PIP 5: ePHTR as a Treasury Management tool

Basic Information

Name of Proposal: ePHTR as a Treasury Management tool

Creator/s Name + Telegram/Discord ID’s: @flymaster29

Discord Link to Conversations related to the proposal: https://discord.com/channels/727105266256183376/934327748300779590

Creation Date: Jan 21st, 2022

What’s needed (financial, additional help, please specify): dedication

Proposal goal

  • PHTR deposited into ePHTR contract can be deployed via DAO
  • Make ePHTR the only incentive PHTR deposit contract. (of course when PHTR is very valuable other projects will probably incentivize it.) - this means we do not give PHTR on PHTR anywhere else. Reason for this is to make it so that every investor of phuture understands that the ideal place to put your future is into ePHTR.
  • Of course we can continue to incentivize non-phtr tokens, such as indices with PHTR.

Current challenges this solves

Last year I was in the Bancor forums and community calls, asking about the discrepancies in yield for participants of BNT stakers, so while BNT is fungible, some was making more yield than another, because each pool had its own APR, which felt kind of jaded - of course behind the scenes they were already thinking of how to solve that, and so in v3 they have a single pool for BNT stakers, and that BNT will be dynamically allocated while everyone gets a single Yield.

The proposal plans to adopt the same methodology, by allowing all participants to pick a single destination to stake their Phuture and allow the DAO to deploy it where it’s most useful. This would also make it so that the only real token that needs to be deposited into user’s wallets (dex/cex) is ePHTR - will be more possible as CEX starts to offer staking of defi tokens , with PHTR keeping its purpose as a utility token. This allows for more capital efficiency.

Also, one of the reasons for this is, when we partner with projects we know exactly how much PHTR we can allocate based on funds in the contract, and when incentives are paid in other project tokens, that will immediately be added to our treasury. A big goal of ours should be to have non-phtr assets.

Also this negates the need to utilize Bancor’s SuperFluidLiquidity (or any other project, where “extra” phtr might be held), since I do believe that as a project we should not deploy more capital that what’s necessary, and any “additional” tokens is an investor of phuture that should directly stake it in ePHTR instead. - also gets rid of additional 3rd party risk. Nice thing with Bancor is now that will be protocol owned liquidity with no IL

----------------------I Was going to remove this, but kept here,not advised…lol ---------------------

However, a big caveat is that if we do indeed want to move operations to Bancor for this proposal we could [if we wanted to not deploy or upgrade ePHTR contract ourselves] We could use the Bancor LP token (although I think that would be more confusing, however it would work) - the voting would just be “How to deploy SuperFluidLiquidity” the thing is not sure how much development work is required on Bancor end, if we wanted to deploy the future to somewhere other than ePHTR (which then made me think, also another reason not too, since we can just start with ePHTR

-----------------------------------------------------END--------------------------------------------------------------

Execution plan

Begin to utilize the ePHTR contract, as more of a treasury management system. Then we would start having regular snapshot proposals on how to best use the funds [Provide single sided staking on Bancor, Deploy Incentive on another Blockchain, Rewards Index competition, Give Grants, etc] . This method may also sound very similar to the OHM projects of defi, what they do is collect capital and deploy it to gain the most yield for the community.

There would need to be a buffer PHTR balance in the contract to allow for withdrawals, but we could also create a queue system (maybe 7 day notice) that would ensure enough PHTR is available for the next withdrawal. Or we could even deploy a system that ePHTR becomes available over a vesting period (for more yield - if we so choose)

We would also need to look into how much APR/APY we want to target for ePHTR, and of course it can also vary depending on revenue. Ex: base 5% inflation + 5% because of revenue, etc.

Conclusion

Hopefully you all understand the importance of this proposal in making sure all PHTR holders know exactly where to place their bag for Yield, and will not have to feel left out because they did not want to risk being in a LP, moving tokens to another chain to get more on their PHTR, etc.

This is a Work in Progress, pleave give 2 cents below. Although I do want to start getting this into motion if we believe it will do the most good, especially since things are beginning to ramp up.