Regen Pool - The Path to an Angel Vault... and maybe much more!

The Giveth Platform
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If you want to see the full notes, we are working from this doc: Regen Pool Parameterization - Google Docs

Here is quick overview of the Friday’s call

Why are we doing all this?

If we go for this, we will open up 3 incredible products for our community:

  1. Regen Pool: A lending market that benefits projects on Giveth
  2. oneGIV: Our own stable coin
  3. Angel Vault: A structured Univ3 pool that can be farmed

Regen Pool Scope Conclusion:

Proposal: Don’t promote the Regen Pool UI, or even so much the details of what we are doing people will deposit FEI on our site and that’s what we promote.

Note: Depositors will get a small % of FEI + a GIVstream, we need to do a little technical feasibility here still

WIP Roadmap

GIV Collateral for Loan

We should base our estimates on having at least a 250% collateralization, even if the GIV token drops to 10 cents

FEI Amount to Borrow - Max and Min

No Max, No Min, we grab the FEI we need to hit 10% of our market cap and move on from there.

Source of GIV for Loan

As much GIV from GIVgarden as we can + some from liquidity multisig. nrGIV can do the reward stream so all DAOs have to vote.

  • Liquidity multisig would require snapshot vote
  • GIVgarden requires Conviction VotingV
  • nrGIV through its Aragon DAO

Where does the GIV go?

The address that receives the GIV can borrow the FEI, and might have many small actions to take on a daily basis

To have speedy actions, let’s use a 3 / 5 or 3 / 6 Gnosis Safe - want to have at least 3 signatures & nice to have in-the-know people. Will require nrGIV to be a member.

FEI Repayment Strategy

When we take this loan out, we are not “Spending” the money as much as we are Staking the money.

We will learn a lot more to make this decision later, but it would be irresponsible to take out the loan without thinking about how we pay it back.

Discussion:

  • We can take the money back and pay off the loan soon after the launch if we have successful farming.
  • The interest rate will be small, around 1.5-5% (in FEI). If we borrow 800k that is 40k a year MAX, which is about the cost of 1 team member. When thought of like that, in many ways it seems like a pretty awesome deal maybe we wait to pay it off for a year and use the stable coin farm to attract degens to turn them into regens.
  • We could make univ3 pools above the price so that as the price rises, we sell GIV for oneGIV & pay it back like that
  • Shapeshift arbitrages: mints oneFOX and trades for USDC when there’s more USDC in the pool - makes $ from rebalancing the pool

Param Hack Sesh!! 1-3 pm Tuesday MST / Costa Rica Time

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Also worth noting. There was a huge hack of a few Fuse Pools… we are watching to see if they have any more issues… but as of now, we are still planning on proceeding.

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Good news! With the info we have today we are still looking good to pursue this path.

Param Party, It happened:

We held a Param Party this week to parameterize the Regen Pool and the Rewards, if you want to play with the params, play with this spreadsheet: GIVeconomy Working Sheet (Regen Econ) - Google Tabellen

And you can see how we used the sheet and an overview of the parameters that we chose here:

Param Party Results

  1. We are going to turn off all functionality of the Regen Pool for now, besides what we need to get the FEI for our Angel Vault. That means no one can deposit some random token and borrow against their collateral, people deposit FEI, we deposit GIV to borrow that FEI, no one else will be able to borrow the FEI besides us… simple.

  2. We will also not advertise the Fuse Pool UI, instead we will make a card in our GIVfarm for depositing FEI and we will set it so we are the only group that can deposit GIV.

  3. The amount that we will borrow we estimate will be about $1M FEI but the exact amount will be determined based on the market cap of GIV so we can make the Angel Vault 10% of our market cap.

Here were the other params we settled on:

Regen Pool Params

Param Our Choice
FEI LTV 0%
GIV LTV 75% (Liquidation 133.33%)
Initial GIV Collateralization 300%
Top up GIV Collateralization @ 250%
Front-End FEI Deposit Cap (per Address) 200k
Upgradeability Yes
Reserve Factor 10%
Interest model FEI/FEI
Assets FEI & GIV
Admin fee 10%
Whitelist None
Close Factor 33% (advised by Rari)
FEI Supply Cap 4M
GIV Supply Cap What we deposit

GIVstream Reward Params

We propose to target a total of 30% APR (2.5% in FEI and 27.5% GIVstream) at 1,500,000 FEI deposited, if we hit the 4M FEI Cap, the APR will be about 11%.

We propose to allocate 1,000,000 GIV from the Givstream to incentivize depositors for 6 months, but the exact rate of rewards will be determined by the price of GIV at deployment and adjusted regularly by the GIVeconomy Research Group, and the exact length of rewards will be determined by how long we want to continue the loan.

Regen Pool Management Multisig

We will make a new 3/5 gnosis safe for managing this process and the pool. I want to nominate the 5 nrGIV holders that are closest to this process:

Me (Griff)
Willy
GiantKin
Lauren
Mitch

One Decision Left

All the params above are of course still in advice process, and can be challenged in this thread, but there was one parameter that we didn’t

There is one Parameter we still need input on.

Do the Admin Fees go to donation.eth or giv.eth?

Admin fees from our loan will amount to $50-$500 paid in FEI per month… They would need to be withdrawn and are on mainnet… so honestly from our initial set up, the fees may not amount to much that is worth claiming because of gas on mainnet… that said there is an option to use the Regen Pool for other things in the future, so the initial setting will likely carry over, and the admin fees have the potentianl

As a Regen Pool, it would make sense for the funds to go to donation.eth, and eventually directly to verified projects there is a nice bit of marketing that we can enjoy from this choice. It would be the only Fuse Pool that supports Public Goods.

As a DAO we also could use this as a revenue stream, and since our purpose is very impactful, it’s not a stretch to say if the funds go to giv.eth then it is still a Regen Pool. giv.eth can also choose to donate those funds later, if appropriate.

Where should the Admin Fees go?

  • donation.eth Let’s Regen it!
  • giv.eth Let’s start a Revenue stream!
  • I have a third option (and will add it below)
  • Abstain

0 voters

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Wait, weren’t we still debating the LTV?

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We debated it in the GIVeconomy Research Call and settled starting out at 300% Overcollateralized (and we reup at a 250% to 300%) and 75% LTV (which means we get liquidated at 133.33% Colateralization).

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Had a great call with Grace and Dan about setting up our Angel Vault and oneGIV token…

Things we learned:

#1 If we want a 4 Mil oneGIV market cap, we will want to put $1.2M USD worth of GIV up as collateral and 250k worth to mint oneGIV, so for the Regen pool calculation, this will increase our market cap 1.45M USD

#2 That GIV will go into a 4/6 multisig that has 4 Giveth people and 2 Ichi people

#3 they would like to align with us on a loan… we loan them $500k USD worth of GIV and then they will do market making with it and they will pay us back either the same GIV tokens, or 600K usd worth of Angel Vault LP… this is something we will want to debate in a forum post

Here is the recording of the call:

Notebook - Fireflies.ai - Free Meeting Recorder

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