Profile of WildriRoodt in Rari Foundation

Posts by WildriRoodt

• RRC-22 DAO Treasury Diversification Plan - Updated by WildriRoodt - No Role
  Posted on: May 14, 2024, 6:18 a.m.
  Content: Thank you for the comment @Sixty. As mentioned in the proposal, we are contracted directly with other Foundation companies in providing day to day administrative services, rather than through a publicly executed proposals and as such there is contracted terms where names cannot be disclosed, however these Foundation’s cover a wide variety of industries including: L 2 ’s, borrowing and lending protocols, gaming, DePIN, LRT’s and other. The Foundation’s operational budget for 2024 was estimated at $ 1 . 65 million. Refer to the proposal here: Tally | Rari DAO Proposal. A proposal is submitted every year for that specific year’s expenses. Treasury diversification would help the DAO manage its current treasury to ensure that a downturn in market prices does impact the DAO treasury in a significant way and will ensure that the DAO will be able to fund future operational budget requests. Yes the only amount that will be directed towards this effort will be the RARI 1 , 564 , 216 , apologies for the confusion.
  Likes: 2 Replies: 1
  Likers: sixty, jaf
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  • Sixty: Thanks for the clarifications! I look forward to seeing progress made in the RARI treasury diversification efforts.
• RRC-22 DAO Treasury Diversification Plan - Updated by WildriRoodt - No Role
  Posted on: May 14, 2024, 6:02 a.m.
  Content: Thank you @Firefly 808 for the suggestion. We will definitely consider all options and will take this suggestion into consideration when exploring further yield generating products.
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• RRC-22 DAO Treasury Diversification Plan - Updated by WildriRoodt - No Role
  Posted on: April 24, 2024, 2:06 p.m.
  Content: Hi @jengajojo, thank you for your comments and thoughts. Always appreciate it. On the yield sources: We can definitely look at different yield sources as well if that is preferred, but from our experience these work really well and are currently the most popular/battle tested sources institutions and foundations go for. There are also legal considerations the Foundation will need to assess when depositing funds into smart contracts with protocols which makes this a more time consuming process. Re: Quarterly reports: Noted and this will be worked on and provided to the community. Thanks for the point.”
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• RRC-22 DAO Treasury Diversification Plan - Updated by WildriRoodt - No Role
  Posted on: April 24, 2024, noon
  Content: Hey @lionmsee , thanks for the comment and support. There was also a comment from a community member in the original proposal for allocation of stables between 20 % and 30 %, and thus we thought 25 % is a reasonable middle ground as it is a significant increase from the original 10 % proposed and still on the higher end of the scales with regards to the proposed percentages by insider 0 x.
  Likes: 1 Replies: 1
  Likers: lionmsee
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  • lionmsee: Okay now I understand it well, thank you!
• RRC-22 DAO Treasury Diversification Plan - Updated by WildriRoodt - No Role
  Posted on: April 24, 2024, 11:46 a.m.
  Content: Hey @AlexQ , thank you for the comment. Yes we agree 100 %. And we have more included 12 months in the proposal to ensure there is enough time included, but in essence we will be selling more during peak volumes (crypto summer) and thus expecting that we should finalize the swapping RARI to stables in a few months if the current volume continues. One of our main focus areas is also just to be mindful of the price impact and thus we work with our OTC partners to determine a selling strategy that does not negatively impact the price. And good point on the buying back of tokens during crypto winter - this will be considered.
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  Likers: alexq
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• RRC-22 DAO Treasury Diversification Plan - Updated by WildriRoodt - No Role
  Posted on: April 19, 2024, 5:08 p.m.
