Grant Proposal 8 Warden Finance Risk & Tooling Engagement

Euler Grant Proposals Voted Proposals
1

2023-02-03T05:00:00Z→2023-02-09T05:00:00Z

Title: [RFC] Warden Finance - Risk & Tooling Engagement
Author(s): Warden Finance
Related Discussions: [N/A]
Submission Date: 2023-02-03

1000×500 38 KB

Simple Summary

This proposal aims to formalize how Warden will continue supporting Euler in building and maintaining risk and analytics tools. The proposal aim to also formalize how we will contribute to the DAO by reviewing risk parameters on an ongoing basis to make sure they are well calibrated.

Note that we have had discussions with Euler core team members regarding this proposal.

Who is Warden Finance?

Background

Warden helps DeFi protocols identify and manage risks. With the help of our open analytics platform, we propose parameter recommendations based on our in-house research, participate in governance, and build custom risk tools.

Warden has been contributing to Euler since Q1 2022 by building protocol’s main Dune dashboard, implementing the protocol’s subgraph and contributing to governance through proposals and discussions on the forum.

Since then, we have also built a dedicated set of risk management tools for Euler through Warden Finance. The platform encompasses a set of tools for exploring DeFi accounts, running simulations, backtesting strategies and stress-testing protocols. Warden empowers everyone in the Euler community to make data-driven risk decisions.

How we have contributed to Euler so far

See Warden Finance’s full history on Euler forum

We have also been voting on most of the DAO’s snapshot votes.

Other DeFi Contributions

Our Values

  • Transparency. In the best interest of the community, our platform will always be accessible and open for feedback. We have created tools that are accessible to the public in order to make our proposals as transparent and cohesive as possible.
  • Data-driven. Every recommendation we make is based on cold hard data that is accessible and verifiable by anyone. Through the Warden Finance platform, we carry a holistic picture of the protocol and can accurately measure the impact of any change in the system.
  • Quality. Risk management is mission critical for protocols, and we believe the tools and recommendations should live up to that standard. We build products that are made to be used and meant to be trusted.

Abstract

This proposal lays the foundation for a 1-year engagement between the Euler DAO and Warden. Through this engagement, Warden Finance would continue contributing to the Euler ecosystem in the following areas:

  • Tooling and infrastructure - Maintain current infrastructure (Dune dashboard, Euler subgraph, risk tools on Warden) and add new features for Euler on the Warden platform. More details in the specifications below.
  • Risk management - In collaboration with the core team, actively contribute to protocol’s risk management through governance recommendations and reviews. We propose to publish monthly risk reviews where we validate that the protocol’s governance parameters are well calibrated (CF, BF, IRMs, borrow and supply caps).

Motivation

  • Contribute to making sure Euler governance parameters are well calibrated
    • Parameters need to be assessed on a regular basis to account for ever changing market conditions.
    • We will make sure parameters are adequate based on market conditions and remain competitive with other protocols.
  • Make sure infrastructure is well maintained and can be used by external partners
    • Warden has helped and is willing to keep being the primary contributor for the dune dashboard and subgraph work.
  • Help with decentralization of the protocol
    • Engage Warden as a key contributor for the longer term to help with the aforementioned needs.

Specification & Implementation

Tooling and infrastructure for Euler

  • Warden platform additions
    • LSD monitoring
    • Governance parameters monitoring
    • New asset onboarding
    • Market parameter and interest rate model benchmarking
  • Infrastructure maintenance and updates
    • Maintenance and rework of Euler Dune dashboard
    • Subgraph updates (Add governance parameters, various fix related to positions)
  • Develop a data extraction tool for Euler subgraph (similar to this) to simplify querying on-chain data for Euler community members.

Monthly risk assessment reports & recommendations

We will work with the Euler core risk team to review governance parameters for all active markets and propose recommendations based on our analyses. More specifically we will review the following parameters:

  • Collateral / borrow factors
  • Borrow / supply caps
  • Interest Rate Models (base rate, kink rate, max rate, kink utilization, reserve fees)
  • Treasury (harvesting decisions & adjacent recommendations)

Budget and timeline

Budget: $50K per quarter.

Period: Feb 2023 to Feb 2024 (1 year)

We are a team of three (Hugo Boisselle, David Dallaire & Philippe Labrecque) with deep experience in crypto, tech, and finance. The proposed grant will cover infrastructure cost ($3K-$5K per month to run our simulation platform) as well as contributors time and expertise.

We will post quarterly updates on what we have delivered to the DAO and post monthly risk assessments on the Forum.

Review period

We propose a 3 month review period where the DAO can terminate the engagement if it is not satisfied by our performance. Given our track record and past contributions we think it is unlikely that such action should be taken.

Poll

  • Yes
  • No
  • Abstain

0 voters

3 Likes
2

I fully support this. The warden finance tool is the most advanced risk tool in DeFi open to everyone, and showcases the great quality of work done by the team. A monthly review coupled with additional tools for 50k/q is well worth the money for the DAO.

3

The Anthias team would also support here. Warden’s track record of commitment to supporting the Euler ecosystem through the tools they have shipped and the governance work they have done speaks for itself.

4

Thank you. I am generally in favor of funding risk and analytics

maybe this can be rewritten as 1 year starting from the date of snapshot approval?

  1. I suggest the first instalment, [50K] to be paid upfront to cover infra costs and the remaining 3 instalments retroactively at the end of each quarter provided there are 3 monthly reports which can be used as KPIs for the each quarter. This means that there will be a 6 month gap between the first and second instalment. What do you think @Shippooor ?
5

I think these changes make sense. We’ll amend the starting date from the date of the approval. I think structuring the payments conditional on the delivery of our monthly risk reports with the first payment being paid upfront is a good payment structure. Thanks for your feedback and support.

