Proposal
Buy 4 million REN using KeeperDAO Treasury funds and subsequently run 40 Dark Nodes with said REN. The yield earned at the end of each epoch will be used to buy more REN to create additional Dark Nodes.
Motivation
We propose this acquisition in the interest of building a revenue stream that will bolster our ability to continue funding development during MEV barren periods of the ETH network. Furthermore, for broader strategic implications discussed below, we seek to reinforce this revenue stream with a continual increase of Dark Node market share through yield reinvestment.
Background
Our current Keeper Bot uses funds locked in the LP to extract MEV. In the interest of maintaining its efficacy, we believe that it is best practice to use only the funds outside the LP for strategic acquisitions, barring any proposal whose specification may require otherwise.
Currently, we have ~33 million dollars of these assets in the KeeperDAO Treasury as follows:
Asset | Quantity | Value |
---|---|---|
ETH | 3,825.96 | ~$15,789,183 |
WETH | 1313.86 | ~$5,421,298 |
USDC | 8,869,686.11 | ~$8,869,686 |
DAI | 3,285,917.69 | ~$3,285,917 |
Total | ~$33,366,085 |
Why Ren?
The Ren project is well-positioned as a “universal” liquidity source to provide wrap-less interaction between blockchains. Bridging crypto assets from one blockchain to another represents a tap into a large volume of ecosystem protocol usage and exposes KeeperDAO indirectly to a wide variety of decentralized exchanges. Here, interoperability represents stability and efficiency.
Looking to the near future, with the maturity of the RenVM the project will develop into an L1 where new applications can make use of programmable cryptography and live on multiple chains simultaneously, and have a compounding effect on dark node demand.
Specification
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The core team manually claims yield at the end of each epoch
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The choice of Dark Node VPS Provider is at the core team’s discretion
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Ren acquisition method is at the core team’s discretion
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If Dark Node APY is below 8% for a period longer than 3 months, a KIP will be drafted suggesting liquidating our REN position.
Limitations
The difference in market share for WBTC over renBTC could continue to expand, decreasing dark node yield. This is rectified by the existence of other ren-based assets to offset this difference in market share and offer attractive dark node yields. In the event of a crypto bear market, network activity of all blockchains has historically dropped significantly, this would make dark node yields negligible compared to this purchase. Standard smart contract risks
Authors: Curmudgeon, trepe, YungPeso, Barry
- 1 million REN (10 DN)
- 2 Million REN (20 DN)
- 4 Million REN (40 DN)
- 5 Million REN (50 DN)
0 voters