After migrating DAO liquidity to Uniswap V3 in early 2022 [here], the DAO was able to create a Rari Fuse pool to enable BANK holders to borrow against their BANK.
What is Rari Fuse?
Winverse wrote a nice piece about it in the 4th June, 2022 issue of the Weekly Rollup(here), but in short Rari Fuse allowed the DAO to create its own money market. [link]
SPECIFICATION
If approved, the follow transaction will be initiated
BDAO multisig would submit a deposit transaction into the rari fuse contract
The treasury department will monitor this position and submit a proposal to withdraw when it is no longer feasible to earn yield from this strategy.
This proposal grants the Treasury Deptment the right to deposit the aforementioned funds into the Rari pool from, and the right to decide and execute the withdraw of such funds back into the DAO multi-sig when judged to be appropriate and necessary for economic or risk considerations.
Risks and disclosures:
As with anything in DeFi, this strategy is vulnerable to smart contract risks
The strategy is also vulnerable to loss of value resulting from by high slippage trades triggered by high volatility black swan events
The rari front end may go down, although this can be mitigated by interacting with the smart contracts directly. The Treasury Department will monitor this and be prepared to exit.
NEXT STEPS
Gather consensus in the Treasury Department, via poll found here
Get approval on the forum proposal
This proposal is presented as a patch as it does not alter the constitution
didn’t Rari shut down? If so does this create additional risk for our DAI?
could we add the ability for the treasury Dept to withdraw as they decide IN this proposal so we don’t have to get full consensus when it’s time to pull out?
gm frens! Stoked to see the convo about putting treasury assets to work. What kind of yield on DAI from an OG like Compound or Aave? Assume it’s small, like 1%, but I’d like to see some comps from more battle-tested protocols. Thanks!
The benefit with the Rari pool, is someone is winding down their loan with BANK in there, and so we assist with their interest rate, while also supporting the health of the smart contract loan.
What’s the probability of this happening? Is there something (or could there be something in place to protect against this?) possibly the idea that you guys added (give treasury the right to withdraw without a follow up proposal)
Thanks for proposing this @Jengajojo, agree that we should get all DAO units’ treasury working.
For the Marketing Department you proposed using the MakerDAO DAI Savings Rate Module.
What is the difference between the Rari and MakerDAO? Would it be possible to consider MakerDAO also for the DAO Treasury?
It would be interesting for Treasury Department to take the lead in working the DAO’s crypto so that other units could learn from this experience and implement them too.
Rari is an isolated money market, Maker is collateralized debt protocol
if we deposit everything into rari, then the interest would be much lower, which is why I suggested MakerDAO. Maker offers a lower yield than rari at the moment.
