Treasury Management Fund Proposal: Whitelist Arbitrum and Deploy Arbitrum Multisig

Summary

To address the overall lack of liquidity of TCR token on Arbitrum as well as to make it more attractive for holders and receivers of TCR emissions on Arbitrum, we seek to establish and seed a Arbitrum native TCR Balancer liquidity pool using Treasury Management assets. We expect to direct BAL rewards to this pool through the veBAL we are soon to acquire as part of our months long campaign to establish a foothold in the Balancer veBAL gauge system (as further discussed below). As per the remit of the Treasury Management Fund 3, whitelisting “L1 or L2 chains…for cross chain bridging” of Treasury assets requires approval via Governance Proposal to the DAO. If successful, this proposal will whitelist the Arbitrum chain for various Treasury activities including the deployment of the TCR Balancer pool on Arbitrum to further support the TCR ecosystem and utility of the Arbitrum TCR token.

With Proposal 44, Tracer DAO approved the accumulation of BAL in anticipation of Balancer’s veBAL gauge voting for the purpose of directing BAL rewards to generate yield for the Treasury and to incentivize upcoming V2 perpetual pool liquidity. We currently hold ~150k of BAL/WETH LP, funded with $100k USD of BAL in the secondary market, Ethereum swapped from our yield farming rewards, and the first tranche (30k worth of BAL at time of deposit) of a total $100k USD BAL grant obtained from the Balancer Foundation. Just this week, our proposal to be whitelisted for the acquisition of veBAL was passed via Balancer’s snapshot vote and is expected to be implemented shortly.

By whitelisting Arbitrum for the Treasury Management Fund, we will be able to establish and seed a TCR/DAI or TCR/ETH liquidity pool on Arbitrum and incentivize it with BAL emissions using the veBAL we will soon acquire. This strategy should (i) improve the liquidity of the TCR token on Arbitrum and (ii) generate yield on Treasury assets used to seed the liquidity pool. To the extent that the yield from BAL incentives directed to this pool is attractive to TCR liquidity miners, this should also reduce TCR selling pressure on Arbitrum and help remedy the persistent gap between TCR token price on Arbitrum vs. Ethereum mainnet.


Deliverables

If this proposal is successful, the following deliverables will be executed:

  1. Arbitrum will become ‘whitelisted’ for Treasury activities and custody of assets of the Treasury Management Fund.
  2. A Treasury management multisig will be deployed on Arbitrum

Variation and Termination

If this proposal is successful, the DAO may terminate or vary its engagement in accordance with:

  1. future Proposals and performance; and
  2. the Deliverables specified above.

Conflicts of Interest

In the context of the Tracer project, conflicts of interest include:

  1. Existing Service Providers who are Related Parties; and
  2. Existing (vested and unvested) holdings of TCR tokens.

The following conflicts of interest are declared:

  1. No conflicts of interest to declare.

Interpretation

Unless expressly agreed otherwise in writing by an Authorised Representative of the DAO, all terms that are defined pursuant to the Participation Agreement will retain its meaning.

If this offer is accepted as a Proposal under the Participation Agreement, others may more formally document aspects of that Proposal.

The following definitions shall apply in this Proposal:

Definitions

Commencement Date: the date this Proposal is passed on chain and is signed.

Tracer DAO: A decentralised autonomous organisation for Tracer, an open-sourced blockchain-based financial protocol.

TCR Token: A measure of voting power in the Tracer DAO that attaches to a specific Wallet Address, whereby the greater amount of TCR Tokens a person holds in that Wallet Address, the greater the person’s voting power.

Related party: Means, but is not limited to, the Service Provider’s parent company, subsidiary, affiliate, assignee, transferee or one of their representatives, principals, agents, directors, officers, employees, consultants, contractors, members, shareholders or guarantors.


Copyright Waiver

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

4 Likes

Great way to add utility to Tracer’s Arbitrum ecosystem

2 Likes

This is a sound proposal and I support it.