Uniswap: 25M Community Analytics Fund

The main concept of the grant by Flipside is to:

  1. Establish a “No Negative Net UNI” ethos, whereby the initial grant amount is maintained
  2. Uses Uniswap’s own yield mechanisms to sustainably self-fund the program.
    It ensures assets remain close to the ecosystem itself, and can be monitored directly. It also sets up the long-term capacity for the program to fund itself.

Grant Request: 15M First Year, 10M Second Year.
The target yield is of 30% annually. Which $15M will generate approximately $2,250,000 in yield each year, or $187,500 per month, which 50% of this will be delivered to ecosystem community members as montlhy bounties.

Flipside’s value proposition begins with analytics, but its true purpose is to drive ecosystem acquisition and retention
The goals / expected returns are:
~ 900 new community members [acquisition] (Thanks to educational programs)
~ 49,500 UNI retained in ecosystem [retention] (By past retention rate of UNI on programs)
~ 350+ dashboards and visualizations [+premium interactive solutions] (Made by Flipside, Partners and Community.)

The other 50% or $187,500 Monthly is Flipside’s fee to operate the program.
Program costs are approximately $100k-$115k per month, excluding taxes. This includes:

Salaries:

  • One Data Engineer (100%)
  • One Data Scientists (100%)
  • One Full Stack Engineer (100%)
  • One Business Intelligence Analyst (100%)
  • One Community Manager (100%)
  • One Marketing Manager (100%)
  • One Content Manager (100%)
  • One Designer (50%)
  • One Product Manager (10%)
  • Head of Engineering (10%)
  • Head of Marketing (10%)
  • Head of Data Science (10%)
  • Head of Finance (10%)
  • Financial Controller (10%)

"At the $15M grant level, Flipside is operating at a near BreakEven margin. We are willing to operate at this level to prove the model in year 1 (note that we expect to compound our fees to generate additional yield, which should help us to mitigate margin pressure).

In year 2, with a $10M additional grant, Flipside’s margin would be able to increase to 18%."

Tech Infrastructure:
Additionally, it tncludes a 10% allocation of our projected infrastructure costs, node management (ETH), compute / storage needs (AWS), data warehousing (Snowflake) needs and a variety of other software / architecture tooling requirements to sustain and make the Flipside Velocity database freely available to analysts of all levels.

Investment Strategy

  • 100% of the UNI be deposited into AAVE protocol as collateral
  • Borrow against 50% of the collateral in the form of ETH
  • A DeFi Saver Smart Wallet will be used to manage the position
  • 50% of the borrowed ETH to be swapped into UNI, and both assets will be deposited as liquidity in the WETH-UNI 0.3% pool symmetrically
  • A custom Visor vault developed with Gamma Strategies will be used to manage the liquidity position.

Partnerships with Gamma Strategies and Visor Finance.
Target: 30% APY

Liquidations: They will be utilizing DefiSaver to automatically manage their leveraged position on AAVE. In the event of meaningful divergence between UNI and ETH prices, DefiSaver will minimize any risks of liquidation by optimizing for collateralization via programmatic debt paydown using AAVE’s flash loans.

Allocation Comittee: * Will Price / DeFi Citizen; Data Scientist

  • Nathan Howard , Index Coop
  • 2 Individuals from University Blockchain Orgs. To be Identified and Announced Post On-Chain Vote so as to not influence voting.
  • 3 Members of Flipside’s Team

Oversight Comittee

Transparency Dashboard: Tracking fund performance and transaction activities will be broadcast live via a custom dashboard for the Uniswap community.

Link: https://gov.uniswap.org/t/governance-proposal-up1-2-community-enabled-analytics/13760
Voting: https://app.uniswap.org/#/vote/1/2
Current Result: 43,62M UNI For / 46,98M UNI Against
Ending: 20th August 8:08 CEST

Thanks…we have voted AGAINST this proposal, and via Tweetstorm pointed out that:

1.) PowerPool is happy to manage the UNI grant for yield (it is what we do) and let Flipside, Dune and others propose projects and compete for bounties useful to active fund managers and end users alike. We too are big consumers of (UNI) fundamentals tracking to re-weight pools…

2.) PowerPool will launch an Ethereum DeFi pool (waiting on SNX’s sDEFI mirror token for the hedge). UNI is the biggest share, so we as activist fund managers will be already be managing the UNI for yield AND actively tracking fundamentals on holdings (bigger) than the grant.

At least everybody, Flipside, Dune, and various influencers now know who we are and what we do…please retweet.

I think the proposal could been better if had a different approach. It has good things though, but needs more clarity. Treasuries should be managed efficiently. Especialy Uniswaps one. They are targeting an steady 30% APY, which is not to conservative.
Also, Flipside is an analytics company. Being in charge of 25M is serious stuff. It doesnt have a track record to follow and after the Uni Educational Fund scandal, I don’t think and don’t want it to pass.

Flipside has pulled the proposal…I am in touch with Flipside, Dune and Uniswap on Twitter…this may be an opportunity for us, at least for some publicity…too bad we could not launch our ETHDEFI pool with a lot of UNI in it yet.

SparkDAO Meta-governance (you Furma) should complain to Uniswap on behalf of PowerPool for the lack of notice on this vote, and point out that as an asset manager we are keen to support analytics, but a different proposal is needed, and we are willing to help with it.

1 Like

UPDATE:
Uniswap Voting for this proposal has been cancelled as Flipside dropped below the minimum 2.5M UNI required. That happened because of Index Coop. Which they Delegated UNI to Flipside in support for the proposal, and in an human error, were delegated back to Index for voting in subsecuent proposals, as stated by Index Coop.
Tally, a governance platform, had a bug that made cast NO votes for YES votes. This caused at least 6.5M UNI fraudulent votes.
Post Mortem from the proposer, CEO of Flipside.