Adding Hedgey into Treasury Management Toolkit

Proposal Title

Hedgey Pilot Program for Treasury

Proposal Information

Proposal description

This proposal is to fund the 1Hive Hedgey pilot program on behalf of the Treasury.

Proposal Rationale

The 1Hive DAO needs treasury management tools that provide longevity and stability to the DAO regardless of market volatility.

Hedgey allows the 1HIVE DAO to sell conditional agreements using HNY. These agreements can generate xDAI revenue for the DAO, as well as diversify the treasury in a transparent way.

Related documents

Expected duration or delivery date

2 to 3 months after initial launch.

Team Information (For Funding Proposals)

Swarm DAO members with equal weight in control of funds:

@DO$H @Paul2

Hedgey Team members with equal weight in control of funds:

@icemanparachute

Funding Information (For Funding Proposals)

Amount of HNY requested:

30HNY

XDAI address where funds shall be transferred:

(Will be putting the XDAI/Hedgey multisig Gnosis account information here

More detailed description of how funds will be handled and used:

HNY in this pilot will be used to create a series of covered calls (conditional agreements) on the Hedgey protocol. These calls will be available for purchase to the general public. Funds will be deployed from the Gnosis safe multi-sig wallet to the Hedgey Protocol. xDAI received from both revenue and token sales will be transferred from the Gnosis multi-sig wallet to the DAO at the conclusion of the pilot.

Note

This is an initial pilot meant to gauge interest and performance of Hedgey within the 1hive community as an ongoing tool. A positive outcome of this pilot will result in additional proposals to use Hedgey as an ongoing portfolio management tool.

6 Likes

Hey Iceman! thanks for taking the time to jump through all our DAO hurdles :heart:. Im really excited about this and looking forward to hearing what the community has to say about it.

1 Like

As a member of Buzz swarm I am excited by this proposal. I think at worst case scenario we spend a few honey and gain some portfolio management tools. At best case scenario our portfolio realizes secure gains instead of gathering dust. AND we can further develop a 1Hive-Hedgey partnership in the most favorable directions. Hedgey Swarm? Gardens? AND Hedgey is already working with Surf.Finance, another new collaborator to 1hive. Lots of bright paths ahead if we give it the space to begin. I support this proposal and will also like to contribute up to five hours a week assisting the project. Thanks for all the great work getting to this point Dosh, Iceman and the rest.

1 Like

Just created the proposal which can be voted on here Honey Pot

1 Like

Seems 30HNY is reasonable for this pilot program and I keep my :+1: for the best results from this.

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Could you elaborate on why 30 HNY is needed for an initial pilot? Why wouldn’t something smaller work?

Additionally, probably best to explicitly state what you consider to be a positive outcome here.

1 Like

30 HNY was proposed as its a relatively small amount in comparison to a larger recurring strategy, but still large enough to help gauge interest and the demand curves. The whole idea is really just to use this as proof of concept and evidence this tool as beneficial to both the bees and the DAO treasury, and use the results and analysis to make a recurring strategy. 30HNY allows us to try a few different sizes, strikes and expiry dates to evaluate what the buy side of the market would like - so that we can formulate a larger ongoing program based on these results.

A positive outcome would be to have all of call contracts are sold, and it would be great too to see them exercised for profits by the buyers (though obviously that cannot be guaranteed). If it turns out that people are only interested in buying one date vs another, or one size or strike vs another, that is also useful information and the hedgey protocol is flexible enough such that the contracts can be changed and molded to what actually has demand.

Its a low risk program in the sense that if nothing is sold, and there is no demand all 30 HNY is just returned back to the treasury (which is the worst outcome), and then essentially there is a scale on the amount of HNY converted to xDAI which is all returned to the treasury. So the treasury will receive back 30 HNY, a mix of HNY and xDAI or all xDAI, depending on the outcomes of how many are sold and how many are exercised before expiration.

5 Likes

Thank you for the clarifications. Happy to add my support

1 Like