[Execution] HIP 29: Deposit funds of the DAO to the UBI Burning Vaults

Proof of Humanity
1

Hi everyone, after thorough testing of the UBI Burning Vaults during 1 year of activity and successfully overcoming how to harvest yield and burn UBI without the risk of MEV, I think we are good now to put the funds of the DAO to work for us and generate some yield + burn some UBI with it.

As it has been voted on HIP 29, I have prepared 2 tx to perform this action on the PoH Governor:

  1. Tx1: HIP-29: Deposit funds of the DAO to the UBI Burning Vaults - Approve WETH balance to be used in Vault

    • Contract Address: 0xc02aaa39b223fe8d0a0e5c4f27ead9083c756cc2
      // This is the WETH token contract

    • Value: 0

    • Data Input: 0x095ea7b30000000000000000000000002147935d9739da4e691b8ae2e1437492a394ebf5000000000000000000000000000000000000000000000002851a353e80354cdc

    • Decoded Contract Input:
      approve(guy : 0x2147935D9739da4E691b8Ae2e1437492A394eBf5,wad : 46484525046413216988)
      // Approves the UBI WETH Vault contract to use the available WETH balance of the DAO

  2. Tx2: HIP-29: Deposit funds of the DAO to the UBI Burning Vaults — Step 2: Deposit WETH on Vault

    • Contract Address: 0x2147935d9739da4e691b8ae2e1437492a394ebf5
       // This is the UBI WETH Vault

    • Value: 0

    • Data Input: 0xb6b55f25000000000000000000000000000000000000000000000002851a353e80354cdc

    • Decoded Contract Input:
      deposit(_amount : 46484525046413216988)
      // Deposits the available balance of WETH on the UBI WETH Vault

If someone from the Kleros Team as it was suggested to me by @0xjean.eth can help me out confirming this tickets are okay, I would greatly appreciate it. Also any other observations please let me know.

7 Likes
2

Hi! I’ve made a manually cross-check of the bytecode data and it’s ok. Details below.

Tx1
The PoH Governor has 46.484525046413216988 WETH. You can check it on https://etherscan.io/token/0xc02aaa39b223fe8d0a0e5c4f27ead9083c756cc2?a=0x327a29fce0a6490e4236240be176daa282eccfdf. The PoH Governor has to approve the use of that funds directly with WETH Contract.

I take as reference one of the last transactions of approve in WETH https://etherscan.io/tx/0x469830011b1c2141aba46ce144f9df6d4de0e929e260a786a91026dcbb07c8c4

Function: approve(address guy, uint256 wad)
MethodID: 0x095ea7b3
[0]:  00000000000000000000000068b3465833fb72a70ecdf485e0e4c7bd8665fc45
[1]:  000000000000000000000000000000000000000000000000b1d1fb87818f4a20

Result: 0x095ea7b300000000000000000000000068b3465833fb72a70ecdf485e0e4c7bd8665fc45000000000000000000000000000000000000000000000000b1d1fb87818f4a20

In this case is the same method but the guy is ubiWETH vault (0x2147935d9739da4e691b8ae2e1437492a394ebf5) and wad (the amount) is 46484525046413216988.

Result: 
0x095ea7b30000000000000000000000002147935d9739da4e691b8ae2e1437492a394ebf5000000000000000000000000000000000000000000000002851a353e80354cdc

(the same in the HIP)

Tx2
After that approval, we need to deposit the funds.

I take as reference one of the last transactions of deposit in the ubiWETH vault (https://etherscan.io/tx/0x516b1c102aae53b3553a6a9c947fe238d45cdf1ffc63fb47eb7eae8753ea45d8)

Function: deposit(uint256 vowID) ***
MethodID: 0xb6b55f25
[0]:  000000000000000000000000000000000000000000000000048efed1d3d20000

Result: 0xb6b55f25000000000000000000000000000000000000000000000000048efed1d3d20000

In this case, the deposit amount is the 46.484525046413216988 WETH . So, result:

0xb6b55f25000000000000000000000000000000000000000000000002851a353e80354cdc

(the same in the hip)

1 Like
3

The txs data looks good to me.

1 Like
4

The vaults right now have an APY of 0.39%.

It might be a better idea to stake the same amount in LIDO instead, which has right now 10x that return (3.9%). Or maybe buy stETH with it if we are willing to take the risk, since it has a discount right now because of the uncertainty related to the Merge.

5

The APY fluctuares on that vault over the year, but I agree it’s a bit low right now. Will try to reach out to Emiliano Bonassi and check if there are any better alternatives for ETH that we can consider… specially taking into consideration that PoS ETH offers at least 4% APY.

That looks good… but the purpose of the vaults is also to burn UBI with the yield. Maybe we can look at other systems that enable the use of custom strategies? Or you suggest that we do manual burns we can vote for using the Governor?

Are there any defi experts around here?