Proposal: Using Enzyme Finance for asset management

The partnership with Enzyme Finance marks the next step in increasing the yield for the capital providers and the growth of the protocol (https://link.medium.com/3GakQqq7Qfb).

Using Enzyme Finance enables Unslashed to do the following:

Offer higher yields to Capital Suppliers, on top of the Capital Mining rewards and the premiums earned in ETH. Investing the collateral could allow a substantial increase in yield in a sustainable fashion, which helps us grow the capital and increase the amount of coverage we can provide.

Empowers Unslashed by enabling them to Go-to-market with a secure and sophisticated product in a fraction of the time. By outsourcing the asset management layer, the Unslashed developers can focus on the core products. Using Enzyme Finance allows us to focus on growth and market share without the burden of running an asset management layer and its maintenance /security considerations.

The trustless bridge to move the asset between Unslashed and Enzyme has already been build and audited by Chainsecurity.

All that is left is for the DAO to vote on this proposal.

Before we move to an official vote please fill in the poll and let us know what you think of the proposal.

Should we use Enzyme Finance for asset management?

  • Yes
  • No

0 voters

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I think it’s a great idea!

Awesome, adding a link to the official announcement for reference: https://link.medium.com/3GakQqq7Qfb

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As I understand it this does add another layer of risk for capital providers but higher yield and fresh capital is strongly needed and the risk added is rather small.

So I am in favour of this proposal.

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100% for this idea. I think it provides flexibility and multiple benefits!

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Highly in favor. Need to up that TVL baby!

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In favour also.

The questions that are yet to be discussed are:
1 - What strategies to use
2 - What to do with the profits (i…e: how to distribute them and how often, buybacks, etc)
3 - Will Enzyme incentivise the strategies used by Unslashed?

Although those are for another day :wink:

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Great initiative. Thanks @Toljona

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I posted this is discord, but figured the forum is the more appropriate place.

is there a concern that if we both provide cover on enzyme AND use them for asset managing the float:

i.e if there is a black swan scenario where we cannot pay out claims because a smart contract exploit happened on enzyme… then unslashed’s float is also tied up in the same exploit, so the eth cannot be accessed or got hacked or whatever.

i know enzyme is very proven, has been around for a while, etc

but still - to me if they are the asset manager for the pool of funds that would be used to pay out claims, then we should not provide cover there

Or maybe set aside the eth that’s used for cover on Enzyme and provide to a different asset manager or something.

In any case, the worst situation that an insurance provider could be in is unable to pay out claims - and while i voted yes on this proposal, its worth thinking about the fact that if sth goes wrong with enzyme, unslashed would be in that exact situation.

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Also copy/pasting my answers from Discord here :slight_smile:

  • I agree, that’s why the exposure we will have to enzyme is limited (amount of insurance we will sell) + we are likely to move this policy to another bucket afterwards

  • the moment there would be an issue with Enzyme, we would just stop receiving premiums - the bucket can not be paid premiums while at the same time not having the funds to pay out a claim …

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Awesome, as long as it’s been though about :+1:

Moving policy to another bucket makes a lot of sense.

Appreciate the reply

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