0x18e653fd…ef6esent to0xcdb9f8f9…a786·#23,183,771·0x57e87b3c…46a19b
# Loot Treasury Proposal
Loot Treasury Proposal
RoyaltyDAO Prop
Preamble
The RoyaltyDAO funds have been in custody of RealmsDAO for over a year. These funds have remained stagnant being diluted against the market. This proposal wishes to activate these funds whilst also creating deep alignment between RoyaltyDAO and RealmsDAO.
Summary
Everything Biblio has done has carried the Loot torch, funding and aligning many studios and teams to carry the torch of Loot. On top of that, the DAO saved funds that were about to be pillaged, hence the capital currently held by RealmsDAO.
All of this has been done with the LORDS token, which has faced immense sell pressure as it has been distributed to builders to keep building Loot.
A general consensus emerged around a minimally invasive, low-risk proposal: park the ETH in yield-bearing protocol and use only the generated yield estimated at ~$60k/month for targeted initiatives such as LORDS token buybacks.
LORDS buybacks benefit builders throughout the ecosystem as many builders hold significant amounts of LORDS, extending runways while preserving the principal and giving LootDAO flexibility to re-evaluate later.
Execution
We have established 3 rules to this proposal:
1. Don’t dip into the principal until further discussion and proposal.
2. Because the Realms DAO has provided a home for this capital and continues to help custody it there’s a mutually beneficial opportunity to use the yield for market‑buying LORDS.
3. Don’t change voting power.
We will do a 50:50 split between 2 different low-risk yield platforms. Two that are very well established Ethereum L1 protocols and one that is Starknet based. All are audited thoroughly and capital is split between multiple protocols for added security.
Ether.fi: Ether.fi is a non-custodial, user-controlled liquid restaking protocol with over $5B in TVL, offering strong decentralization and audited security.
Aave: Aave is a decentralized, non‑custodial liquidity protocol that benefits from extensive multi‑audited and formally verified smart contracts, a dedicated bug bounty program, decentralized Chainlink oracles, robust liquidation parameters, and an umbrella insolvency backstop.
Yield from Ether.fi (~2.94% APY):
Deployment Link: https://www.ether.fi/app/weeth
Market Breakdown: defillama.com/yields?project=ether.fi%20Stake
Yield from Aave (~2.75%):
Deployment link: app.aave.com/reserve-overview/?underlyingAsset=0xc02aaa39b223fe8d0a0e5c4f27ead9083c756cc2&marketName=proto_lido_v3
Market Link: defillama.com/yields/pool/ef8c5c38-6a41-4383-9dc8-6fb31e69a0c9
This proposal shows an annual yield of approximately 60k USD. You can find a summary of yield - Yield Estimates (https://docs.google.com/spreadsheets/d/1CC4XrSY5g9A2xU8UQnDeVpI6NOKTotYGHFgEuuuE-lM/edit?usp=sharing).
All of the yield will be utilised to buy $LORDS on a manual routine schedule within wallets:
Ethereum L1 Wallet: https://etherscan.io/address/0xa8e6efaf015d424c626cf3c23546fcb3bd2c9f1a
Multisig L1 Wallet: TO BE CREATED
Multisig L2 Wallet: TO BE CREATED
Each purchase of LORDS will be on L2, the most liquid market of LORDS. Yield will be DCA’d to reduce slippage and burn as many LORDS as possible. Duration of the DCA will be at the discretion of the executor.
DCA using Ekubo: app.ekubo.org/dca?inputCurrency=ETH&outputCurrency=LORDS
Multisig
The execution of this strategy will be completed utilising a ⅗ multisig. This will utilise the 3 members of the ecosystem team (Calc, Squid, Nejc), m0nk.eth & Recipromancer.
All funds including all yield will remain in this multisig up until a vote has been passed from RoyaltyDAO, assuming no hacks or very clear bad actor attacks e.g the recent quorum attack on RoyaltyDAO.