  Content: Author: Autonomous Reviewer: Addie Giese Abstract: This proposal outlines the updated treasury diversification plan for the DAO aimed at strengthening its financial position and fostering sustainable growth. The plan involves reallocating a portion of the treasury into stablecoins and generating yield through safe investment vehicles, facilitated by the Rari Foundation. Rationale: Diversifying the DAO’s treasury mitigates exposure to market volatility and enhances financial resilience. By allocating funds into stablecoins and yield-generating strategies, the DAO can optimize returns while minimizing risk, ensuring a solid foundation for future initiatives. Motivation: The motivation behind this proposal is to secure the DAO’s financial stability and flexibility. Through strategic diversification and prudent investment, the DAO aims to generate additional income, reduce reliance on volatile assets, and position itself for long-term sustainability by ensuring at least a 4 year cash runway target. Steps to Implement: Foundation Facilitation: The Rari Foundation will execute treasury diversification on behalf of the DAO using its strategic partnerships. Stablecoin Allocation: Swap 25 % of the DAO treasury (excluding the Legacy treasury) into stablecoins over the next 12 months, utilizing the Foundation’s OTC partners and on/off-ramp solutions. Larger deals with institutions can also be considered on a case by case basis to assist with this process. The total tokens that will be swapped is RARI 1 , 564 , 216 ( 25 % of DAO treasury). The total quantity of stablecoins to be received will vary depending on the token price, but the strategy will include a VWAP as well as a floor price over a set period. Yield Generation: Invest stablecoins in carefully selected, well-researched on-chain and off-chain yield-generating vehicles to maximize returns while prioritizing security, risk mitigation and transparency. The majority of the stablecoins will be included in on-chain yield generating vehicles to ensure transparency, but off-chain vehicles will be used as supplemental. Refer to below pros and cons to note why a mix of both on-chain and off-chain solutions are important. On-chain pros: Transactions and investment holdings are transparent, immutable and secure. All transactions can be seen in an instant by all community participants. On-chain cons: Transaction fees can be costly, smart contract risks and track record not as mature as for traditional investments. Off-chain pros: Ensures diversification from on-chain investments and reduces smart contract risks. Longer proven track record. Reduced transaction fees. Off-chain cons: Less transparency and timely process. Yield generating strategies can include for example some of the below: Ondo - Yield generation 1 (On-chain) Franklin Templeton - Yield generation (Off-chain) Risk Management: Conduct thorough due diligence in selecting stablecoins and yield-generating options. Monitor market conditions and adjust the allocation strategy as needed. Transparency and Accountability: Regularly communicate diversification progress and yield generated to the DAO community. Establish a transparent reporting mechanism for the Foundation’s execution on behalf of the DAO. Parameters None of the investments to be locked for more than 12 months Vehicles used will have no early liquidation fees Funds can be requested from the DAO if needed Examples Treasury diversification is considered a prudent strategy in the ecosystem Arbitrum Gitcoin Timeline: Commence the treasury diversification process immediately, with the goal of completing the 25 % stablecoin allocation within the next 12 months. Experience on Treasury diversification plans: Autonomous works on various Foundation’s treasury diversification strategies, as we are contracted directly with the Foundations in providing day to day administrative services, rather than through a publicly executed proposal. These strategies are discussed with the Foundation team members and approved by the Board of Directors and then executed by us to ensure the Foundations have a sustainable cash runway for future expenses. We have been delivering these services for various Foundation companies since 2022 through our experienced team of professionals. Refer to our website for more information on our team and services: https://autonomousprojects.co/ 1 Budget: The budget for this proposal includes the costs associated with executing the treasury diversification plan, such as fees for OTC trades and potential investment expenses. Conclusion: By entrusting the Rari Foundation to execute this treasury diversification plan, the DAO aims to optimize its financial holdings, reduce risk, and ensure a solid foundation for future initiatives. This strategic approach aligns with the DAO’s commitment to responsible financial management and transparency.
  Likes: 5 Replies: 2
  Likers: jaf, lionmsee, alexq, bitblondy, sixty
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  • jengajojo: Thank you for the update @WildriRoodt Appreciate the inclusion of exact figures WildriRoodt: RARI 1,564,216 (25% of DAO treasury) Both of these suggested yield sources seem to be much lower than direct onchain sources of yield offered by far more battletested contracts on AAVE or Maker. Will only these two sources be considered or will there be more? WildriRoodt: Yield generating strategies can include for example some of the below: Ondo - Yield generation (On-chain) Franklin Templeton - Yield generation (Off-chain) I’d also appreciate some specific transparency deliverables (such as a quarterly report) to keep the DAO updated on the state of this swaps and the generated yield, that would be awesome! WildriRoodt: Establish a transparent reporting mechanism for the Foundation’s execution on behalf of the DAO.