1 Like
6

I am in favor of this idea.
These guys have demonstrated their involvement in EulerDAO and have a solid traction.

1 Like
7

Full support from me guys. I’m a fan of your previous work and contributions, this is a great symbiotic relationship for the DAO.

1 Like
8

Title: [Grant Proposal 8] Warden Finance - Risk & Tooling Engagement
Author: Warden Finance
Related Discussions: [N/A]
Submission Date: 2023-02-17

1000×500 38 KB

Simple Summary

This proposal aims to formalize how Warden will continue supporting Euler in building and maintaining risk and analytics tools. The proposal aim to also formalize how we will contribute to the DAO by reviewing risk parameters on an ongoing basis to make sure they are well calibrated.

Note that we have had discussions with Euler core team members regarding this proposal.

Who is Warden Finance?

Background

Warden helps DeFi protocols identify and manage risks. With the help of our open analytics platform , we propose parameter recommendations based on our in-house research, participate in governance, and build custom risk tools.

Warden has been contributing to Euler since Q1 2022 by building protocol’s main Dune dashboard, implementing the protocol’s subgraph and contributing to governance through proposals and discussions on the forum.

Since then, we have also built a dedicated set of risk management tools for Euler through Warden Finance . The platform encompasses a set of tools for exploring DeFi accounts, running simulations, backtesting strategies and stress-testing protocols. Warden empowers everyone in the Euler community to make data-driven risk decisions.

How we have contributed to Euler so far

See Warden Finance’s full history on Euler forum

We have also been voting on most of the DAO’s snapshot votes.

Other DeFi Contributions

Our Values

  • Transparency. In the best interest of the community, our platform will always be accessible and open for feedback. We have created tools that are accessible to the public in order to make our proposals as transparent and cohesive as possible.
  • Data-driven. Every recommendation we make is based on cold hard data that is accessible and verifiable by anyone. Through the Warden Finance platform, we carry a holistic picture of the protocol and can accurately measure the impact of any change in the system.
  • Quality. Risk management is mission critical for protocols, and we believe the tools and recommendations should live up to that standard. We build products that are made to be used and meant to be trusted.

Abstract

This proposal lays the foundation for a 1-year engagement between the Euler DAO and Warden. Through this engagement, Warden Finance would continue contributing to the Euler ecosystem in the following areas:

  • Tooling and infrastructure - Maintain current infrastructure (Dune dashboard, Euler subgraph, risk tools on Warden) and add new features for Euler on the Warden platform. More details in the specifications below.
  • Risk management - In collaboration with the core team, actively contribute to protocol’s risk management through governance recommendations and reviews. We propose to publish monthly risk reviews where we validate that the protocol’s governance parameters are well calibrated (CF, BF, IRMs, borrow and supply caps).

Motivation

  • Contribute to making sure Euler governance parameters are well calibrated
    • Parameters need to be assessed on a regular basis to account for ever changing market conditions.
    • We will make sure parameters are adequate based on market conditions and remain competitive with other protocols.
  • Make sure infrastructure is well maintained and can be used by external partners
    • Warden has helped and is willing to keep being the primary contributor for the dune dashboard and subgraph work.
  • Help with decentralization of the protocol
    • Engage Warden as a key contributor for the longer term to help with the aforementioned needs.

Specification & Implementation

Tooling and infrastructure for Euler

  • Warden platform additions
    • LSD monitoring
    • Governance parameters monitoring
    • New asset onboarding
    • Market parameter and interest rate model benchmarking
  • Infrastructure maintenance and updates
    • Maintenance and rework of Euler Dune dashboard
    • Subgraph updates (Add governance parameters, various fix related to positions)
  • Develop a data extraction tool for Euler subgraph (similar to this ) to simplify querying on-chain data for Euler community members.

Monthly risk assessment reports & recommendations

We will work with the Euler core risk team to review governance parameters for all active markets and propose recommendations based on our analyses. More specifically we will review the following parameters:

  • Collateral / borrow factors
  • Borrow / supply caps
  • Interest Rate Models (base rate, kink rate, max rate, kink utilization, reserve fees)
  • Treasury (harvesting decisions & adjacent recommendations)

Budget and timeline

Budget: $50K per quarter. With the first payment paid up front as suggested by jengajojo above.

Period: Feb 2023 to Feb 2024 (1 year)

We are a team of three (Hugo Boisselle, David Dallaire & Philippe Labrecque) with deep experience in crypto, tech, and finance. The proposed grant will cover infrastructure cost ($3K-$5K per month to run our simulation platform) as well as contributors time and expertise.

We will post quarterly updates on what we have delivered to the DAO and post monthly risk assessments on the Forum.

Review period

We propose a 3 month review period where the DAO can terminate the engagement if it is not satisfied by our performance. Given our track record and past contributions we think it is unlikely that such action should be taken.

9

Hi @Shippooor, while I support your grant request, I think it would be wise to deal with the QB proposal first as they propose to change the whole process

10

Hey @Raslambek thanks for the support. We think our proposed engagement would probably fall outside the QB initiative. We think of our proposal as a Aave/BGD labs type engagement more than a one off grant type project like what QB is proposing.

1 Like
11

Snapshot vote: Snapshot

12

Spoke to @Shippooor today. We agreed to vote Yes on the proposal with the following commitment from Warden/Shippooor:

  1. Warden will charge $50,000 per quarter for the first two quarters.
  2. Starting from third quarter, Warden will reduce its pricing to $35,000 per quarter.

This will still be conditional on the outcome of the review by Euler dao after the first quarter, and the review will be independent of the above agreement.

1 Like
13

Based on our conversation with @shaishav0x yesterday we are willing to lower our pricing to $170K for the year to show our commitment to the Euler DAO. Thanks for your feedback and support.