- The objective of this pilot program is to provide a better understanding through example that DCAing is a better way to execute buy-backs within the treasury.
- Allocate $1M worth of ETH (249.376559 ETH @ $4010 per ETH) towards this buyback program
- Create a 30 days position YFI to ETH within Mean Finance at a rate of 8.31255197 ETH per day
We at Mean Finance would like to engage in a pilot program with Yearn Finance for the treasury management towards a better BABY (Buyback and Build Yearn) program.
As many research studies shows, DCA outperforms more than 90% of the times going all-in into a particular asset (showcase with Ethereum’s native currency $ETH).
On our own, we did research particularly with YFI treasury buybacks from the 2021-Q2 quarterly report and the results are surprisingly positive.
We analyzed 2 scenarios:
1 buy every day for 7 days : replicating the dollar amount bought on the particular buyback day and spreading it evenly over the next 7 days.
BOUGHT AMOUNT (OLD) = 80.61 YFI BOUGHT AMOUNT (NEW) = 85.871605 YFI NET IMPROVEMENT = +6.53%
1 buy every week for 4 weeks : replicating the dollar amount bought on the particular buyback day and spreading it evenly over the next 4 weeks.
BOUGHT AMOUNT (OLD) = 80.61 YFI BOUGHT AMOUNT (NEW) = 83.881440 YFI NET IMPROVEMENT = +4.06%
All the data is available on this spreadsheet:
From Mean, we have been participating in DeFi since the early days and we have seen both from the inside and the outside, how protocols struggle to efficiently manage their huge treasuries. On our team, we are particularly keen with the Yearn community due to its nature (ethos & data driven approach).
That is the reason we believe that this proposal (although from a small team within the ecosystem) will at least have some resounding effects within the community & leadership of the DAO.
We are here to help getting more BABY, let’s procreate and make a larger Yearn ecosystem.
- Mean Finance will deploy its V2 contracts on Ethereum Mainnet and enable a particular subdomain for Yearn’s Multisig that can be integrated on Gnosis Safe (as we are still in beta mode on Optimism, this will be done specifically for Yearn)
- Yearn Finance’s treasury multisig will create a position on the YFI/ETH pair with the following terms:
- Amount: 249.376559 ETH
- Executes: Daily
- Amount of days: 30
- This pilot program would be done with the V2 of the protocol
- Mean V2 has been audited by 2 different companies: Pessimistic and Peckshield
- Mean received $0 in funding since inception, it has been made with a lot of love and dedication from the Mean Team <3
- Yes, I support this proposal
- No, I’m against this proposal