Thank you for the detailed post, @Uisce.eth !
@Gauthier already covered a majority of the questions I was going to ask, and I’ve read through your responses. Appreciate the timely response.
My only comment would be on the proposed allocation from the capital pool to rETH.
14,400 ETH is on the higher side considering that members will be allocating a certain % of the capital pool as liquidity for the racheting AMM as part of the new tokenomics project in the near future.
I’d be in favor of 10,000 to 12,000 ETH allocated to an investment in rETH, but 14,400 ETH is a bit too high, imo, given the mutual currently holds 32,442 stETH and 13,218.593 wETH in the Enzyme vault (which may also be allocated to ETH staking).
According to the Investment Philosophy Review - 2023, the committee has recommended a target for Lower Risk investments at 40% of the capital pool.
If 12,000 ETH were allocated to rETH and the balance of wETH in Enzyme is allocated to ETH staking solutions, then the mutual would have 57,695.3743 ETH allocated across ETH staking solutions–that would put members at 39.68% allocation across ETH staking solutions, near the target when using the 145,392 ETH worth of value held in the capital pool, as cited from this Dune dashboard. With earnings, the target would be met a short time after the target investment allocation is made.
When members decide the liquidity parameters for new tokenomics, the ETH staking investment allocation would potential range from 43% to 50% after an amount ETH is allocated to the racheting AMM pool, if 12,000 rETH, the wETH in Enzyme, and the current stETH represent all of the mutual’s ETH staking allocations in the capital pool.
Other than the suggestion to reduce the proposed amount, I’m in support of this proposal. Looking forward to reading the Nexus Mutual Protocol Improvement Proposals for this discussion!