Proposal Title | Author(s) | Phase | Type | Date Created |
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Deposit $2.3m USDC from the Shutter DAO 0x36 treasury into the Avantgarde DeFi Yield Vault | Avantgarde Finance | II | Fractal onchain | 15 December 2024 |
Deposit $2.3m USDC from the Shutter DAO 0x36 treasury into the Avantgarde DeFi Yield Vault
Proposal
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Proposal to deposit $2.3m USDC from the Shutter DAO 0x36 treasury into the Avantgarde DeFi Yield Vault on Enzyme, which is a mirror of the Avantgarde DeFi Yield Fund, currently yielding around 19% (annualized).
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Diversified exposure to on-chain stablecoin yields across multiple sources, based on a robust protocol selection process and risk assessment framework.
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Non-custodial deposit with conservative risk profile.
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No active management required from the Shutter DAO 0x36, who still retains custody over the vault shares.
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Full transparency into vault activity with real-time analysis.
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Potential for long-term partnership with a leading crypto-native Treasury Manager.
After the recently successful temp check on Snapshot, “Avantgarde Finance to Support Treasury Management for Shutter DAO 0x36”, the Shutter DAO 0x36 has signalled its interest in depositing $2.3m USDC from its treasury into a yield-generating stablecoin vault on Enzyme. Accordingly, the approval of this proposal will execute said transaction from the Shutter DAO 0x36 treasury into the Avantgarde DeFi Yield Vault on Enzyme. Please find more information on the vault below.
Long-term, we can build on a partnership between Shutter and Avantgarde to implement more sophisticated strategies and a holistic treasury management structure that can sustainably support the DAO’s ongoing operations. For example, we’d be happy to manage any upcoming developments to sDAI and required portfolio changes as per the DAO’s needs and wishes.
Avantgarde DeFi Yield Vault
Vault page: Enzyme
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Non-custodial with smart-contract based roles & permissions
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Provides access to on-chain yields within DeFi, focusing on the largest, most battle-tested protocols
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Currently yielding around 19% (annualized), realistic average expectations 9-15% APY
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Aims to be diversified across stablecoins, protocols, and underlying yield sources
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Balances the level of yield with risk and capacity
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Actively managed
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Competitive fees, 0.5% protocol fee and 7.5% performance fee
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Full, real-time transparency into vault activity
Operational setup
The operational setup has changed slightly since the temp check:
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The vault will remain permissioned but not exclusively so: Shutter DAO 0x36 will be the only initial depositor and Avantgarde Finance will remain as the delegated manager with certain smart contract roles & permissions (ensuring that Avantgarde can not misappropriate the funds). However, the vault will remain open to other potential DAOs interested in utilising the vault for its treasury in a similar manner (this would require Avantgarde to whitelist them as a permissioned depositor). The benefit of this for Shutter DAO 0x36 is lower gas costs and slightly better overall returns. Since gas is always a fixed cost regardless of the transaction size, the lower the % share of total vault TVL that gas makes up, the less impact it has on total returns. Other than that, there will be no impact on the Shutter DAO 0x36’s deposit and yield; returns will be the same regardless.
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Ownership of the vault will be held by Avantgarde Treasury and controlled via a 3/5 multisig made up of two signers from Avantgarde Treasury, two signers from Avantgarde Finance, and one from Enzyme. This is to protect the DAO from scrutiny, regulatory or otherwise, and will have zero impact on the Shutter DAO 0x36’s assets and the non-custodial nature of this deposit. Importantly, any changes made to the vault won’t go into effect until after a 7-day cooldown period, meaning that in a scenario where changes were made to the vault that the DAO does not agree with, the DAO could simply withdraw beforehand. Please note that there is no reason to expect any such changes, and if there were, Avantgarde will make sure to communicate those on the forum with at least two weeks’ notice.
The rest remains the same:
- Fees would be calculated in the vault technology and paid out automatically
- Reporting is on-chain provable and auditable 24/7 via the Enzyme UI, and Avantgarde will provide additional formal reporting on the performance of assets on a quarterly basis, and can respond to interim questions as the community deems appropriate.
- Shutter DAO 0x36 can withdraw from the vault at any time. Please note that the DeFi Yield Vault may hold external positions on, for example, Pendle, which ideally should be closed before a withdrawal is initiated to ensure all rewards are collected prior. Hence, while the DAO could withdraw instantly and receive its deposit value in the tokens held in the vault, the optimal way would be for the DAO to communicate its desire to withdraw a week prior to allow Avantgarde to wrap up any open external positions and facilitate the withdrawal in USDC.
Motivation
Recent discussions on Treasury Management have shown a majority interest from the Shutter DAO 0x36 community to earn yield on idle treasury assets, with a desire for simplicity and a strategy that allows for minimized governance attention, operational risk and overhead. Recent Snapshot votes have signalled that the Shutter DAO 0x36 have chosen Avantgarde to support the DAO with treasury management, namely by depositing the treasury’s idle USDC into the Avantgarde DeFi Yield Vault on Enzyme.
Links
Original forum post: Avantgarde Finance to Support Treasury Management for Shutter DAO 0x36
Snapshot proposal: https://snapshot.org/#/shutterdao0x36.eth/proposal/0x9181b434949c18bbb6baaecd3534b581b379c118d6a71a17a33c211a72a83816
Vault UI: Enzyme
Test transactions: To be executed during the week of the 16th - 22nd of December and updated with links here.
Platform
Fractal
Transactions
Transaction 1 - Approve
target: 0xa0b86991c6218b36c1d19d4a2e9eb0ce3606eb48
function: approve
parameter types: address, uint256
parameter inputs: 0x4b4c67949b887fe22584d232ed76e3e10ec8769e, 2300000000000
transaction value: 0
Transaction 2 - Deposit USDC into the Avantgarde DeFi Yield Vault on Enzyme
target: 0x4B4c67949B887FE22584d232ED76e3E10eC8769e
function: buyShares
parameter types: uint256, uint256
parameter inputs: 2300000000000, 2277000000000000000000000
transaction value: 0
Voting Options
“YES”
Vote “Yes” to approve this proposal
“NO”
Vote “No” to reject this proposal
“ABSTAIN”
Abstain for voting for or against this proposal
License
CC0: This work is marked with CC0 1.0 as dedicated to the public domain.