  • Sixty: WildriRoodt: Experience on Treasury diversification plans: Autonomous works on various Foundation’s treasury diversification strategies, as we are contracted directly with the Foundations in providing day to day administrative services, rather than through a publicly executed proposal. These strategies are discussed with the Foundation team members and approved by the Board of Directors and then executed by us to ensure the Foundations have a sustainable cash runway for future expenses. We have been delivering these services for various Foundation companies since 2022 through our experienced team of professionals. Refer to our website for more information on our team and services: https://autonomousprojects.co/ Hey @WildriRoodt, can you provide the community with previous examples of managing a treasury diversification effort for a DAO similar to the RARI Foundation? WildriRoodt: Through strategic diversification and prudent investment, the DAO aims to generate additional income, reduce reliance on volatile assets, and position itself for long-term sustainability by ensuring at least a 4 year cash runway target. I’m not a frequent visitor to this forum, so I am curious about the current yearly spending of the DAO and what the current runway looks like. How would treasury diversification improve this number? WildriRoodt: Budget: The budget for this proposal includes the costs associated with executing the treasury diversification plan, such as fees for OTC trades and potential investment expenses. The ask here is not very clear. Is the only amount that will be directed towards this effort the 1,564,216 RARI mentioned above, or will there be additional costs that are not highlighted in this proposal?
• RRC-22 DAO Treasury Diversification Plan by WildriRoodt - No Role
  Posted on: April 18, 2024, 11:20 a.m.
  Content: Thank you for the comment and feedback @insider 0 x . Noted on increasing the exposure of stables and this will be increased in the updated proposal. The diversification process can definitely include opportunity for larger deals with discounts and lock-ups and each deal will have to be assessed based on the terms of the lockup and discounts. We will include this in the updated version. Thank you for the questions @Sixty . Research is in progress to get the best and most secure yield generation strategies (like the Franklin Templeton tokenized fund which is offchain) but more information can be presented once this is finalised including on-chain strategies. The intention will be to deploy most of the stablecoins to the yield generating asset vehicles (for instance 90 %). 10 % can be kept in stables for emergencies, but the 90 % which is included in the vehicles will be able to access within a short period. @bitblondy , thank you for your comments. On the yield generating, we will only utilize very low risk asset vehicles which also returns a reasonable yield. And the plan is more to diversify into stables to ensure diversification of assets and to also ensure sustainable growth for the next few years.
  Likes: 1 Replies: 1
  Likers: bitblondy
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  • bitblondy: Alright, thanks for the update @WildriRoodt
• RRC-22 DAO Treasury Diversification Plan by WildriRoodt - No Role
  Posted on: April 18, 2024, 11:16 a.m.
  Content: Thank you for your comment @Jaf. We have addressed @jengajojo 's comment and will provide updated information in the updated forum proposal.
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• RRC-22 DAO Treasury Diversification Plan by WildriRoodt - No Role
  Posted on: April 18, 2024, 11:14 a.m.
  Content: Thank you for the comments and feedback @jengajojo. Please see below responses: Yes the plan is to increase stables to 20 %. The 10 % that was mentioned in the comment related to the Foundation’s Operational budget which is used for operational payments in 2024 and thus is excluded from the above strategy (Thus basically still 10 %, but in the updated proposal we will increase the % based on discussions in the community call). On the exact number of tokens that will be swapped, we will include it in the final proposal and will be a percentage of the DAO treasury. The exact number of tokens to be received will vary depending on the token price, but conservative estimates can be given closer to the time We are looking into on-chain yield opportunities as per discussions in the call and will give feedback on those.
  Likes: 1 Replies: 0
  Likers: bitblondy
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• RRC 20 - Utilization of 2023 Budget Surplus by WildriRoodt - No Role
  Posted on: March 11, 2024, 9:22 a.m.
  Content: Noted thanks for the comment @bitblondy. We will certainly look into it.
  Likes: 1 Replies: 0
  Likers: bitblondy
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