Strategic Partner Onboarding & Multi-Sig Syndicated Proposal
This proposal seeks to:
- Onboard strategic partners onto the Hubble Ecosystem; and
- Appoint a number of individuals from the Hubble Community to be Multi-sig signers for the Hubble DAO
Purpose of syndication: lower number of proposal overheads in these early stages as the foundations of the DAO are being established, and ensure that Hubble DAO is able to move quicker during this period of initial rapid expansion.
Rendered by Set 0x pursuant to proposal passed on Dec 27, 2021, 4:26 AM titled “Set 0x Appointment Proposal” under delegated responsibilities:
- ‘Appointment to undertake investor management along with investor due diligence’.
- ‘Drafting key agreements for important stakeholders and future partners’.
Strategic Partner Onboarding Proposal
This first proposal seeks to enable and create a Hubble DAO ecosystem of strategic partners on the terms listed below, binding on the Strategic Partners contained herein under three broad categorizations; Liquidity Provision Partners (LPP), Market Making Partners (MMP) and a third residual class of Strategic Partners. Any references made herein to strategic partners apply to all three categories generally. The variance of classification of a strategic partner affect the rights owed and obligations due herein:
1. Token Strategic Diversification
- The Hubble DAO will, in onboarding a number of strategic partners, transfer 8.25% of the token supply at Token Generation Event (TGE) to the aforementioned.
- In consideration, the strategic partners will collectively transfer 3,300,000 USDC to the Hubble Exchange DAO Treasury.
2. Method of Transfer
- Once this proposal is executed on Snapshot, each strategic partner will have 14 days to transfer its agreed amount of USDC to the DAO Treasury (“Transfer Period”).
- If a strategic partner does not deposit its agreed amount of USDC to Hubble Exchange DAO’s treasury within the Transfer Period, any deposited USDC will be returned to that strategic partner, and the defaulting partner will not receive any Hubble Exchange tokens in connection with this proposal and in accordance with the terms listed herein.
- At the TGE, the DAO will transfer the strategic partners’ Hubble Exchange tokens to a vesting contract which will be subject to the cliff period delineated below.
3. Vesting and Specific Responsibility of Strategic Partners
- Vesting for all strategic partners will begin after a six-month cliff during which time no tokens will be vested. The cliff period begins at the TGE. Once the cliff period ends, a linear vesting schedule of 24 (twenty-four) months will be imposed.
- The strategic Liquidity Provision Partners (LPP) will be required to contribute 5x their investment monies into a designated Hubble DAO liquidity bucket for market making activities for a period no shorter than 3 (three) months. Any violation of this clause will lead to the allocation to the non-performing partner being returned to the DAO and any agreement with that partner pursuant to this proposal terminated. LPPs shall not receive present, retroactive or future unique incentives pursuant to the provision of liquidity contained herein, besides the respective allocation provided to the LP resultant of this proposal and LP proportionate trade fees. (“LP Terms”, applicable solely to Liquidity Provision Partners)
- If this proposal passes, GSR and Finlink will be appointed as primary Market Making Partners for the Hubble Exchange and as such are required to ensure, as a minimum level of compliance, that markets remain efficient for liquidity providers and limit to a reasonable extent the amount of impermanent loss liquidity providers are subject to, pending LP distribution of funds into the Hubble DAO liquidity bucket. Determinations of reasonableness shall be rendered between liquidity providers and GSR on an as-needed and time-to-time basis. As a show of good faith and trust in the Hubble protocol, GSR and Finlink have pledged a monetary investment into the platform. In accordance with the terms listed herein, should GSR or Finlink fail their obligations due their monetary investment and agreement with Hubble DAO pursuant to this agreement shall be null and void, with the investment monies being returned to the defaulting partner, and any allocation provided to the defaulting partner shall be forfeited back to the Hubble DAO. (“MM Terms”, applicable solely to Market Making Partners)
4. Declarations of Strategic Partners
- All strategic partners understand and agree that Hubble DAO tokens offered at TGE represent solely tools of governance in the experimental Hubble DAO governance system, and do not constitute or grant any economic or ownership interests in any form whatsoever. Any references herein to investment is solely in regards to investment in the overarching governance structure of the protocol, and is not an investment as broadly defined as an expectation of future return via acquisition of the governance tokens.
5. Variation and Termination
- In the event this proposal passes, it cannot be varied or terminated either in whole nor in part by future proposals.
Composition of Current Strategic Partner Ecosystem
Please see the following tables for an overview of the firms, protocols and agents that have been chosen for the inaugural round of chosen strategic partners, alongside their total contribution. Minor stakeholders below a $50,000 threshold have been collated under the broad classification as a ‘General Angel’.
