Honeypot / Treasury strategy

Hi all,

I’ve not been as active as I should be :flushed:. However, I’m seeing multiple proposals ( CRV, MVI, active NFT trading, NFTX liquidity, Buyback-and-burn, ILV staking ) about the honeypot and I think we need an overall strategy.

All of these ideas have merit and are worth considering, but I think we need to step back.

The Honeypot is a great resource for the DAO, it gives us capital to spend on various initiatives, it can create income, it can pay Bears who contribute, it can be given to others who are working on things we support.

I don’t think that the community has a shared goal at this time (and if we did, it would likely change over time). Some potential goals could be:

  • building a network of friends around the world so we can meet IRL for a coffee.
  • Advocating for relaxation of drug laws.
  • Selling great merchandise
  • Getting hilariously rich due to Bear trading.
  • Donating money to Bear and Bea charities.
  • Grow the adoption of DAO’s and NFT’s

All of these are possible, and we can do all of them to some extent.

What does success look like?

When we look back in 3 years time, what do we want BuzzedBearHideout to look like?

Our vision for the Hideout is a very important consideration when we think about the honeypot.


Personally, I would say at this early stage the treasury should be focused on avoiding losses and growth. Then as income grows (from Bear sales & our investments) we can work out what we spend it on (which will depend on the Bear’s objectives).

So some questions?

  1. What do we want the honeypot to look like in 12 months?
  2. What currency do we want to work in (EUR / USD / ETH / Bears)?
  3. How much time do we want to devote to the honey pot?
  4. How much income do we expect from oncoming Bear sales?

A couple of comments from me:

  • 245 ETH / $750,000 sounds like a lot, but it’s not that much as a long term portfolio for an individual (let alone a DAO).
  • I would suggest that the honey pot should aim to be pretty passive with limited positions (maybe 10 excluding the active NFT vault).

So, how do we approach this?

I would say that the following could work:

  1. Discussion on the short term (6 month) goals of the honey pot. Create a few options passive / active / spending /… and do a snapshot to agree a general strategy.
  2. Once we have an agreed strategy, we can work in the forums to discuss / sentiment poll on different allocations. For example we could be looking at:
  • aa% ETH
  • bb% income-generating ETH
  • cc% Stable coins
  • dd% Passive investments in NFT / metaverse projects
  • ee% Long term investment in blue-chip NFTs (Punks/fractions of BAYC etc)
  • ff% Active NFT trading pool
  • gg% BTC
  • hh% Floor sweeping BuzzedBears for long term reserve
  • ii% Buy Buzzedbear and create NFTX liquidity.
  • jj% seed liquidity for merchandise
  • kk% ETH reserve for paying contributors
  • ll% Donations to charities / gitcoin

There are lots of options! But I think we could come to a consensus in the forum.

  1. Have a snapshot to demonstrate agreement on our approach.

Then we need to work out the details and put them in place.


One final comment; being 100% cold ETH for the next 6 months is a perfectly acceptable strategy. Having an agreement on it will make life easier.

Regards

OA.

13 Likes

Agree, this should be discussed first.
Also to generate “quick response fund” of like 5 eth, with multisig for project creators to cover some unexpected / quickly needed expenses

1 Like

OK, How about some sentiment polls to try and agree on a strategy:

Personally, I’m thinking about what our treasury should look like for next week and in 12 months time.

I’ll create a bunch of pots with the following options. Please pick the option that you think is best for that pool. Also, try and make your options add up to 100% :wink:

We currently have ~245 ETH in the Honeypot, so ~ $800,000 USD.

10% is 24 ETH / $80k

Potential Honey Pots

  1. ETH / income generating ETH
  2. BTC / other L1 coins
  3. Stable coins / income-generating stable coins
  4. Blue chip DeFi tokens ($DPI / AAVE / UNI / COMP)
  5. Smaller / more volatile DeFi ($DEGEN / OHM / …)
  6. DAO tokens (FWB / BANK)
  7. Partner projects (???)
  8. NFT flipping fund
  9. NFT / fractional NFT long term
  10. Metaverse tokens (MVI / ASX / MANA / ILV, YGG, NFTX, MEME, SAND)
  11. Metaverse Land (Decentral land / SAND / …)
  12. Floor sweeping Buzzed bears
  13. Buy and fractionalise Buzzed Bears
  14. Spending reserve (Contributors / charities / public goods / seed funding for merch)

ok?

