We are extremely supportive of this initiative and believe that research and thought leadership across these areas is timely, given the DAO’s goals to diversify the treasury over the coming years.
We represent Avantgarde Treasury. Our team members have been developing tools for on-chain asset management for as long as eight years through a smart-vault technology called Enzyme. Our principles are clear and simple. We believe in
- Transparency: through verifiable real-time reporting, using on-chain data
- Self-custody: where full ownership stays with the DAO (or sub-DAO)
- Trustless delegation: leveraging smart-contract based roles & permissions to delegate asset management in a flexible and trustless manner
Aside from developing technological solutions, we also have a fast growing asset management business which supports DAOs and institutional clients with their portfolio management goals. We look after more than $50m worth of assets for leading names in the space.
Looking at the taskboard, we would be very interested in contributing towards the following tasks:
- (1) Taxonomy of ways to mitigate price impacts of selling $ARB.
- (4) Methods or case studies for how DAOs to diversify treasury holdings to traditional instruments like stocks/US bonds like avantgarde finance or Centrifuge Prime
- (9) Producing research in the “other” category involving how to think about asset liability matching and building a framework for investing around that.
On the topic of mitigating price impact from $ARB we would recommend a relatively easy and quick first step. Currently an $ARB price feed is not supported by Chainlink on Ethereum. We think that having an $ARB price feed, together with some community coordination will increase the use-cases of $ARB token across DeFi. This could help counter some of the selling pressure that may come as a result of the recent distributions being made. For example, teams like Index Coop and Avantgarde Asset Management can add $ARB to indexes more easily. Another idea is that the community can work on getting $ARB added to Compound v3 so that long term holders can use it as collateral to borrow against. This increases the “buy” and “hold” appeal to $ARB. It can also increase the capital efficiency of long term $ARB holders.
Summary:
This proposal covers two areas:
- For Avantgarde Treasury to contribute to three research tasks (1, 4, 9) on the Treasury & Sustainability Working Group taskboard as detailed above
- To establish a Chainlink price feed for ARB on Ethereum
We appreciate any feedback where appropriate and are happy to answer any initial questions.