Policy plays an important role in the FloorDAO protocol. As a recap, FloorDAO uses the Olympus mechanics of bonding and rebasing; the former to acquire assets, and the latter to reward stakers with yield from protocol growth. Properly managing each of the available policy levers requires careful simulation and consideration. Here, we propose a policy framework, drawing inspiration from Olympus while including FloorDAO particulars.
Similar to Olympus, the objective of our policy framework is to outline
- Which policy decisions require a governance vote, and
- Which technical levers are available for the Policy team to adjust
General principles for bonds:
- Policy team should closely monitor 1) the Reward Rate, 2) the yield from deployed strategies, and 3) the potential yield from new strategies, and launch or deprecate bonds to sustainably grow the treasury
- Policy should closely monitor FLOOR liquidity and launch or deprecate liquidity bonds to maintain sufficient liquidity