Options for each
90% (~220 ETH)
80% (~200 ETH)
70% (~172 ETH)
60% (~150 ETH)
50% (~125 ETH)
40% (~100 ETH)
30% (~75 ETH)
25% (~61 ETH)
20% (~50 ETH)
15% (~37 ETH)
10% (~25 ETH)
7.5% (~18 ETH)
5.0% (~12 ETH)
2.5% ( ~6 ETH)
1.0% (~2.5 ETH)
0.5% (~1.2 ETH)
Nada (0)


Here we go:

1. ETH / income generating ETH
  • 90% (~220 ETH)
  • 80% (~200 ETH)
  • 70% (~172 ETH)
  • 60% (~150 ETH)
  • 50% (~125 ETH)
  • 40% (~100 ETH)
  • 30% (~75 ETH)
  • 25% (~61 ETH)
  • 20% (~50 ETH)
  • 15% (~37 ETH)
  • 10% (~25 ETH)
  • 7.5% (~18 ETH)
  • 5.0% (~12 ETH)
  • 2.5% ( ~6 ETH)
  • 1.0% (~2.5 ETH)
  • 0.5% (~1.2 ETH)
  • Nada (0)

0 voters

2. BTC / other L1 coins
  • 90% (~220 ETH)
  • 80% (~200 ETH)
  • 70% (~172 ETH)
  • 60% (~150 ETH)
  • 50% (~125 ETH)
  • 40% (~100 ETH)
  • 30% (~75 ETH)
  • 25% (~61 ETH)
  • 20% (~50 ETH)
  • 15% (~37 ETH)
  • 10% (~25 ETH)
  • 7.5% (~18 ETH)
  • 5.0% (~12 ETH)
  • 2.5% ( ~6 ETH)
  • 1.0% (~2.5 ETH)
  • 0.5% (~1.2 ETH)
  • Nada (0)

0 voters

3. Stable coins / income-generating stable coins
  • 90% (~220 ETH)
  • 80% (~200 ETH)
  • 70% (~172 ETH)
  • 60% (~150 ETH)
  • 50% (~125 ETH)
  • 40% (~100 ETH)
  • 30% (~75 ETH)
  • 25% (~61 ETH)
  • 20% (~50 ETH)
  • 15% (~37 ETH)
  • 10% (~25 ETH)
  • 7.5% (~18 ETH)
  • 5.0% (~12 ETH)
  • 2.5% ( ~6 ETH)
  • 1.0% (~2.5 ETH)
  • 0.5% (~1.2 ETH)
  • Nada (0)

0 voters

4.Blue chip DeFi tokens ($DPI / AAVE / UNI / COMP)
  • 90% (~220 ETH)
  • 80% (~200 ETH)
  • 70% (~172 ETH)
  • 60% (~150 ETH)
  • 50% (~125 ETH)
  • 40% (~100 ETH)
  • 30% (~75 ETH)
  • 25% (~61 ETH)
  • 20% (~50 ETH)
  • 15% (~37 ETH)
  • 10% (~25 ETH)
  • 7.5% (~18 ETH)
  • 5.0% (~12 ETH)
  • 2.5% ( ~6 ETH)
  • 1.0% (~2.5 ETH)
  • 0.5% (~1.2 ETH)
  • Nada (0)

0 voters

5. Smaller / more volatile DeFi ($DEGEN / OHM / )
  • 90% (~220 ETH)
  • 80% (~200 ETH)
  • 70% (~172 ETH)
  • 60% (~150 ETH)
  • 50% (~125 ETH)
  • 40% (~100 ETH)
  • 30% (~75 ETH)
  • 25% (~61 ETH)
  • 20% (~50 ETH)
  • 15% (~37 ETH)
  • 10% (~25 ETH)
  • 7.5% (~18 ETH)
  • 5.0% (~12 ETH)
  • 2.5% ( ~6 ETH)
  • 1.0% (~2.5 ETH)
  • 0.5% (~1.2 ETH)
  • Nada (0)

