Summary
The purpose of this proposal is to establish a clear baseline strategy for the Hifi DAO to ensure stability and clarity in the absence of any other viable alternatives. This includes financial resource allocation, collateral updates, Decentralized Exchange liquidity efforts, and provisions for a potential future wind-down.
Motivation
Given recent uncertainties, it is prudent for the DAO to adopt a fallback strategy. This baseline plan will:
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Reduce unnecessary expenses and distractions.
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Ensure that outstanding obligations are met responsibly.
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Provide durable liquidity on a decentralized exchange.
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Clearly document procedures in the event of an eventual protocol wind-down.
This plan is a prudent measure rather than advocacy for protocol closure, offering breathing room for the community to explore alternative paths.
Specification
The proposal includes the following actions:
1. Deployment of a New Lending Market:
- Deploy a new lending market expiring on March 27, 2026.
2. Collateral Management:
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Remove $SHEETp as supported collateral.
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Sunset support for the PooledNFT service, transitioning to withdrawal-only mode.
3. Community-led IP Breakoff:
- Approve community-led separation of the SheetHeads and PawnBots IP and digital assets, assigning these rights specifically to community members @Hollywood41 and @Mainbrain_.
4. Essential Services Allocation:
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Allocate 800,000 USDC from protocol-owned liquidity for essential services through March 27, 2026.
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Services explicitly covered include DAO administration, accounting, and technical infrastructure maintenance.
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Exclude new marketing initiatives and product development.
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Nullify existing agreements under HIP-15 and reduce the core team size accordingly.
5. Decentralized Exchange Liquidity:
- Allocate 200,000 USDC and $200,000 worth of HIFI tokens from existing reserves to provide liquidity for a HIFI/USDC market on Uniswap.
6. Wind-down Documentation:
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In case of final wind-down, all HIFI tokens will be burned.
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Remaining protocol-owned assets will be liquidated into ETH, and proceeds distributed pro-rata among HIFI holders.
Continuing Operations:
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Maintain support for ETH and existing RWAs as collateral.
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Continue compounding earned interest within the protocol.
Action Items
Upon approval:
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Execute deployment of the new lending market.
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Begin removal of $SHEETp collateral and sunset procedures for PooledNFT.
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Officially extend rights of SheetHeads and PawnBots to designated community members.
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Allocate specified financial resources for essential services and decentralized liquidity.
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Enter into updated service agreement with core team.
