GIP-86: Should the GnosisDAO commit to additional rETH usage in treasury operations?

Though the ethos that supports this proposal is widely shared across the community, this proposal may set a dangerous precedent. Optimising exclusively for decentralisation would mean acquiring risk from multiple protocols that might not be as battle-tested, audited or liquid enough to manage.

From a governance perspective, this proposal also conflicts with GIP-58, where karpatkey is granted autonomy and tasked with the responsibility to design overarching strategies that drive treasury risk-adjusted growth and support the DAO’s goals, including the Gnosis Chain development. Having an individual proposal that partially affects the non-custodial treasury management would also misalign the incentives and objectives of the Gnosis-karpatkey partnership, setting the wrong precedence moving forward.

Rocket Pool’s project is noted, and in fact, the DAO holds rETH and provides liquidity in Balancer. We will continue to monitor its performance, security and market conditions for opportunities to reduce risk, support the Ethereum ecosystem, and increase the treasury’s growth (currently, there are 4 rETH for 100 (w)stETH in the market - source: Nansen).

New ideas or perspectives are always welcome, and we encourage you to share them on the treasury forum thread or reach out to us directly through Twitter.

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