0 voters

6. DAO tokens (FWB / BANK)
  • 90% (~220 ETH)
  • 80% (~200 ETH)
  • 70% (~172 ETH)
  • 60% (~150 ETH)
  • 50% (~125 ETH)
  • 40% (~100 ETH)
  • 30% (~75 ETH)
  • 25% (~61 ETH)
  • 20% (~50 ETH)
  • 15% (~37 ETH)
  • 10% (~25 ETH)
  • 7.5% (~18 ETH)
  • 5.0% (~12 ETH)
  • 2.5% ( ~6 ETH)
  • 1.0% (~2.5 ETH)
  • 0.5% (~1.2 ETH)
  • Nada (0)

0 voters

7. Partner projects (???)
  • 90% (~220 ETH)
  • 80% (~200 ETH)
  • 70% (~172 ETH)
  • 60% (~150 ETH)
  • 50% (~125 ETH)
  • 40% (~100 ETH)
  • 30% (~75 ETH)
  • 25% (~61 ETH)
  • 20% (~50 ETH)
  • 15% (~37 ETH)
  • 10% (~25 ETH)
  • 7.5% (~18 ETH)
  • 5.0% (~12 ETH)
  • 2.5% ( ~6 ETH)
  • 1.0% (~2.5 ETH)
  • 0.5% (~1.2 ETH)
  • Nada (0)

0 voters

8. NFT flipping fund
  • 90% (~220 ETH)
  • 80% (~200 ETH)
  • 70% (~172 ETH)
  • 60% (~150 ETH)
  • 50% (~125 ETH)
  • 40% (~100 ETH)
  • 30% (~75 ETH)
  • 25% (~61 ETH)
  • 20% (~50 ETH)
  • 15% (~37 ETH)
  • 10% (~25 ETH)
  • 7.5% (~18 ETH)
  • 5.0% (~12 ETH)
  • 2.5% ( ~6 ETH)
  • 1.0% (~2.5 ETH)
  • 0.5% (~1.2 ETH)
  • Nada (0)

0 voters

9. NFT / fractional NFT long term
  • 90% (~220 ETH)
  • 80% (~200 ETH)
  • 70% (~172 ETH)
  • 60% (~150 ETH)
  • 50% (~125 ETH)
  • 40% (~100 ETH)
  • 30% (~75 ETH)
  • 25% (~61 ETH)
  • 20% (~50 ETH)
  • 15% (~37 ETH)
  • 10% (~25 ETH)
  • 7.5% (~18 ETH)
  • 5.0% (~12 ETH)
  • 2.5% ( ~6 ETH)
  • 1.0% (~2.5 ETH)
  • 0.5% (~1.2 ETH)
  • Nada (0)

0 voters

10. Metaverse tokens (MVI / ASX / MANA / ILV, YGG, NFTX, MEME, SAND)
  • 90% (~220 ETH)
  • 80% (~200 ETH)
  • 70% (~172 ETH)
  • 60% (~150 ETH)
  • 50% (~125 ETH)
  • 40% (~100 ETH)
  • 30% (~75 ETH)
  • 25% (~61 ETH)
  • 20% (~50 ETH)
  • 15% (~37 ETH)
  • 10% (~25 ETH)
  • 7.5% (~18 ETH)
  • 5.0% (~12 ETH)
  • 2.5% ( ~6 ETH)
  • 1.0% (~2.5 ETH)
  • 0.5% (~1.2 ETH)
  • Nada (0)

0 voters

11. Metaverse Land (Decentral land / SAND / …)
  • 90% (~220 ETH)
  • 80% (~200 ETH)
  • 70% (~172 ETH)
  • 60% (~150 ETH)
  • 50% (~125 ETH)
  • 40% (~100 ETH)
  • 30% (~75 ETH)
  • 25% (~61 ETH)
  • 20% (~50 ETH)
  • 15% (~37 ETH)
  • 10% (~25 ETH)
  • 7.5% (~18 ETH)
  • 5.0% (~12 ETH)
  • 2.5% ( ~6 ETH)
  • 1.0% (~2.5 ETH)
  • 0.5% (~1.2 ETH)
  • Nada (0)

