[GRFC] Whitelist MIM-3CRV Convex Strategy for use in Gro protocol

Title

[GRFC] - Whitelist MIM-3CRV Convex Strategy for use in Gro protocol

Summary

The Gro protocol primarily relies on Convex pool strategies, as outlined in Gro DAO Vote 009. These strategies involve pairing 3CRV with different stablecoins, except for the 3CRV pool itself, which only includes DAI, USDC, and USDT. As a result, each strategy offers complete exposure to the assets in 3CRV along with the additional stablecoin in the pool.

Although MIM did not pass Vote 15b, we have observed positive indications of improved sustainability in MIM’s yield and liquidity over the past 10 months. This suggests a more favorable risk and reward profile for the strategy.

Background

  • In recent weeks, TUSD and OUSD pools have experienced significant concentration, which has raised the risk level for our strategy.
  • Funds continue to be allocated in accordance with the existing framework of (1) pool depth and (2) yield, as set out in the Gro protocol docs
  • Going forward, we will engage in discussions to refine Gro strategy adjustment process, ensuring timely market response and optimal allocation.

MIM description

  • Created by Abracadabra and fully backed by a variety of collateral
  • MIM’s market cap is $103.56m
  • Read more here: https://docs.abracadabra.money/
  • Link to the pool: Curve.fi (pool depth: $83.6m as of 28th June)
  • Current Convex yield is 4.86% (as of 28th June)

What has changed since the last proposal

  • The strategy pool stands out as one of the largest among other 3CRV pools on Convex.
  • The Protocol-owned Liquidity Proposal successfully passed the Vote, contributing to the enhanced stability of the MIM peg.

Submission date and next steps

  • Date of Submission:2023-06-28T00:00:00Z
  • Move proposal to Snapshot if RFC feedback is implemented and there is sufficient support: 2023-07-03T00:00:00Z (at the earliest)

Signalling Vote

Please indicate below whether you are FOR, AGAINST; or have no opinion (ABSTAIN); on this proposal.

  • FOR: Approve the strategy for whitelisting on Gro protocol
  • AGAINST: Do not approve the strategy for whitelisting on Gro protocol
  • ABSTAIN: No opinion on approving this strategy for whitelisting on Gro protocol

0 voters

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Pure noob question:

What does this mean, concentration?

Can you summarize why it did not pass? What are the positive indicators you have mentioned?

Also, how Many votes are needed for sufficient support?

Appreciate you :smiling_face:

re your last question, as agreed by the DAO in Vote 26, the governance process currently requires at least 15 signalling votes before it can be taken to snapshot. The logic here is that the more eyes we get on the RFC’s the more likely a proposal will pass when it is officially voted on. @infinitehomie.eth

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Another question.

What is the input from the FiSt team? @Bernard would have an opinion here i think.

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Indeed, the FiSt pod has created this proposal, and Levi was actively involved during the previous term. The proposal is a significant part of the adjusted risk and rebalancing framework, which aims to formalize Gro DAO’s existing practices in yield strategy allocation. As part of our plan, we intend to support Gro DAO by facilitating the whitelisting of protocols for the Treasury, while also taking a leadership role in Treasury execution.

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