I thought it would be worthwhile to kick-off a conversation about how the DAO manages the ecosystem fund moving forward. As it stands, it’s entirely BAL: this is great in a sustained bull market, but potentially introduces challenges in other market conditions.
Does anyone have any thoughts on whether we should look at diversification (perhaps into also e.g. DAI) in order to reduce volatility? It might also be that some grants might be better suited to rewarding w/ DAI rather than BAL tokens, for example if we want to look at launching a “Balancer Strategies” (an idea I floated on Discord, to review various different approaches to Balancer pools, collect data, do controlled tests & educate the community on how to implement profitable LP strategies in different market conditions & pool types), it might be difficult to find someone with the appropriate data science/maths/stats/finance expertise to commit to working for a fixed term without compensation being at least a significant % in a stablecoin.
UMA’s Range Tokens could also be interesting for this purpose: Treasury Diversification With Range Tokens | by Kevin Chan | UMA Project | Jun, 2021 | Medium
I’m sure there are lots of strong opinions on this topic and it’s generally quite controversial, but in the event of a significant ongoing down market, it could be a major win for Balancer to have some diversification here, as to date very few protocols have taken this step.