Proposal Link: Gardens
Swarm, working group, or contributor name
Who helped with this application?
Description of value created for 1Hive, 18 May - 18 August, 2022
During the time period of 18 May to 18 August:
- $2,641 xDAI was raised for 1Hive from HNY Treasury Pools (call options), HNY OTC Deals, and interest from Agave, bringing 1Hive’s total stablecoin treasury up to $15,449 xDAI.
- The Gardens Swarm used Hedgey’s OTC Deal tool to convert 217 HNY raise from a 1Hive Funding Proposal into $7,812 xDAI, used for Swarm expenses.
- 1HTV used Hedgey’s OTC Deal tool to convert $1k of HNY into xDAI, used for Swarm expenses.
How does the Treasury Swarm create value for 1Hive and Honey?
The goal for the Treasury Swarm is to diversify some of the exposures of HNY in the DAO Treasury. This diversification involves us converting HNY into xDAI in a responsible, transparent manner that benefits both the community and the DAO. Diversification is key for the long term survival of the DAO, so we want to ensure that we are building up stable coin reserves that can be used to pay contributors and other expenses, rather than relying solely on HNY to cover all of the costs, which during down markets will impact the spending power of the DAO.
- Treasury Pools and OTC Sales raise stablecoins for 1Hive with less sell pressure on the HNY token than market selling tokens on an exchange.
- Call options give buyers exposure upside in the price of HNY while only paying a small stablecoin premium. Buyers have the option to exercise options if the price of HNY goes up enough by selling the underlying HNY. Buyers only risk losing the premium they paid for the option, and 1Hive earns those premiums as stablecoins.
- OTC Sales of discounted, time-locked HNY let buyers who intend to hold HNY long term get a discount on their tokens.
- Growing 1Hive’s stablecoin treasury is super beneficial for 1Hive’s financial health.
- Stablecoins make 1Hive more resilient to market downturns that hurt the price of HNY.
- Stablecoins let 1Hive compensate contributors so that they don’t need to sell HNY in order to pay life expenses.
- Stablecoins can be used to earn yield for 1Hive, creating another source of revenue.
Description of work completed 18 May - 18 August, 2022
- Hedgey and the Treasury Swarm worked closely this quarter on the launch of token-gated OTC Deals, which 1Hive used to sell discounted, time-locked HNY to holders of NFBeez and Panvala Stamp NFTs.
- 60 HNY was added to Treasury Pools with an expiration of 20 December, 2022 - all options were sold within a week.
- xDAI held in the Treasury Swarm Gnosis Safe was deposited into Agave and is now earning interest for 1Hive.
Financials - list the following information for the time period 18 May, 2022 to 18 August, 2022
Income and Expenses
None - other than from the Retroactive Funding Pilot, the Treasury Swarm had no income or expenses for the last 3 months. All xDAI raised was backed by HNY initially raised in 2021 funding proposals, and contributors are yet to pay themselves for any Treasury Swarm work.
Treasury Balance Sheet
Tokens held with balance > $30
|Network||Wallet Address||Token Balance||USD Balance|
|Gnosis Chain||0x47Aa2DF36e30ADa9f8Ceee54b3C8a60FD4787706||15,149 agWXDAI||$15,149|
|Gnosis Chain||0x47Aa2DF36e30ADa9f8Ceee54b3C8a60FD4787706||300 WXDAI||$300|
|Gnosis Chain||0x47Aa2DF36e30ADa9f8Ceee54b3C8a60FD4787706||60 HNY||$2,744|
|August||Internal||HNY Funding Proposals for Treasury Diversification||200 HNY|
|September||Internal||HNY Funding Proposals for Treasury Diversification||200 HNY|
|October||Internal||HNY Funding Proposals for Treasury Diversification||200 HNY|
|November||Internal||HNY Funding Proposals for Treasury Diversification||200 HNY|
|December||Internal||HNY Funding Proposals for Treasury Diversification||200 HNY|
|January||Internal||HNY Funding Proposals for Treasury Diversification||200 HNY|
|6-month Total||1,200 HNY|
Gnosis Safe or Wallet address funds will go to.
Gardens Gnosis Safe: 0x47Aa2DF36e30ADa9f8Ceee54b3C8a60FD4787706
Plans for how funds will be distributed.
Coordinape, as we did with the Retroactive Funding Pilot