IMC Period 38 Report; Period 39 Budget

Governance
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Hi all,

Summary below:

Report 38

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IMC continued spending budget cut (by calculating values with artificial 0.005 RPL/ETH ratio)

  • ~11k of inflows, ~8.7k of outflows
  • Budgeting summary:
    • RPL balance change: Period 38 saw a +25% change from ~9.17k RPL to ~11.45k RPL
    • The IMC has decided to continue saving the allocations previously budgeted for cakepie (1,100 RPL per fortnight), and Hop (100 RPL per period), which contributed to an additional 2,300 per period not being spent). The IMC is still deliberating on how this will be spent moving forward.
    • The IMC recently completed elections with some members being rotated off, some new folks joining, and the size lowered to 7 instead of 9. The new IMC should evaluate the budget and decide on any changes to regular transactions and how to spend (or continue to temporarily save) reserves.
    • Balancer continues to send USDC as part of the Balancer Alliance fee share. This is used to grow the v3 position for “LP 80/20 BAL/ETH”.

Budget 39

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  • Similar plan as last period, expecting another ~+20% surplus, as we deliberate the best plan for extra funds moving forward

Data - 1% Price Impact

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  • rETH has been trading at a larger discount recently, this trend has been seen in other LST’s possibly due to AAVE borrow rates increasing (forcing the unwinding of looped staking where staking yields are higher than borrow APR). Historically rETH has not been leveraged in looping due to the lack of certainty in ability to mint/redeem rETH in a time sensitive manner. The broader trend may still weigh on the rETH secondary price causing a discount at the moment, and ideally rETH withdrawals could be implemented in Saturn 2 to provide the highest assurance of liquidity from forced exits
  • The IMC is still deliberating a plan of action for reserve funds moving forward and the market is demonstrating sufficient liquidity in the meantime.

Resources

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