Treasury Management Committee (TMC) Deliberations

Hello Foxes. This is where the newly-minted TMC will list its various decisions and primary discussion points. This could also serve as a good venue for threaded, non-Discord discussions.

Date: 11/18/21

Issue: FEI/FOX liquidity partnership

What was discussed?

The brand-new TMC immediately had an issue to deliberate on: should we engage in a Liquidity program with FEI–and if so, how much FOX should we provide for the initial three-month phase?

All TMC members were in favor of moving forward with this program. Some members voiced concerns that layered risks might present themselves due to the fact that FEI’s proposed implementation relies on both FEI and Ondo. However, the consensus was that these risks have been somewhat mitigated by FEI’s successful navigation of post-launch issues, as well as multiple audits of Ondo from reputable smart contract auditors.

Smart contract insurance was discussed as a possible risk management tool - however, Nexus Mutual does not currently cover FEI or Ondo.

Decision: Yes on moving forward with the program, with an initial outlay of $5 million in FOX.

Date: 11/23/21

Issue: SILO seed investment

What was discussed?

A newer DeFi project called Silo Finance approached us about investing $50,000 USDC as part of what effectively is an early-stage seed round. Given the fact that Silo is taking a unique approach to risk management in a lending protocol context, as well as having won a recent ETHGLOBAL online hackathon, the opportunity appears to offer a compelling high-risk/high-reward setup.

Decision: The TMC voted unanimously to invest $50,000 in Silo Finance. The means by which we’d convert FOX to USDC was not yet determined.

Date: 11/24/21

Issue: Tokemak reactor funding amount

What was discussed?

In the wake of our successful CORE 2 Tokemak Reactor creation, the DAO was left with an important question: how much FOX do we swap for TOKE in order to collateralize our reactor?

Decision: Given the high visibility of the FOX reactor vote, as well as the de-risking offered by the first CORE 1 reactors and the high level of engagement from the Tokemak team, the TMC felt that it was prudent to mirror what most other projects have swapped for reactor creation. Specifically, the committee approved a $3 million swap between FOX and TOKE, to be effected as soon as practical.

Date: 11/30/21

Issue: TOKE staking amount

What was discussed?

Following the funding of ShapeShift’s Tokemak reactor, the DAO treasury gained $3 million in TOKE. A motion was raised to take those tokens in Tokemak in order to a.) earn yield, and b.) act as “liquidity directors,” which indirectly stands to improve the APY of the FOX reactor.

Decision: The TMC voted in favor of staking its $3 million TOKE in Tokemak.