Summary: Allow the Treasury team to deposit assets into major defi protocols
Background: Following OIP-54, the community voted to allow the Treasury team to deposit up to 50% of excess reserves into whitelisted yield generating protocols. So far, Aave, Convex, Sushiswap (Onsen), Compound, Liquity & Rari have been whitelisted. This proposal seeks to allow the Treasury team to deposit assets into any Defi protocol that meets the criteria enumerated below.
Motivation
Going into 2022, the Treasury team aims to further accelerate Olympus’ treasury growth by generating yields on all assets at our disposal. To more efficiently do so, the Treasury team needs to have the flexibility to deposit across all the major battle-tested defi protocols. To deposit funds into smaller/newer protocols, the Treasury team will still have to seek approval from the community on a per case basis.
Criteria
Risk Assessment
As always, risk management remains one of Treasury team top priorities. Amounts deposited into any of the eligible/whitelisted protocols will vary based on the rigorous risk analysis conducted by the Treasury & Policy teams.
Due diligence is mainly performed through the risk analysis framework developed by the DAO. It attempts to score various protocols based on some subjective and non-subjective data. The subjective values are derived from averaging the votes of multiple DAO members. The risk of losing funds refers to the chance that assets are lost before the initial investment doubles, while the impact of lost funds refers to how much treasury value will be lost if an incident occurs. Below is an extract from the latest risk analysis done prior to getting Rari protocol whitelisted.
Proposal
Grant authority to the Treasury team to deposit funds into protocols that meet the aforementioned criteria.