[ Temp Check ] Decentralized Treasury Management Infrastructure: Rethink Finance Proposal & Discussion

Proposals
1

Introduction

Hi Compound community, I’m King from Rethink Finance.

We are an asset management infrastructure provider working with and building on top of Safe Custody Contract, Gnosis Roles Modifier, and Open Zeppelin Governor, to make decentralized and delegated asset management more accessible and power the transition to decentralized and non-custodial asset management.

TL;DR

For DAOs running a multi-sig, it’s a known fact that the process is not only annoying/operationally complex (because you need to coordinate at multiple people for every single action) but also not fully decentralized and will likely be regulated as CASP based on MiCA.

Here’s how we can make DAO treasury management more decentralized, non-custodial, and efficient:
:point_right: Delegated scoped permissions (governed by DAO token or even multisig) for a manager in charge of executing certain transactions on behalf of the DAO
:point_right: Ability to add direct governance execution of transactions or interactions with any protocol (governed by DAO token)
:point_right: Connections with pro asset managers currently managing over $50m in DeFi (mostly for the DAOs’ idle assets)
:point_right: Ability to connect the community with additional capital if you choose to run your own generic strategy

Summary

This post is a temperature check for the Compound community.

We would like to initiate discussion and find ways to make Compound’s treasury management execution more decentralized and efficient.

Status quo is multi-sig. This is not only highly operationally complex (every transaction needs multiple signers, often at the same time), but also not fully decentralized and might even be facing regulatory risks (as CASP based on MiCA).

We are presenting 2 complementary but independent solutions:

  • Decentralized Treasury Management
  • Delegated Asset Management

Details

Decentralized Treasury Management

  1. Rethink Finance would partner with the Compound community, to offer decentralized treasury management infrastructure governed by $COMP token.
  2. $COMP token holders above minimum threshold (TBD) may create proposals on allocating community resources.
  3. $COMP token holders may vote on proposals themselves, or choose to delegate their voting power to trusted delegates (with the possibility to revoke delegation at any time).

Delegated Asset Management

  1. Rethink Finance would partner with the Compound community, to offer its members the infrastructure to spin up multiple on-chain investment vehicles (OIVs).
  2. $COMP token holders may choose to deposit idle assets from the community treasury to OIVs to achieve common goals, while isolating risk.
  3. OIVs may have managers who may execute any transaction (any asset and any protocol on EVM) on behalf of OIV, if they have been granted scoped delegated permissions to do so.
  4. OIVs may be fully governed by $COMP token (token holders may create proposals or delegate voting power to trusted delegates, delegate scoped permissions, and approve valuation methods for OIV positions).
  5. Deposits and redemptions into OIVs are flexible and settled by a manager or through governance. Deposits into OIVs may be open to the wider community or gated by a whitelist.
  6. OIV managers may earn fees (performance, management, deposit, or redemption fees) for their service.

Background

Rethink is a layer that operates on top of Gnosis Safe contract structure, essentially operating as micro DAOs for depositors, where they delegate permissions to the asset managers.

:point_right: Deployers create the fund strategies that people deposit into in the first place.

:point_right: Managers then can make changes to said fund structure, within the parameters agreed upon by depositors.

We utilize technology used by our partners at Karpatkey to manage treasury for Gnosis, Arbitrum, Aave, Lido, ENS and Balancer, making treasury execution more flexible and available to DAOs at large. We are presently talking onboarding with Mantle, Sushi, Stargate, Frax Finance, Radiant Capital, Index Coop, StakeDAO and Umami DAO, with already $1M+ worth of idle treasury assets locked under management.

We would love to have Compound as one of our pioneer adopters and help power the transition to decentralized, trustless, delegated, non-custodial asset management.

Here are our key resources:

Please let us know your thoughts and feedback on this.

2

Currently, there exists a governance infrastructure; Compound uses DAO which allows COMP delegation; proposals that could be initiated by wallets with enough delegated COMP; and a proposal pipeline that can be found here - Compound | Governance