[DIP] Derive DAO Treasury DeFi Token Reallocation for Enhanced $DRV Buybacks

General
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# Simple Summary

This proposal seeks to swap DeFi tokens held in the Derive DAO treasury for USDC and allocate the proceeds to increase weekly $DRV token buybacks.

Additionally, it includes the return to Derive DAO treasury of legacy unclaimed rewards from Lyra on Optimism and Arbitrum.

# Abstract

This proposal aims to sell DeFi tokens currently held in the Derive DAO treasury and convert them into USDC. The resulting USDC will be used to augment the weekly $DRV buybacks, which have been conducted since the launch of the Derive protocol.

Reference: [DIP] DRV Token Launch and Functionality
(25% of protocol revenue will be used for token buy-backs for the DAO treasury.)

# Motivation

Holding DeFi tokens unrelated to Derive’s strategic objectives provides no long-term value to the DAO. Converting these assets into USDC and using the proceeds to increase $DRV buybacks will strengthen confidence in the $DRV token’s value accrual mechanism.

The estimated value of the DeFi tokens to be swapped is approximately $189,237 USD.

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Exclusions:

  • ETH tokens are excluded to maintain operational liquidity.
  • OP tokens are excluded, as most are allocated from OP Foundation grants for distribution.
  • AAVE tokens are excluded, as were allocated from AAVE Foundation for AAVE options market.

# Specification

  • Unclaimed rewards from old Lyra distributions will be returned to the Derive DAO treasury. Users will have a 30-day window to claim these rewards on Optimism and Arbitrum. Following the expiration of this grace period, any unclaimed OP and ARB tokens will be transferred to the treasury. Smart contract affected are listed at the end of the proposal.

  • Unstake and swap for USDC all tokens besides: DRV, ETH, USDC, wETH, OP, LYRA, stkLYRA, veVELO, veAERO and AAVE/stkAAVE.

  • Allocate the resulting USDC to match, on a 1:1 basis, the regular weekly $DRV buybacks funded by DAO revenue.

  • Continue the buyback matching program until all USDC from the DeFi token sales is exhausted or a price cap of 0.10 $ per $DRV is reached.

  • Retain all acquired $DRV tokens in the Derive DAO treasury for future strategic use.

# Rationale

This proposal optimizes the Derive DAO treasury by reallocating non-strategic assets and aligning incentives with long-term value creation for $DRV token holders.

# Sources

  • Derive DAO treasury wallets:

https://zapper.xyz/bundle/0xD4C00FE7657791C2A43025dE483F05E49A5f76A6,0xbfA8B86391c5eCAd0eBe2B158D9Cd9866DDBAaDa,0x246d38588b16Dd877c558b245e6D5a711C649fCF,0x8ef8eEEB39b21ECdDE451e6C539017DF24D14a19,0x9499BC2557af69385a3d2A039f425724A7461Aef,0x2CcF21e5912e9ecCcB0ecdEe9744E5c507cf88AE,0x1B197837723713b953bD977851bCc2f49e4FDdF5?tab=dashboard

  • Legacy rewards smart contracts:

Optimism

https://optimistic.etherscan.io/address/0x3bb38b77a266fceb4fa5659e0ecb5ecf6aeac28d

Arbitrum

https://arbiscan.io/address/0x835f827E3D4ab11Dd0B4a0B894B43b308A0e41FF#code

1 Like
2

Updated proposal on April 29th, 2025

3

Updated proposal on May 5th, 2025

Excluded AAVE/stkAAVE tokens.