TAP stands for
Treasury Asset Proposal
TAP-1 will highlight the recent increase in allocations to Aave ($10.5m now) and Convex (targeting 4.5m)
TAP-2 will highlight an increase in allocation to the Sushi Onsen (for 25% of SLP holdings)
Summary: Following OIP-20, we would like to begin piloting deposits into new partners. Initially, we would like to deposit $100K Dai in Gro Protocol’s risk tranched PWRD vault (secured 270% by their leveraged vault product)
Motivation: PWRD is low-risk savings product. Designed to offer safer access to DeFi yields, tokenised as a stablecoin with built-in yield and protection. Its value is backed by three of the most traded stablecoins on the market—DAI, USDC, and USDT—but also protected against problems with any of them.
As Gro Risk Balancer spreads risk across stablecoins, this helps to protect PWRD if one of DAI, USDC, or USDT fails or gets censored. It then offers Deposit Protection, as the risk tranching mechanism means that any loss of capital from stablecoins or yield strategies is first absorbed by the Vault, letting PWRD generate yield more safely.
Moreover, Gro presents a forward-thinking look at product design and enabling the next wave of new defi users. They’ve already secured partnerships with Argent and continue to attract new capital for their products.
We look forward to expanding this relationship following a pilot deposit. Based on community feedback this proposal has been adjusted.
Risks: Gro is a younger protocol following a guarded launch mode (~$10M TVL). This protocol carries similar composability risks as other yield aggregators but using the PWRD product protects us from various risks including yield platform failures and stable coin peg failures.
Our Dai would remain Dai in this engagement.