P3 - Premia Treasury Management

Premia Publication Process - P3 Discussion
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Hello world !

Summary:

The aim of this proposal is to use PREMIA’s treasury to generate a form of passive income that will benefit the protocol.

Motivation:

At the time of writing, premia has around 12 million ( in eth and usdc) that do nothing and earn nothing. Premia: Multisig | Address 0xc22fae86443aeed038a4ed887bba8f5035fd12f0 | Etherscan

We could use these assets safely and generate a passive revenue stream for the protocol.
We could either directly stake eth or use lsd protocols like lido or frax. Fraxeth yield is currrently around 5% thats 500k per year if we stake with frax.
This money could be used to boost the treasury or even reward VxPremia stakers. In addition to the financial aspect, this could also enable us to build partnerships with ldo or frax, which have a much larger audience than Premia.

Here it is, I’m looking forward to hearing your opinion on the matter, and have a good day/night to you.

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Personally, I could be in favor of using 50% of our ETH for staking (around 3k ETH and 5.8M$ @ current price).

First half on sfrxETH and the other half on stETH. As Horny said this could be set up as a partnership with these protocols. Diversification is important to mitigate slashing or private keys risks.

Another solution could be to run rocket pool nodes for more than 8% APR (+ RPL rewards) with only 8 eth per validator.

Regarding the distribution of rewards I think it would be preferable to redistribute it to vxPremia holders or Pools/Vaults, rather than the team which has other revenue streams via vault/base layer.

I’d be interested to hear the team’s opinion on this proposal and their vision of the use of the treasury over the coming months.

1 Like
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vxPremia holders should be getting multiple fee shares including this from staking. They play an important role in long term sustainability

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I would agree on staking a part of it, probably around 30%-40%. We should not risk more than 50% even do we dont have a return for it. We should have risk management.

However, this could be voted by all the vxPremia holders.