Thanks @Moss for putting this together.
Governance
I’d suggest the following governance process from here:
- Two simultaneous snapshot votes:
-
Do we want to allocate 6,624 ETH from the Enzyme vault to the Kiln solution? Y/N
-
Do we want to allocate the remainder of the ETH in the enzyme vault to Stakewise V3 when live on a set of operators chosen by Enzyme?
- If the snapshot votes have a successful outcome, create an NMPIP for an on-chain governance vote to allow implementation of the investment allocations & make a decision on what to do with the idle funds until Stakewise V3 (possibly via more signalling votes)
If either/both are unsuccessful, we can have a follow-up snapshot vote on alternatives, including withdrawing the funds.
Happy to work with yourself and @BraveNewDefi to come up with wording for the snapshot votes as a next step.
Personal view on proposal
Kiln
I’d be supportive of allocating 50% of the current Enzyme vault balance to Kiln as per your proposal – I think the risk/reward/fees balance is good, they’re a well rated operator & an allocation in my opinion would represent a good use of those funds.
Stakewise
My understanding is that these funds are included in the 0.3% AUM fee even while “idle” in WETH – would you be willing to waive the fee on the inactive portion of the assets until they are invested?
If not, there’s a strong case for withdrawing the funds at least until Stakewise V3 is live, assuming the members want to go ahead with that option, as uncertainty remains around how quickly the investment can start earning a return.
You may be aware that Nexus Mutual has a longstanding relationship with Stakewise (they were our first buyers of ETH Staking Cover) & there have since been ongoing conversations about staking ETH with them. There was also a reasonably well-received investment proposal back in May ’22 which was put on hold as we awaited Stakewise V3, and I would anticipate that Nexus Mutual will choose to allocate directly to either a Nexus Mutual-chosen set of validators or osETH, depending on the technical ability for Nexus Mutual to create a vault ourselves & deposit capital pool funds in it.
Where Enzyme would add value here is providing an alternative set of validators vetted by your process to those chosen by Nexus Mutual, or a lower fee than osETH.