Retroactive Funding Application - Treasury Swarm

Proposal Link: Gardens

Swarm, working group, or contributor name

Treasury :bank:

Who helped with this application?

Description of value created for 1Hive, Jan 1 - April 30, 2022

During the time period of January 1 to April 30 2022:

  • $2,183 xDAI was raised for 1Hive from Treasury Pools (call options), bringing 1Hive’s total stablecoin treasury up to $12,708 xDAI.

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 pay for expenses that would otherwise be paid for in HNY, causing sell pressure on the token.
    • Stablecoins can be used to earn yield for 1Hive, creating another source of revenue.

Description of work completed Jan 1 - April 30, 2022

  • Launched a 2nd round of Treasury Pools:
  • Launched OTC Deals - 1HTV ran a campaign raising stablecoins for their swarm.
  • Currently holding 70 HNY to be deployed on Treasury Pools and/or OTC Deals.

Between January 1, 2022 and April 30, 2022, how much funding did you receive?

  • None - the treasury swarm has worked this year so far only using HNY raised in previous funding proposals in 2021.

Gnosis Safe or Wallet address funds will go to

Treasury Swarm Gnosis Safe: 0x47Aa2DF36e30ADa9f8Ceee54b3C8a60FD4787706

Plans for how funds will be distributed.


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