There are some significant changes compared to the last funding proposal and I welcome community feedback as always.
Now that the treasury has a healthier supply of stablecoins and the DAO’s ongoing stablecoin costs look to be significantly lower in Year 2 I think it’s prudent to start paying the liquid portion of salaries in USDC. Thus the breakdown below will look a bit different from last quarter.
We’ll also be discontinuing Coordinape and adopting a bounty board for community contributors (this is based on feedback from the community and contributors themselves). We will share our learnings from our Coordinape experience soon. Previously 5000 BAL per month or $33,750 was allocated towards this, using last quarter’s BAL price of $6.75.
10,000 USDC per month will be allocated toward the community bounty board. This is expected to compensate regular contributors with clear roles like Cosme, Gleb, and Dubstard for their ongoing work while allowing the opportunity for others to also pick up tasks. The Maxis will own the setup and management of this board and also provide a report on the spend in the monthly forum update.
Previously we requested 8550 BAL per month for salaries or $57,712. For Q3 we request 31,210 in USDC and 8475 in BAL per month or $68,500. The increase is driven by two factors:
- Tritium’s salary is increasing a little over $5k vs last quarter - this better reflects a market salary for his skill set and his growing importance to the various operations of Maxis.
- To partially make up for the loss of Coordinape each Maxi was given an additional 200 BAL or 1000 USDC (aside from Tritium)
This does mean each Maxi aside from Tritium is taking an effective pay cut as average Coordinape rewards per person exceeded the above figures. I believe this is prudent given the challenging market conditions where we must be trimming costs as much as we can.
Last quarter we asked for 1500 BAL for dev bounties. 875 BAL of that was spent, the details of which you can find in the below table. From this the Maxis have decided to pursue a retainer for Shakotan in the amount of 3000 USDC per month and 600 BAL to be max locked for the quarter. He will continue assisting us in our various Github repos to ensure our automated processes work as reliably and accurately as possible.
Finally, we’ll ask for an additional 20 ETH from the treasury for gas expenses. You can check out this dashboard we commissioned to track gas spending. This may require supplemental funding during the quarter depending on ETH gas prices and if gas intensive activities increase, such as poking additional layer zero cross chain rate providers.
Service Provider Name: Balancer Maxis
Leader(s): Solarcurve, joined by the returning cast of Mike B, Zekraken, Xeonus, Zen Dragon, Danko, and Tritium.
Pledge to abide by the DAO’s Code of Conduct (or link to your own): Yes
Pledge to abide by the Accountability Guidelines: Yes
Domains of Operation + Key Objectives & Success Metrics:
As Balancer pursues its path for further decentralization, the Balancer Maxis workgroup presents community contributors aligned with the protocol’s future and long-term sustainability. Whether proposing and executing innovative ideas, or protecting the interests of the ecosystem and helping third-party projects, Maxis have proven to be a key component of Balancer.
Our Q3 proposal is effectively asking veBAL Governance the continuation of this decentralized collaboration group, and reading on previous Q2 funding post might bring some additional context to the present proposal.The following will be kept brief and at a high level. More granular metrics can be found in our monthly updates for April, May, and June.
- Linear (boosted) pool settings
- Swap fee and amplification adjustments
- Adding newly approved gauges to veBAL
- Adding new reward tokens to gauges
- Withdrawing and distributing protocol fees
- Verifying and queuing all transactions before execution by the DAO Multisig
- Together with Balancer Labs we operate the Emergency subDAO Multisig
These are some of the basic functions required to ensure smooth operation of the Balancer Protocol for all its end users. We believe the best metric for success is that most users are not even aware that these tasks exist – they simply observe a new gauge being approved by voters then appearing on the voting list or find protocol fees in the claim section every week, etc. Maxis ensure that the various multisigs and their relevant functions are used properly and promptly, and all transactions are verified for accuracy by at least two people.
- We act as verifiers of last resort for BIPs that require on-chain execution and we post BIPs ready for a vote on snapshot - though anyone with 200k veBAL can also post to snapshot.
- Active participants in Discord and the Forum on governance topics
- Several of us are delegates
- Advise projects on Balancer’s governance process
- Manage admin of the Governance Forum
- We will pursue various strategic initiatives (such as BIP-19) at our discretion, either individually or as a group.
Automation and Tooling
- We work with Mimic to sweep and process our collected fees into USDC.
- We run scripts that collect data and redirect fees to vote markets for veBAL holders to collect with their votes.
