Authors: Harold Hyatt Michael Bland @hal @michael.bland
Introducing the DAO Treasury
In the coming weeks, TrueFi plans to release new lending pools (“Portfolios”) that will enable independent third parties (“Portfolio Managers” or “PMs”) to create custom lending pools. These Portfolios will operate separately from the existing tfLP pools and collect fees on loan origination. This proposal aims to designate a Treasury to collect fees and hold them until a decision by DAO members is made on how to utilize these fees.
The Treasury will be a smart contract that acts as a central collector of fees accrued through the TrueFi protocol. The Treasury will be designed to be compatible with the existing version of TrueFi and future Portfolios. Existing balances in the current Community Treasury wallet will be transferred to the Treasury.
Launching a Treasury to collect fees is a great way to increase value for DAO members. The Treasury can be launched now and funds accrued can be utilized in the future as the protocol evolves. Eventually the Treasury ownership will be transferred to DAO members, thus allowing additional assets to back the value of the TRU token.
Designing the Treasury
Currently there is a “Community Treasury” which is a single wallet holding 5.4M TRU. The Community Treasury would be deprecated in favor of keeping all funds in a single, TrueFi Treasury.
The Treasury can be set up as a Gnosis Safe. The simple purpose of this setup is to hold funds on behalf of DAO members and to provide the Treasury owner control over these funds. A Gnosis Safe has already been set up at 0x2a5c94f3f00db7f11d53d1cfbd9ae8a2bbc7bbf0.
The Treasury will allow for arbitrary ERC-20 token transfers or smart contract calls. As fees are accrued, the Treasury owner decides what to do with these funds. Utilizing the funds could look like ERC-20 transfers (e.x. Increase staking rewards) or token swaps through AMMs (e.x. use fees to buy TRU).
Collecting Fees
All fees earned through Portfolios will be sent to the Treasury. The benefit of having a central Treasury is that the address for paying fees will never have to be changed for Portfolios deployed in current or future versions of TrueFi.
For existing pools, a snapshot vote can be created to determine whether the fees are directed towards the new Treasury or continue to be distributed to stkTRU holders.
Controlling the Treasury
Initially, the Treasury can be owned by a gnosis multisig run by TrustLabs employees on behalf of TrueFi. The owner can be changed in the future to be owned completely by TrueFi DAO members. As the protocol grows it can be decided via snapshot vote or eventually on-chain governance how to use the funds in the Treasury.
Examples of uses include staking rewards, buybacks for TRU stakers, or used for some other purpose approved by DAO members.
Visual Overview:
Proposal:
- Designate 0x2a5c94f3f00db7f11d53d1cfbd9ae8a2bbc7bbf0 as the TrueFi Treasury
- Forward all protocol fees for new Portfolios to the Treasury
- Move all funds in the Community Treasury to the Treasury
- Yes - I support this proposal
- No - This proposal needs to be reworked
- No - I am against this proposal
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