MIP 007 - Staking Treasury BPTs


MapleDAO presently holds 100 Balancer Pool Tokens (BPTs), approximately $1M, which are unstaked. These are from seeding the MPL-USDC Balancer Pool with liquidity following May’s LBP. The Treasury is earning no yield on these assets which is suboptimal.

It is proposed that the Treasury should stake the 100 BPTs evenly across the Maven and Orthogonal pools.

This will make the Treasury an active participant in staking on the Maple protocol. It will earn a yield of ~14% in USDC in the Orthogonal Pool and ~11% in USDC in the Maven Pool. Supporting calculations provided here. Note that the Orthogonal yield is higher because the staking reserve is only 6.6% of the Pool Balance, whilst Maven is 8.7%. As the Maven pool increases over the coming weeks, the yield to staking will grow.

In addition to this the Treasury will receive an additional ~10% annualised in MPL rewards, which would be retained by the Treasury. This equates to approximate all-in APYs of 20-25% for the Treasury to stake BPTs it already holds.

Benefits to Maple

  • The Treasury can now earn a yield on BPTs it is already holding
  • It extends Maple’s runway by earning USDC yield and MPL which can remain in Treasury to be used at a later date
  • It demonstrates additional confidence in the underwriting by the Pool Delegates
  • It highlights Maple’s use case as a Treasury management solution for other DAO Treasuries sitting on stables.

Hi Sid!

I fully support this MIP for all the reasons you mention in the proposal. I will add, just for the sake of putting it out there, that it may be valuable to use a small % of the MapleDAO holdings to begin a strategic partnership. There have been some interesting politics play out for protocols that seek a beneficial collateral listing for their governance tokens. Going out and making allies for votes is crucial. It may not be the timing for it, but worth putting out there.

Thanks for all you do!

I agree with this proposal. I think allocating a portion of the treasury to dogfooding the Maple pools is a good idea and can be used to help bootstrap new pools as Maple grows. I agree with Dave that we should diversify the risk of the rest of the treasury into other lower-risk lending platforms.

I misinterpreted this one originally - it’s actually very helpful to LPs. There is some risk to the treasury funds beyond a Compound, etc but I think it’s an excellent way to show confidence int the protocol. Totally for this!

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Great I think in the discord we’ve satisfied the quorum requirements and can look to move forward with implementing the staking.