UMAMI DAO Proposal #1: Mint UMAMI For OTC Raise & Set 2.5m Max Supply
Hi there Umamies.
Umami is working on an array of exciting new products that it will roll out in the coming weeks. The new products will greatly enhance Umami’s fee revenue & returns for UMAMI holders and add value to the Arbitrum DeFi ecosystem.
At the same time, Umami is working to initiate a thorough code audit to enhance security for its community.
These initiatives require significant OpEx. The Umami team proposes that Umami mints additional UMAMI tokens for a capital raising “war chest” & sets a max supply of 2.5m UMAMI, after which no more UMAMI tokens will be minted.
Upcoming Audit & Major Product Launches
The upcoming product launches include:
- A high-yielding, delta neutral vault (approx. ~30% APR on USDC).
- More than half-a-dozen new autocompounders covering farms & vaults of projects including JONES DAO, Dopex & Sperax, as well as several Balancer LPs.
Longer term, Umami plans to build even more vaults, autocompounders & other DeFi products, generating fee revenue & yield for UMAMI holders & supporting its partners across Arbitrum.
The new products will make use of APIs from Socket & Banxa, which allow users to ape into Umami’s strategies from any chain or even from fiat accounts in a single txn. We expect these new products to greatly enhance TVL for Umami & Arbis and onboard new users to Arbitrum.
At the same time, Umami is preparing to enhance its security by enlisting a highly reputable firm for a formal audit. Umami’s team has discussed an audit with Trail of Bits & will be meeting with other audit firms shortly. The team’s goal is to complete an audit as soon as possible.
Upcoming OTC Raise
All of these important new initiatives require capital. To that end, Umami plans to do an OTC capital raise in the coming weeks to raise anything from $1m to $5m in PoL (Protocol-owned Liquidity).
Participation in the initial OTC round will be whitelisted. The whitelist will include members of the Umami/Arbi’s community, partner projects & their communities & potentially a small group of on-chain, DeFi-native VC firms.
The proceeds will be used to cover OpEx, including comp & the cost of an audit. The PoL will also be used to provide liquidity to Umami’s new vault, its growing array of Uni v3 LPs & its various treasury deployments.
Umami will post all of its Gnosis safe addresses for public review & share detailed monthly treasury updates with the community, including OpEx breakdowns.
We propose that Umami comp OTC investors with 3 month timelocked cmUMAMI tokens, which can be staked for ARBIS rewards upon vesting. The overall amount of capital raised will vary based on the TWAP of UMAMI during the 7-days prior to the OTC transaction.
The higher the TWAP, the more PoL Umami will aim to raise during the OTC. Umami will share a detailed term sheet ahead of the OTC raise for community review.
All subsequent capital raises, whether via bonding or OTC, will require community signoff & a detailed public term sheet prior to the raise. That means that no significant amounts of UMAMI will enter circulating supply without signoff from the community.
Mint UMAMI Up To 2.5m Max Supply
In the spirit of Umami’s ongoing DAO transition, the team wants to solicit the community’s feedback.
The Umami team is seeking community approval for a mint of additional UMAMI up to a max supply of 2.5m, with some used for PoL deployments & some for OpEx.
Importantly, following the mint, Umami will remove its multisig’s ability to mint more UMAMI tokens, creating a permanent Max Supply of UMAMI.
We propose the following approach:
- Umami mints UMAMI tokens up to 2.5m total supply → new max supply; “mint” admin sent to zero address so that no further UMAMI can be minted
Minted UMAMI tokenomics to be as follows:
- ~375k (15% of Total Supply) set aside for current & future team/contributor comp & other OpEx
- ~75k-250k for upcoming OTC capital raise (w/ goal of raising ~$1-$5m)
- ~1.5m for “war chest”: future capital raises, LP liquidity, future OpEx etc.
- mUMAMI/cmUMAMI will have voting rights in Umami’s DAO via snapshots
The Umami team will post a formal snapshot for the community in the next 1–2 weeks. We propose that votes be given to mUMAMI & cmUMAMI holders (including those who have staked their cmUMAMI for ARBIS rewards).
We appreciate all of you & are excited for Umami’s bright future!