Let's create a multisig and send GIV to it to manage the collateral in the Regen Pool

Hey fam,

Introduction / Catch Up

There has been significant discussion on setting up the Angel Vault and the road to get there. Basically we need to get a $600k to $1M of FEI to create oneGIV (stable coin) to deposit into the Angel Vault (as a GIV/oneGIV pair).

The amount of FEI that we need will depend on what we predict our marketcap will be at the launch of the Angel Vault. The volatile market conditions make this relatively unpredictable. We want to borrow enough FEI to create an angel pool that creates a buy wall that is 10% of our market cap at launch, for the rest of this post we ASSUME that is $1M FEI but it likely will be less than that.

The plan to get the FEI is to set up a Rari Fuse pool, basically our own, Aave style borrowing/lending pool, named the “Regen Pool”, and incentivize our community to deposit FEI into that pool. We are aiming for a 30% APR (part of it being part of the GIVstream) returns for about $1.5M of FEI deposited.

We will be putting GIV into that pool & borrowing the FEI. Then using that FEI to create oneGIV. We will be providing $1.2M USD worth of GIV as collateralize up to 4M oneGIV to be minted and safely cover any fluctuations in the GIV token price.

Anyway, this is all explained at length in this post:

This Proposal

This proposal is here to discuss this one element of that whole big shebang, namely:

We need to provide & manage this GIV collateral in the Regen Pool

There are two parts to this proposal:

  1. Decide on & confirm the params & signers of that multisig

  2. Vote to send GIV to that multisig so that it can manage the GIV collateral in the Regen Pool.

1. The Regen Pool Management Multisig

In this post Griff suggested a 3/5 gnosis safe for managing the collateral & this process, with the following 5 nrGIV holders, since they are closest to the process:

Griff

Willy

GiantKin

Lauren

Mitch

Do you think these are good signers for the 3/5 multisig to manage the Regen Pool?

  • Yes, love that bunch!

  • No, I will comment my alternative suggestion

  • Abstain

0 voters

2. Sending GIV to the Regen Pool multisig

We decided to overcollateralize the pool by 300%. I think the multisig should hold an extra 50% just in case the GIV price fluctuates & we need to add more GIV to the pool without a long decision making process.

So, the multisig will need 350% of the amount of FEI we intend to borrow, and we are proposing to send it to the Regen Pool multisig from our liquidity mining multisig, and then reimburse the liquidity mining multisig with a couple of GIVgarden proposals & a proposal requesting funds from the nrGIV DAO.

As said above, the market right now is super volatile, so if the GIV price drops, we may actually need to borrow less FEI than originally planned to set up the vault with 10% of the GIV market cap.

Some napkin math:

  • If we intend to borrow $1M of FEI, we need $3.5M equivalent of GIV

  • If we intent to borrow $500k of FEI, we need $1.75M equivalent of GIV

So! Although the math is TBD, this is the process we hope to follow, baring any objections.

Do you agree to send the needed amount of GIV from the liquidity multisig to the Regen Pool multisig to manage collateral in the Rari Pool?

  • Yes, send 'er

  • No, I will comment my objections

  • Abstain

0 voters

Next Steps

I will leave this proposal up for the standard 5 day advice process. If we get soft consensus on the multisig here, we will go ahead & set that up. If we get soft consensus on sending the funds, I will create a snapshot vote to ratify this movement of funds & then take the steps to send it.

Following that, I will create the GIVgarden & nrGIV funding requests to reimburse the liquidity mining multisig - but would also like some feedback on this in the comments.

3 Likes

Sorry I wasn’t able to attend the GIVeconomy calls today, what was the rationale for using nrGIV funds and the GIVgarden to get the funds needed for this liquidity initiative?

Here’s the link to the recording: Giveth Livestream - GIVeconomy Research - May 11, 2022 - YouTube

Well, without going and looking at the numbers… basically it will require a lot a lot of GIV ti do this & we have quite abundant GIV in the GIVgarden. It would be good to still have a good chunk of GIV in the liquidity multisig after the angel vault for token swaps & other future endeavours… so we reimburse the liquidity multisig - at least partially - from the GIVgarden & partially from nrGIV to dampen the impact accross our sources.

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Okay, yeah without going into too much nitty gritty seems like a big criss-cross of accounting - I would suggest making the request from the liquidity multisig. I think using multiple GIVgarden requests is kind of a misuse of the platform. If the liq multisig needs more funds they should request it, rather than sideline the liq multisig altogether and start drawing funds from pools that shouldn’t be used for this sort of initiative.

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I would love to hear more of the nitty gritty.

I know a majority of the GIV we have for liquidity initiatives is sitting in mainnet, bridging it over onto Gnosis Chain has created before some anomalies in our circulating supply, throwing our numbers way out of whack as they show on some coin listing sites.

nrGIV is for paying contributors and bounties, not for liquidity initiatives.

similarily the GIVgarden’s funds are for external initiatives like sponsoring events, external contributors who want to buiild products and for rewarding teams/protocols that create(d) value for giveth

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Added a tab to Calculate the Market Cap and how much GIV we need for each bucket:

Ok as per the gov call, we will be using the funds from the liquidity multisig.

We will then create a proposal in the forum requesting GIVgarden funds to reimburse the multisig & it’s up to the community to decide if we do it or not.

We will not request funds from nrGIV & keep those earmarked for contributor payments & bounties.

1 Like

Closed the polls today after 6 days of advice process. Looks like we can move forward with setting this up!

2 Likes