Proposal #15: Maple Pools - Treasury Diversification

Maple Pools - Treasury Diversification

Summary

This proposal relates to Tracer DAO depositing $1.25 million USDC from its treasury into one of Maple Finance’s lending pools, for a 180 day period, to earn interest and Maple tokens (MPL).

Following Tracer DAO’s recent treasury diversification, the DAO received a mixture of $4.5 million USDC and DAI (see Treasury Contract here) - the intended primary use of these funds is to compensate current and future Service Providers (as per the proposal Strategic Treasury Diversification). In the meantime, the DAO can allocate a portion of its treasury to earn yield while they remain unused, as sought by Governor m4ri0ml here.

Maple is an undercollateralized lending protocol for institutional borrowers and provides fixed-income opportunities for lenders.

Maple offers borrowers transparent and efficient financing, entirely on-chain. For lenders, Maple offers a yield through lending to a variety of premium institutions in the blockchain industry including Framework Labs, Wintermute and Amber Group. The Pool Delegates that manage these pools perform diligence and set terms with Borrowers.

The Maple protocol is governed by the MPL token, which enables token holders to participate in governance, share in fee revenues, and stake insurance to Lending Pools.

For more information on Maple, check out its documentation here.


Proposal

This proposal relates to Tracer DAO depositing $1.25 million USDC into one of Maple Finance’s lending pools, on the following terms:

  • The amount would be locked for 180 days;
  • The amount would be applied to fund corporate loans to market makers and market neutral funds;
  • Approximate yield is projected to be approximately 47% APY at total of $70 million USDC capacity and MPL price of $12.2. APY will change as the pool grows so that if the pool reaches $140 million USDC the approximate yield would reduce to approximately 30% APY;
  • Interest, paid in USDC, can be claimed monthly and would be between 9-11% APY. It is proposed that this amount is claimed by Tracer DAO each month and reinvested into the lending pool; and
  • MPL rewards are claimable block by block with no vesting. It is proposed that these tokens are claimed by Tracer DAO each month. Subject to any subsequent proposal of the DAO, it is proposed that the earned MPL tokens be retained in the Tracer DAO Treasury - allowing the DAO to earn establishment fee distributions from the Maple Protocol.

The deposited amount will remain in the pool for the required period of 180 days and will then be returned to the DAO, unless a modifying proposal is executed.


Interpretation

Unless otherwise defined in this offer, all terms beginning with a capital letter which are defined in the Participation Agreement have the same meaning unless the context otherwise requires.


Copyright Waiver

Copyright and related rights to this Proposal are waived pursuant to CC0.

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Hey Tracer community,
The Maple community is excited by potential collaboration with Tracer. We see the pools as an ideal Treasury management solution for DAOs looking to generate yield on their stablecoin funds.

As a Lender on Maple, Tracer DAO would benefit from

  1. attractive stablecoin yield and MPL rewards
  • note that the 180 day lock is planned to be lowered to 90 days next week
  1. credit risk is mitigated in several ways
  • each pool is diversified across multiple institutional borrowers
  • full due diligence is conducted on each borrower, assessing their financials, operational controls and management expertise
  • borrowers are typically market neutral funds and market makers, hence not impacted by the ups and downs of crypto assets
  • the staking reserve provides additional collateralization (currently $2M and growing) for Tracer’s position
  1. Tracer will join many other leading crypto institutions lending in Maple pools, including Coinshares, Blockchain.com, Dragonfly, Spartan and Eden Block among others.

Happy to address any questions or do a call with community members if that would prove helpful.
We hope over time to build a strong relationship between the two DAOs, starting with this use case of a treasury management solution.

4 Likes