Authors @Eek637, @Moss and @elisafly from Avantgarde. Avantgarde is ISO27001 certified and the core contributor to the Enzyme protocol. Enzyme has a 4 year track record as the first decentralised asset & treasury management protocol. We also run an on-chain asset management business which currently manages c$30m AUA.
- Strong team with track record of execution (DeFi and TradFi)
- Purpose-built asset management tech with core values of transparency & trustlessness
- We’ll elevate your experience of treasury management via automation and tech
- We’ll align interests wherever possible (eg. DAVI, SWAPR, token swaps, etc)
- Very competitive on fees. No penalties for exit
There is little case for paying someone to manage USDC since yields are too low in this environment. It’s simply not worth the risks. Instead, we propose managing some of the DAO’s ETH and exploring ways to enhance liquidity in DXD to a point where it is liquid enough to have a Chainlink price feed and integrate more natively into the DeFi ecosystem.
Aside from looking for yield (and DAO permitting), we would be interested in building a portfolio that also contributes to the Ethereum network’s decentralisation and security by both investing in a diversified portfolio of liquid staking derivatives and directly staking ETH with a variety of validator service providers.
We would opt to use Enzyme for this mandate. It’s purpose-built protocol for trustless asset management, reporting and risk management unlike any other alternative that exists today.
As part of our investment process we identify risks and indicators that could change the profile of an investment and monitor them rigorously.
Current DAO reporting = take screenshots of a Safe, trust someone to read & copy the contents of that screenshot into a spreadsheet and report on the value of it correctly. No analysis on P&L swings, impermanent loss. Just a basic calculation on yield vs total AUM at the end of a period (= useless).
Instead, we propose leveraging the power of the on-chain asset management ecosystem to query Enzyme’s open source subgraphs for all treasury activity. This becomes very powerful when coupled with a Chainlink price oracle. We refer to this concept as trustless reporting.
We would provide the DxDAO with a dedicated URL where community can openly view performance 24/7 real time with provable human readable historic activity and performance metrics indexed.
Meet the Team
D2D and D2C Alignment
- Legal: Low risk to DAO members since no subset of signers is required to execute.
- DAVI: We’d like to make the DAVI contract natively interoperable with Enzyme. We would likely make a separate grant request for this after scoping.
- SWAPR: We’ll work towards integrating Swapr into Enzyme within 6 months. This can potentially grow TVL & daily active usage.
- Token Swap: Option to coordinate a proposed token swap with Enzyme (MLN).
- ETH strategy: 15% performance fee (based on minimum mandate size that makes sense).
- DXD strategy: Milestone based (decide on KPI’s and incentives separately as this might be broader than a return strategy)
- Termination fees: None, DAO can opt out any time.
Note that fees can be structured differently and can be discussed according to size of mandate
Avantgarde is uniquely positioned to build and scale a fully on-chain investment vehicle for DxDAO which is fully trustless, transparent and non-custodial. It will do this by leveraging the power of the existing on-chain asset management economy. Aside from seeking returns, we’re excited to see how we can further align interest and tackle decentralised DAO infrastructure together.