Should Gnosis DAO diversify its Treasury through $INST Purchase (Strategic Partnership)?

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0 voters

Author: zecoshi
Date: 25/11/24

Summary

This proposal recommends a $5M investment in $INST tokens at a $500M FDV (approximately 1% of total supply) to diversify Gnosis DAO’s treasury and establish a strategic partnership with Instadapp. This collaboration will enhance Gnosis DAO’s presence within the DeFi ecosystem, bring Instadapp’s lending protocol to the Gnosis Chain, and promote integration of Instadapp’s products with Gnosis DAO’s ecosystem (e.g., Metri Wallet, Zeal, Karpatkey, etc…).

Motivation

Instadapp is a prominent DeFi protocol offering composable infrastructure for decentralized finance. By partnering with Instadapp, Gnosis DAO can benefit from:

  1. Diversified Treasury Assets: Expanding Gnosis DAO’s portfolio with $INST, a token tied to a leading DeFi platform with robust utility and upcoming tokenomics reform.

  2. Enhanced DeFi Ecosystem: Attracting new users to Gnosis Chain through Instadapp’s lending protocol and integrations with Gnosis DAO products.

  3. Strategic Synergies: Leveraging Instadapp’s infrastructure to improve Gnosis Chain’s and products appeal and competitiveness in the DeFi space, while aligning governance and operations between the two DAOs.

This partnership will solidify Gnosis DAO’s position as a leader in DeFi innovation and create mutual value by aligning goals and resources.

Specification

This proposal outlines the following key actions:

  1. $INST Token Purchase:
    • Allocate $5M from the Gnosis DAO treasury to purchase $INST tokens at a $500M FDV.
    • Tokens will be vested over one year to ensure alignment and long-term commitment.

  2. Deployment of Instadapp’s Lending Protocol on Gnosis Chain:
    • Gnosis DAO will facilitate and promote the deployment of Instadapp’s lending protocol on Gnosis Chain.

  3. Promotion and Integration:
    • Gnosis DAO will promote Instadapp through its ecosystem partners, including Metri Wallet, Zeal, and Karpatkey.
    • Instadapp will integrate Gnosis Chain and its products (e.g., DAI or Gnosis-native stablecoins) into its platform to foster adoption.

Benefits

  1. Treasury Diversification:
    • By acquiring $INST, Gnosis DAO diversifies its treasury with a valuable DeFi asset while fostering long-term partnerships.

  2. Increased Adoption:
    • Instadapp’s lending protocol and integrations will bring new users, liquidity, and activity to the Gnosis Chain ecosystem.

  3. Ecosystem Growth:
    • The collaboration drives innovation and adoption across both protocols, enhancing their competitiveness in the DeFi market.

Next Steps

  1. Community Feedback:
    • Gather input and suggestions from the Gnosis DAO community during the proposal discussion phase.

  2. Snapshot Vote:
    • Proceed with a snapshot vote to approve the $5M allocation and partnership terms.

  3. Implementation:
    • Upon successful approval, execute the $INST purchase, initiate Instadapp’s deployment on Gnosis Chain, and formalize the collaboration.

Disclaimer

I’m holding GNO and INST token. It’s my first ever proposal on a DAO forum, but I truly think it could align Gnosis DAO with a leading DeFi protocol, creating opportunities for growth and mutual success… Gnosis need a lending platform that can be leveraged for the gnosis chain users, for the studio products and for the spinouts (safe, cow, karpatkey).

If anyone with more experience want to help for this proposal feel free.

1 Like

There seems to be some numbers that say $4m and some that say $5m, what did you have in mind? Also would this at $350m FDV transaction be conducted OTC directly with the team? Liquid markets have INST price much higher than this.

Hi PGov, sorry I forgot to amend all the numbers, it was still at 4 dollars when I was writing the proposal and it switched to 5 when I published.

I think the best would be to do it OTC and negotiate a premium with the instadapp team or instadapp DAO.

Gnosis Dao operations are very compatible with theirs and both parties would benefits from it:

Gnosis chain + Fluid DEX + Lending

COW Swap + Fluid DEX

SAFE + Fluid Lending (+ COW Swap already integrated)

Karpatkey + Fluid Lending

Metri + Fluid lending (+ COW Swap already integrated)