- We build, deploy and fund [Chainlink Automation Upkeeps](multisig-ops/chainlink_keepers at main · BalancerMaxis/multisig-ops · GitHub) which handle regular operations for veBAL, and incentive management for our strategic partners.
- We continue to develop more reporting to help validate and verify submitted multisig payloads.
- We track and organize governance operations through the transparent and open Balancer Multisig Operations repository.
- We build and maintain internal tooling complex and common tasks such as pool creation and linear pool management.These tools are not polished/require some knowledge to operate, but we share them with some support in our bizdev and community support conversations.
- Members of the Maxis, often supported by external grants, build and maintain analytics for the Balancer ecosystem.
Maxis spend a good deal of time developing and conducting operational processes to keep fees flowing and governance systems operational and accurate. In 2023 we have started flexing our coding skills more and working to automate governance and partner liquidity management support operations in ways that are more “no-stop” and permissionless when possible.
- We manage Balancer’s Discord and ensure questions or concerns are addressed
- Help projects use Balancer by offering advice or answering questions
- We often deploy new pools for other projects
- Whitelisting and maintaining token lists
- We help with UI testing for Balancer
- Seek out new opportunities to apply Balancer’s technology, primarily in the DeFi realm
- Manage relationships with partners across the entire lifecycle from initial conversations to implementation to final results
- Coordinate partner needs with other teams in the Balancer ecosystem, e.g. integrations.
Maxis took the lead on partnerships in the Balancer ecosystem during Q4 2022 after the biz dev team at Orb was dissolved. The primary near term goals are expanding boosted pool offerings focused primarily on Aave v3, encouraging adoption of ve80/20 or similar systems, making Balancer the hub of LST liquidity, and increasing utilization of the veBAL flywheel (projects bribing, parking POL, etc). Generally we believe Balancer has made solid progress over the last few months on these initiatives.
- We manage a bounty board, open to community contribution
- Onboarding framework for new contributors
- Discord moderation and security
- First responders to user support
- Bridging the community inquires to other Service Providers
This quarter’s proposal represents a big shift from the framework inherited from the Ops subDAO and the Coordinape reward system. Having an open community for new contributors wanting to join the Balancer ecosystem is a great concern for us. However, we have learned that bounties can attract higher quality and project-oriented contributors that might be more likely to be retained. Soon we will share more about our experience using Coordinape.
This new approach will allow the community’s marketing efforts currently under the Maxis to be handed out to Beethoven’s team plans for community developments.
The legacy onboarding program will still be running, reaching every applicant through discovery calls to help contributors understand the DAO operating framework (BIP-1) and set in motion their ideas for Balancer.
- Lead weekly meetings with team leads across the ecosystem to align on projects in flight
- Be the driving force behind the ecosystem’s top roadmap priorities and be accountable for their delivery
- Track project dependencies across the teams and coordinate among relevant parties
Maxis assumed the role of project management for the ecosystem in Q1. We are well positioned for this as we are the point of contact for outside teams & projects and we have established working relationships with all internal teams. Our experience in executing various initiatives in the last 9 months means we have a lot of insight into what it takes to take a project from start to finish.
- We will maintain a notion page detailing the activity of each of our controlled multisigs. Included will be documentation on how to use the powers of the multisig so a future SP can easily take it over in case we are off boarded.
Length of Engagement & Budget:
Budget of 34,210 USDC per month for salaries and 8,475 BAL per month, plus Shakotan’s 600 BAL for the quarter. We also request an additional monthly allocation of 10,000 USDC per month for the bounty board and a quarterly allocation of 20 ETH for gas expenses.
Total for 3 month engagement: 132,630 USDC and 26,025 BAL and 20 ETH (ETH is excluded in the following comparison).
Comparison against last quarter: Using today’s BAL price of $4.4 we’re requesting $247,140 this quarter. Last quarter we requested 42,150 BAL at a price of $6.75 or $284,512. Thus this quarter’s funding proposal represents a reduction in costs of $37,372.
Funds to transfer: 132,630 USDC and 25,400 BAL and 20 ETH (to reflect the unspent 625 BAL from last quarter’s dev bounties)
Impact on the Treasury: The Treasury currently holds ~4.5M BAL. Funding the Balancer Maxis for Q3 would cost around 0.5% of the treasury’s BAL holdings, which annualizes to ~1.5% of the treasury’s BAL. The Treasury currently holds ~4.5M in USDC. Funding the USDC portion would cost around 3% of the treasury’s USDC, which annualizes to ~12%.
ETH Address to Receive Funds: 0x166f54F44F271407f24AA1BE415a730035637325
Link to SLA (if going through the Foundation: N/A