0 voters

12. Floor sweeping Buzzed bears
  • 90% (~220 ETH)
  • 80% (~200 ETH)
  • 70% (~172 ETH)
  • 60% (~150 ETH)
  • 50% (~125 ETH)
  • 40% (~100 ETH)
  • 30% (~75 ETH)
  • 25% (~61 ETH)
  • 20% (~50 ETH)
  • 15% (~37 ETH)
  • 10% (~25 ETH)
  • 7.5% (~18 ETH)
  • 5.0% (~12 ETH)
  • 2.5% ( ~6 ETH)
  • 1.0% (~2.5 ETH)
  • 0.5% (~1.2 ETH)
  • Nada (0)

0 voters

13. Buy and fractionalise Buzzed Bears
  • 90% (~220 ETH)
  • 80% (~200 ETH)
  • 70% (~172 ETH)
  • 60% (~150 ETH)
  • 50% (~125 ETH)
  • 40% (~100 ETH)
  • 30% (~75 ETH)
  • 25% (~61 ETH)
  • 20% (~50 ETH)
  • 15% (~37 ETH)
  • 10% (~25 ETH)
  • 7.5% (~18 ETH)
  • 5.0% (~12 ETH)
  • 2.5% ( ~6 ETH)
  • 1.0% (~2.5 ETH)
  • 0.5% (~1.2 ETH)
  • Nada (0)

0 voters

14. Spending reserve (Contributors / charities / public goods / seed funding for merch)
  • 90% (~220 ETH)
  • 80% (~200 ETH)
  • 70% (~172 ETH)
  • 60% (~150 ETH)
  • 50% (~125 ETH)
  • 40% (~100 ETH)
  • 30% (~75 ETH)
  • 25% (~61 ETH)
  • 20% (~50 ETH)
  • 15% (~37 ETH)
  • 10% (~25 ETH)
  • 7.5% (~18 ETH)
  • 5.0% (~12 ETH)
  • 2.5% ( ~6 ETH)
  • 1.0% (~2.5 ETH)
  • 0.5% (~1.2 ETH)
  • Nada (0)

0 voters

Congratulations, this is the end :partying_face:

Thank you :pray:

5 Likes

I’m going to delay making my votes until tomorrow so I don’t influence people (and I need to work out what I think…).

I’m thinking of keeping the vote open until Tuesday (possibly longer).

6 Likes

Thank you for doing this, its really comprehensive and will provide really good clarity for the direction of the dao when we get the votes up. Hopefully everyone sees it. Appreciate you pulling it together. Lets go bears!

5 Likes

Thank you for creating this poll, it’s very comprehensive. I actually found that my descions changed as I worked my way down the list. In hindsight I should have completed this poll as a paper exercise before registering my votes.

3 Likes

OA for treasury committee
OA 2021

8 Likes

I have just one gripe with the number of options we have here. On the ‘spending reserve’ poll for example, I chose 25% because I feel it’s wise to hold a healthy portion of the treasury available for collaborations etc.
Reasoning aside, I don’t think this accurately catches sentiment. I’m the only person who chose 25% but I would gladly support 10% over the current lead of 2.5%.
Also, do people really think that 2.5% of the treasury is enough to sustain spending needs?

4 Likes

What do ya mean Mo what’s OA? lol

1 Like

OverAnalyser aka the bear that started those poles

3 Likes

thank you for putting in the time! A great way to get constructive conversations going

2 Likes

Thats a great question,

I would say that we are all learning. I’m not sure I fully understand the impact of combining NFT’s and Defi. My instinct is to buy and hold, it could be that BBH prefers something more active with their reserves. If you look at TAM, their DAO has migrated from a rebasing token into a more active portfolio management DAO (including liquidity mining of other protocols).

For now, I think that BBH needs an overall strategy that is pretty passive and risk-averse, and then time for the community to develop and get a better idea of their risk preferences.

My mental map is that BBH will end up with a main Honey pot pack who manage the multi sig, but they may need some smaller packs to look after specific parts (whether just research into options or a multisig doing trades). So we may end up with a packs to look at

  • DeFi investments (ETH income / diversification),
  • Metaverse / land investments
  • NFT flipping

I would agree that taking the highest rank for each probably makes no sense, but it does give a signal that should be considered.

