allocations are agreed upon and undertaken, they will be shared on the 1inch forum and channels.Future
*Allocation of 100k from the treasury to incentivize participation of the Triad Distributed after the Treasury Allocations are Finalized.
Introduction of 1inch Relief Fund War chest [TBD after Snapshot]
Developer Tasks -
Summary
if the idea passes, we can work for full implementation of such a Dashboard in UI that will include the following -
Active Analytics Dashboard showing -
Current allocation of Treasury
Projects
Funds allocated to diff projects
Current risK scores
Interest Accuring Data etc.Benefits to 1inch community
- DAO earnings can directly be shared with 1inch stakers with 0 impacts on treasury
Offers another functionality to the 1inch token.- A New attraction to the 1inch platform
- More Trading Volume Surge will benefit 1inch Stakers in DAO
- More Participation in governance as more people holding 1inch tokens
Considerations
- If the Health Factor of a Project Drops -
Kickstart 100% Funds Extraction from the Affected Protocols at once with No delay .
After Extraction , A Careful restructuring will be proposed & after agreed upon between the committee members, 1inch Team will cast a snapshot vote with the whole DAO with a minimum of 2 days duration period. After that, the restructuring will be implemented.
RESTRUCTURING Includes Exclusion in case situation is severe or Reinclusion in case of False Alarm
- Treasurer -
It is also suggested to have the role of the treasurer, which guide discussions about treasury management and executes liquidity rebalancing. Better suited for 1inch Team.
They are both great.
