[BIP-714] Allocate 250,000 USDT to sGYD

General Chat Karpatkey Updates
1

PR with payload

Summary

This proposal seeks approval from the BalancerDAO to allocate 250,000 USDT, currently sitting idle in the DAO’s main multisig wallet following the termination of the Fjord fee share agreement, to the karpatkey-managed SAFE. These funds will be used to acquire the GYD stablecoin, issued by Gyroscope. Once acquired, the GYD will be staked to convert into sGYD, unlocking yield-generating opportunities for the DAO’s treasury. For more in-depth information, please refer to the original post submitted by @FTL_Labs.

By approving this proposal, the BalancerDAO will tap into a new yield-bearing strategy for its treasury, enhancing capital efficiency and diversifying stablecoin holdings. Moreover, this move will strengthen Balancer’s support for a key ecosystem partner, Gyroscope. Gyroscope pools (E-CLPs) have demonstrated strong performance, contributing 8.81% ofBalancer’s volume with only 4.54% of its total TVL.

Motivation

While the rationale behind this proposal is covered extensively in FTL Labs’ original post, this document covers the implementation details and requests the DAO’s approval for new permissions to be granted to the Manager SAFE owned by karpatkey, allowing for the seamless integration of this new position into the managed portfolio.

Permissions to be added to the Manager policy

Once the 250,000 USDT is transferred to the karpatkey-managed SAFE, karpatkey will swap it for GYD on CowSwap and subsequently stake the acquired GYD on Gyroscope. Additionally, karpatkey will integrate the relevant metrics into its risk management framework to effectively monitor the position and respond swiftly to any market downturns or unforeseen events. Backup permissions for swaps on Balancer and Spark will also be added to enhance flexibility.

Permissions to be added in this Proposal:

  1. Swap on CowSwap:
    1. Tokens IN: DAI, GYD, sDAI, USDC, USDT, GHO
    2. Tokens OUT: DAI, GYD, sDAI, USDC, USDT, GHO
  2. Stake/Unstake (Deposit/Withdraw) GYD on Gyroscope.
  3. Swap on Balancer:
    3. USDT ⇄ GYD
    4. sDAI ⇄ GYD
    5. sDAI ⇄ GYD (different pool)
    6. USDC ⇄ GYD
    7. GHO ⇄ GYD
  4. Convert DAI ⇄ sDAI on Spark
    8. sDAI ⇄ DAI

Permissions page: https://roles.gnosisguild.org/permissions/eth/Frx9NSvHOTEV4Cgr33W9wKHEvM7CBztRwtFmH1WzrEc
Permissions diff page: https://roles.gnosisguild.org/eth:0x13c61a25DB73e7a94a244bD2205aDba8b4a60F4a/roles/MANAGER/diff/Frx9NSvHOTEV4Cgr33W9wKHEvM7CBztRwtFmH1WzrEc?annotations=false

Specification

The Balancer DAO Main Multisig 0x10a19e7ee7d7f8a52822f6817de8ea18204f2e4f will interact with the USDT contract at 0xdAC17F958D2ee523a2206206994597C13D831ec7 and call the transfer function. The recipient address will be the karpatkey-managed SAFE 0x0efccbb9e2c09ea29551879bd9da32362b32fc89, with a value of 250000000000 (equivalent to 250,000 USDT).

Tenderly simulation.

Additionally, the karpatkey-managed SAFE owned by the BalancerDAO will execute the required payload to grant karpatkey the permissions outlined in this proposal.

Tenderly Simulation.

3 Likes
2

Thanks for the proposal! I am in full support given the discussions we had in the temp check. Great to see this idea come to fruition and idle treasury assets being utilized.

5 Likes
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i did a thorough review of the permissions diff, here are the additions i found:

  • gho.approve(balancervault OR cowrelayer)
  • dai.approve(sdai)
  • sdai.approve(balancervault OR cowrelayer)
  • sdai.deposit(*, avatar)
  • sdai.withdraw(*, avatar, avatar)
  • sdai.redeem(*, avatar, avatar)
  • usdc.approve(balancervault)
  • balancervault.swap()
    • sdai<>gyd
    • sdai<>gyd
    • gho<>gyd
    • usdc<>gyd
    • usdt<>gyd
  • uniswapnft.refundeth()
  • usdt.approve(balancervault)
  • gyd.approve(balancervault OR cowrelayer)
  • sgyd.deposit(*, avatar)
  • sgyd.redeem(*, avatar, avatar)

this reflects the summary given by @karpatkey with the exception of some approvals and the refundEth() call, which are all safe and required.

lgtm

3 Likes
4

https://snapshot.org/#/balancer.eth/proposal/0x33a8878f7747e4804b18e9363ba3f1bbc7d2a8b9a79e34ab1be5157e5d542c83

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As part of karpatkey’s commitment to transparency, we’d like to update the community on the execution of the proposal.

Following a careful risk assessment, our team raised a few security-related questions regarding the Gyroscope Savings Gyro Dollar (sGYD) smart contract with the Gyroscope team. Although we do believe these have a non-critical impact, we are delaying the allocation while we await further clarity.

We remain positive about the resolution of these questions, the Gyroscope team, and we will continue to keep sGYD on our whitelist. In the meantime, and to maintain utilisation, we will deploy the capital into Balancer Treasury’s regular stablecoin yield generation strategies. Upon resolution, we will provide an update and allocate to sGYD as planned.

For any questions, feel free to share them here or reach out directly to karpatkey.

2 Likes