Backing Musicians that Actually Fit in Web3

Hey Mantis, always love hearing your takes and engaging with the DAO, thank you!!. :clap: :slight_smile:

I wanted to comment on the lending APE aspect of your post and not so much on Web3 Musicians. Lending APE has been on my mind since the beginning of the DAO. I put together an early AIP (withdrew because market timing) that would direct APE from the treasury into a Babylon Finance garden (fund) which would collateralize APE and borrow and farm stables against it. When the stable farming strategy ends, it would market buy APE as the reserve asset in the fund, increasing everyone’s share/redemption price.

We went through the AIP process with Cartan and decided that after a year we would just send the earned APE back to one of the treasury wallet addresses as a means to refund the ecosystem fund for further grants, so this is always something to keep in mind. I’ve been following Silo all year since they announced and have been keeping a close eye on it.

One thing to keep in mind is the health of these lending protocols. Silo looks great because everything is isolated by nature, but we ran into problems with the lending protocol Babylon was using, Rari Capital. Long story short, they forked the Compound code which wasn’t designed for isolated lending and they were exploited for $80M. Tribe DAO voted to reimburse everyone (eventually) so everyone was made whole, but it’s still a major consideration for lending assets with low liquidity or easily manipulatable oracle prices.

Anyway, I just wanted to chime in to let you know that collateralizing APE and farming stablecoins for the treasury as a means to continue funding initiatives has been a long time focus of mine since the start of the DAO. There’s a lot happening right now with formalizing working groups, Board member elections, and other administrative tasks to ensure the DAO is set up for success before I want to dive into this deeper.

With the help of another professional Web3 researcher we put together a preliminary risk analysis report for APE that gives us a B, B+ score. We plan to share this report with AAVE, Compound & Euler during the governance process to allow those protocols to list APE, first in isolation mode, then eventually moving to collateral tier. This would allow the DAO to formalize a process for creating DAO native loans. Again, this would require a formal Treasury / RIsk Management working group to oversee these initiatives.

The point of all of this is so we aren’t market selling APE, but are still able to meaningfully fund public goods and DAO initiatives in perpetuity. Not to mention we would be bringing millions in TVL to these protocols, helping to grow DeFi and building healthy money markets for APE. There is also the potential for yield farming incentives depending on the protocol, chain, etc.

I would love to talk more with anyone interested in helping to make this a reality. :slight_smile: Please feel free to send me a message on Discourse and let’s set up a call! Calendly - 0x Amplify

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