eIP 56: End Current DAO Expenses While Protocol is Non-Operational

[eIP] Euler Improvement Proposals Voted Proposals
6

Title: eIP 56: End Current DAO Expenses While Protocol is Non-Operational
Author: @Matt_StableLab
Related Discussions: eGP 7, eGP 8, eGP 9, Encode
Submission Date: May 23rd, 2023

Simple Summary:

The DAO should reevaluate its service agreements and commitments made before the hack as they may no longer provide value during this time of rebuilding.

Abstract:

Prior to the hack, Euler DAO had commitments with 4 service providers. As the protocol is not currently operational and we are unsure what the new version of Euler will look like, it does not make sense for the DAO to continue funding these grants. The DAO is now in a far different state than when these agreements were initially made. As such, we should revisit their benefit to the DAO. Ending these agreements would also allow these service providers the ability to propose new initiatives that could benefit Euler V2.

Motivation:

Even though the Euler Protocol is not currently operational, the DAO is still spending money on tools, analysis, and grant programs. At present, these services are not needed and/or not possible due to the protocol being off. The DAO should consider ending these agreements. Stopping these grants would also allow the service providers to revamp their proposals to become better aligned to serve Euler V2.

Below is a breakdown of the DAO costs that should be re-evaluated.

eGP 6: Grant Request for Defishy to Create VaR Simulation Model With Euler Liquidation Health Graph View Implemented in EGP1

Cost: $3,500 per Month

Motivation For Ending Payment: As the protocol is non-operational there is no need for simulations or liquidation health graphs.

Grant Proposal 7: Anthias x Euler Alert System Grant Proposal

Cost: $500 per Month

Motivation For Ending Payment: As the protocol is non-operational there is no need for an alert system at this time.

Grant Proposal 8 Warden Finance Risk & Tooling Engagement

Cost: $50,000 per Quarter

Motivation For Ending Payment: As the protocol is non-operational there is no need for risk and analytics tools at this time. The Euler protocol will more than likely need these services once restarted but for now there is no work to be done.

Grant Proposal 9: Delegated Domain Allocation by Questbook

Cost: $222,000 for 3 months

Motivation For Ending Payment: As the protocol is not currently operational there is no need for a grants program. Additionally, with the uncertainty of what Euler will look like upon return, it would be beneficial to reevaluate this proposal and adjust it to the needs of the next version of the Euler Protocol.

Encode Club Grant Proposal

Cost: $30,000

Motivation For Ending Payment: This payment was already sent to Encode. However, Encode was not able to distribute these funds to grants due to the hack. Since the dispersion of these funds for grants is not currently possible, it would be beneficial to the DAO if Encode returned these funds.

Specification/Body Text:

This proposal would stop the following Payments

  1. $3,500 per month to DeFishy (now called Anthias)
  2. $500 per month to Anthias
  3. $50,000 per quarter to Warden Finance
  4. $222,000 to Questbook

Additionally, this would request the return of the following to the DAO treasury

  1. $30,000 from Encode

These service providers could then resubmit grant proposals closer to the relaunch of the protocol with any necessary adjustments concerning the new and improved V2. It would then be up to the DAO whether or not to onboard them again.

Next steps

  1. Discuss which of these agreements the DAO would like to end.
  2. Vote on Snapshot
  3. Stop payments 1-4 mentioned above
  4. Request the return of the $30,000 from Encode

Relevant Links:

Pros and Cons of This Proposal

Pros

  • Saves the DAO $4,000 in monthly costs
  • Saves the DAO $50,000 in quarterly costs
  • Saves the DAO $252,000 in 1-time costs
  • The grants can be reformatted to better fit the needs of Euler V2
  • Could allow the money saved to be reallocated to new programs

Cons

  • Service Providers might not reapply and we lose their services
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