STP-3: Synthetix Ecosystem Fund
| Author | |
|---|---|
| Status | Draft |
| Implementor | TBD |
| Release | TBD |
| Created | 2023-06-02 |
Simple Summary
This STP proposes a pool of funds allocated to funding ecosystem projects as well as buying liquid crypto tokens.
Abstract
The Treasury Council will establish a new discretionary multisig that is mandated to invest in both liquid crypto tokens as well as early stage projects within the Ethereum ecosystem, with a specific focus on the Synthetix ecosystem on Optimism. This fund will initially be seeded with 1m SNX and 1m sUSD.
Motivation
The Synthetix treasury does not currently have a mechanism to invest directly in its own ecosystem. While there have been a handful of investments made by the DAO into projects like Kwenta, this has been done on an ad hoc basis, and the DAO is not percieved to be actively investing in the ecosystem. Current market conditions present an opportunity to diversify the treasury and create a diversified portfolio of both liquid and early stage investments to remove the concentrated risk posed by so much of the treasury being held in SNX.
Specification
Overview
A new multisig will be deployed on Ethereum, SNX and sUSD will be transferred into this multisig for the sole purpose of investing into the Ethereum ecosystem. The TC will meet on a monthy basis to review the current state of this fund and make decisions about any new opportunities.
Rationale
Historically the DAO has been extremely conservative with respect to allocating funds towards anything other the protocol expenditure. This defensive stance has ensured that the DAO has been sufficiently well capitalised to cover the continued operational expenditure of the DAO. However, other than the SNX token the DAO has very little expsoure to the success of the Synthetix ecosystem or the wider Ethereum ecosystem. It is an opportune time to correct this by begining to allocate capital towards liquid tokens and early stage opportunities to capture upside from the continued growth of the ecosystem. Given the depressed prices of many assets in the ecosystem a policy of cost averaging into liquid crypto will allow the Treasury to acquire assets at low valuations over time in the expectation that the market will eventually recover and many of these assets will experience significant price appreciation.
Financial Specification
Assets to be transferred to a new 3/4 multisig controlled by the current Treasury Council: 1,000,000 SNX 1,000,000 sUSD
Copyright
Copyright and related rights waived via CC0.