What I’m planning to do (probably on Tuesday) is taking all the votes into a google sheet and plotting each from 0 to 90%. Then I’ll and simply if down to give an overall portfolio structure that I think makes sense - This will absolutely be influenced by my biases as to what I think is a good final structure. I suspect I’ll make some choices that go against the sentiment polls - Thats fine, I just have to explain why.

I would :heart: :heart: :heart: LOVE :heart: :heart: :heart: for someone else to look at the same data and produce an alternative struture. Then we can all look at a few different options and see what the bears prefer.

I think this will have two useful outcomes:

  1. We come together and agree on an initial portfolio structure (the bears can change in the future)
  2. We can see WHICH BEARS are interested in working in this area. What they can deliver and where their strengths / biases are.

Regards

OA

6 Likes

My preference is to put as much to work as possible where some allocations are far more liquid that others. For instance if we have a decent allocation in stETH my understanding is that it’s a relatively safe investment and we could if needed reduce or increase the allocation fairly easily. Caveat here that this is my read of it, maybe it doesn’t hold?

1 Like

I agree with you. 2.5% seems to low, especially this early. I voted 10% as reserve and 10% on yield bearing ETH (so roughly 20%). In my eyes they both fulfill the same purpose.

3 Likes

For the information of those curious: Lido will allow you to mint and redeem ETH:stETH. We won’t even have to lean on a DEX to do this

2 Likes

OK, We have had 33 votes and can look at the initial results:

A bar chart look like this:

If we went with the most selected option for each we would have a portfolio that looks like this:


and have 20% unallocated (Party fund? :partying_face: )

If we took the average (votes x % / total votes) for each the portfolio would look like this:

Note, one Bear allocated ~300% in total which I think indicates that they like leverage.


There are charts on my spreadsheet here: BBH Honeypot strategy - Google Sheets

The combined chart looks like this (a bit of a mess):

The individual charts look much better (but I’m not going to post all 14…)

4 Likes

OK, now the interesting bit :grinning:

This is my suggestion of how we could structure the Honeypot. This is based on my personal bias and considering the votes above.

% ETH USD
Income generating ETH 30% 73.5 $242,550
DeFi tokens 10% 24.5 $ 80,850
DAO / Partner project tokens 10% 24.5 $ 80,850
NFT Flipping fund 20% 49.0 $161,700
NFT long term fund 10% 24.5 $ 80,850
Metaverse Tokens and Land 15% 36.8 $121,275
Spending reserve (as ETH) 5% 12.2 $ 40,425
Total 100% 245 $808,500

Comments on variation from the votes:

  • Income generating ETH increase because I think it’s a good foundation.
  • BTC / other L1’s because DeFi and NFTs are built on ETH and I don’t see anything else is a better option. Allocated zero.
  • Zero stable coins - if ETH / DeFi crashes we won’t have USD reserves, but 10% / $80,000 USD is not going to make much of a difference to how BBH community grows in a downturn. Allocated zero.
  • DeFi large and small combined into a single 10% pot.
  • Social DAOs / Partner projects combined into a single pot and allocated 10% - I currently have no idea where this would be invested, so held as ETH until the bears decide.
  • NFT flipping fund at 20% + 10% spent on long term NFT holds. - basically the popular votes.
  • Metaverse tokens and Land combined into a single 15% allocation. The balance between them to be decided later / following research.
  • Spending reserve - only 5% which is low. I would assume that all royalties goto this pot (0.04 ETH floor x 50 volume x 2% = 0.04 ETH per day ~ $4,000 per month).

So, who wants to create an alternative strategy for our honeypot :thinking:

15 Likes

Thank you for taking the time to do all this. I think this is a great way to start honing in on what we would want our Honeypot to look like.

I wish I had gotten around to throwing my vote in but if I had, I think it would of looked pretty close to this structure. I am going to take some time to digest this and mull it over. I will reply with any thoughts.

Well done!

5 Likes

Thanks @OverAnalyser! Not only going to all the effort of doing this but also explaining it so clearly. Think the breakdown looks solid

4 Likes

You’re simply amazing OA thank you! I loved seeing your analysis and very happy with your suggestions. I vote yes……also I’m putting my hand up I may have got super excited and didn’t calculate my vote numbers before entering them sorry!!!

1 Like