Strategic Partners; Active Strategic Partners
|Name of Firm/Protocol||Contribution Amount||Ecosystem Role|
|Framework Ventures||$1,250,000||Lead Partner (Categorized as Residual Strategic Partner in relation to proposal terms above)|
|Ava Labs||$150,000||Ecosystem Partner (Categorized as Residual Strategic Partner in relation to proposal terms above)|
|Trader Joe||$100,000||Ecosystem Partner (Categorized as Residual Strategic Partner in relation to proposal terms above)|
|Lemniscap||$500,000||Liquidity Provision Partner (to contribute 5x Contribution Amount pursuant to LPP responsibilities, amounting to $2,500,000 in provided liquidity)|
|GSR||$500,000||Market Making Partner|
|FinLink||$200,000||Market Making Partner|
Strategic Partners; Liquidity Provision Angels
Angels listed below have pledged 5x their initial capital provision as additional capital for liquidity purposes, subject to the LP Terms. Liquidity Provision Angels are Categorized as Liquidity Provision Partners in relation to proposal terms above.
|Name of Liquidity Provision Angel||Contribution Amount||Liquidity Contribution Amount (5x the Contribution Amount)|
Total Liquidity Provision from partnered liquidity providers: $3,750,000, the sum of Liquidity Provision Partner (Lemniscap) contributed amounts and Liquidity Angels (Farid, Mark and Sid) contributed amounts with the herein stipulated condition requiring 5x the Contribution Amount to a Liquidity Contribution Amount contribution to the liquidity bucket.
Strategic Partners; General Angels
General Angels are defined broadly as minor stakeholders participating in the Strategic Partnership ecosystem by virtue of their value-add. The summary list of General Angels each with minor contributions below the $50,000 threshold definition of minor stakeholder aforementioned are as follows:
Nick (ParaFi), Sergei (CIS), Darryl AKA Wangarian (Defiance), Samneet (Ledger Prime), Adam C (ParaFi), Phillip Liu (Ava Labs), Joe (Ava), Hubble DAO Mod Guild, Ashish (Ex Polygon), Sid (Ex Polygon) Sayli, Keyur, Calvin , George, DeFiBrian and 0xRafi.
The contribution collated among the individuals listed above sum to $350,000.
General Angels are classified as Residual Strategic Partners in relation to the proposal terms above.
Background to Strategic Partner Onboarding Proposal
The strategic partners herein vary from Avalanche ecosystem giants to specialized market makers, each of which provide a significant value add to Hubble Exchange. These strategic partners provide the capacity for laying the foundation of the exchange in ensuring sufficient liquidity, runway and efficient markets for the exchange, alongside a number of future potential partnership opportunities. Each of the proposed Strategic Partners were curated following a process of due diligence for the purpose of protocol growth.
Appointing Multi-Sig Signers Proposal
This proposal seeks to appoint the following individuals from the Hubble Community to become multi-sig signers to the DAO’s two treasury multisig wallets, one on Ethereum and one on Avalanche.
- Dorlanz (0xDB12968480d58237f96FF1Bb6f6dD9bB2b3b4Ef1)
- kepler#5783 (0xF04600C15A37d9369b9a75e2A14195Aaa743508d)
- Cryptofish (0x5D3e4C0FE11e0aE4c32F0FF74B4544C49538AC61)
- Darryl (0xAd5553945d7906aC295bEF282338419d72e44E79)
- Siddharth (0xA55d93AfA0ec9d3d3304361aA030d9F05aAAE3c6)
The threshold for approvals is 3 out of 5.
This proposal seeks to receive approval for two multisigs: one on Ethereum and one on Avalanche. Both multisigs will have the same signers listed above.
The multisig treasury addresses pursuant to this proposal are as follows:
- Eth Multi-Sig Hubble DAO Treasury Address: 0xA2aB2DebcE1e7d5977D3027447c472a521CfEF52
- Avax Multi-Sig Hubble DAO Treasury Address: 0x97F43806F95e15Bc73d388c120eE514F3A7Bea3E
Currently, off-ramp services and service providers have higher acceptability for funds on ETH. Therefore, keeping the DAO’s funds primarily on ETH and keeping some funds on an Avalanche multisig will reduce operational overhead on the DAO in bridging funds.
This proposal DOES NOT grant signers authority over the composition of the Multisig group – any changes to Multisig signers will need to be approved by the DAO. This will occur through separate proposals in the future if a new Multsig signer needs to be approved or a current one removed. Signers may remove themselves from the multisig voluntarily, provided a replacement is approved through governance.
Background of Multi-Sig Proposal
The Multsig is an approach to ensure safety of funds and works towards the reduction of chances for fraudulent spending. Through involving multiple individuals in the securing of funds, this lowers the risk of a single point of failure (SPOF). A multisig requires consensus between signers to execute transactions as decided by governance. In this multisig, 3 signers out of 5 must approve a transaction for it to be executed.
This proposal is based on TracerDAO’s Treasury Diversification Proposal.
Copyright and related rights waived via CC0.