Concave 🤝 Procave

Apr 17, 2023

We appreciate the proposal for addressing Concave's challenges and are pleased to see that the miners agree with many of the proposed changes. However, while we agree with the general philosophy of the proposal, there are a few points on which we disagree with the proposed solution.

For instance, while the proposal's single KPI for CNV to trade above assets is intriguing, we believe it deviates from industry standards. Without an option for redeemability on the underlying at any given time, there will be a market-priced uncertainty discount that encompasses factors such as future assets market value, the likelihood of future redemptions or other mechanisms to keep price in line with "backing," and the delivery of future value (which is in itself discounted). In other words, since there's no method for market actors to engage in hard arbitrage, only risk arbitrageurs will remain.

We firmly believe that the SMART goals and OKRs derived from them should be used as the primary metrics to assess co-op performance. These objectives and key results establish a solid baseline for revenue to be returned to stakeholders and provide a strong foundation for the protocol to indirectly achieve the single KPI proposed. These goals and OKRs have been meticulously crafted to align with the co-op's vision and mission, and they function as a guide to ensure that our projects and initiatives stay on track.

If these goals are met, it is reasonable to anticipate that the token price will reflect those efforts and begin to factor in longer-term potential, which we feel a TWAP will not adequately reflect within six months of work. We can certainly revisit utilizing such a metric once the general sentiment around Concave has shifted, but until then, it will not accurately reflect Co-Op performance. However, revenue distributed through airdrops from the above goals will.

Furthermore, in our commitment to transparency and promoting an open dialogue with our stakeholders, we have had to revise the initially proposed SMART goals and reorganize after taking into account community feedback to provide more clarity on the Co-Op's current objectives.

While the core substance of these goals remains unchanged, there are a few notable differences, such as the absence of business development goals. These changes are primarily driven by the wider Co-Op's decision to undergo additional organizational changes at this time, despite our unwavering confidence in our ability to achieve all of the specified goals within the specified timeframe.

  • The Business Development team is being dissolved. Although we have no doubt in their (proven) ability to raise funds and invest them into projects that are highly accretive to all holders, we understand that current stakeholders of Concave do not have the long-term appetite they once had. Due to this, the (former) partnerships and marketing teams will be given the month to wrap up any outstanding obligations to existing partners in order to ensure a smooth transition to the remaining Co-Op.

With that said, the final iteration of Concave’s goals with an end date of December 1st, 2023 are as follows:

  1. Design, develop, and release a Binary Options Platform.
  2. Design, develop, and release an Insurance Derivatives Platform to testnet.
  3. Develop and release an internal MEV Application.
  4. Achieve a minimum ROI of 15% through effective treasury management practices.
  5. Achieve $5 million in revenue from short-term activities.
  6. Increase user engagement metrics within the Concave Discord server to be measured by user message counts across all active discussion channels from a current rolling average of 1,614 to no less than 6,456.
  7. Increase ConcaveFi Twitter impression counts from the current rolling average of 31,266 to no less than 93,798.

Regarding the operational spending limit, we acknowledge the importance of setting a cap on the amount of allocations paid out, as specified in the SMART goals. It's possible that this may have been unclear in the initial iteration, but to clarify, Concave commits to maintaining an OpEx spending rate of less than $1.05M over the next 6 months.

However, we do not support the idea of transferring funds from the Concave treasury to the Co-Op treasury. Since its inception, we have maintained that only funds raised from the BBT Seed Round would be used to compensate Co-Op builders. We believe that deviating from this process before the organic growth of the treasury through bonding and other revenue streams sets a dangerous precedent, whereby stakeholders may accuse us of siphoning miner-sourced funds for allocations. We want to reiterate that under no circumstances will funds sourced from the miners be used for allocations.

Does this mean that Concave will continue to pay its members to underperform and fail to deliver viable products to the market? Absolutely not. We remain committed to delivering high-quality products to the market and holding our members accountable for meeting their goals and objectives.

Concave agrees to hold ourselves accountable to you, the stakeholders. The objective of creating the SMART goals was to develop OKRs that would be strictly adhered to as an organization. As we have rejected the TWAP metric, the Co-Op instead will measure our success off of the completion of the goals set forth, utilizing a point-based system to track progress made. As such:

  • Binary Options Platform: 0-25 Points
  • Insurance Derivatives Platform: 0-25 Points
  • MEV Alpha: 0-25 Points
  • 15% Treasury ROI: 0-25 Points
  • $5 million in cash receipts: 0-25 Points
  • Discord Engagement: 0-25 Points
  • Twitter Engagement: 0-25 Points

To clarify the criteria for awarding points for the SMART goals, we have established specific guidelines. Development efforts will be assessed based on the percentage of completion of the Jira epic, while ROI metrics will be evaluated based on the percentage of ROI achieved. Cash receipts will be awarded based on the percentage of the $5 million goal attained, and engagement metrics will be assessed based on the percentage increase in average engagement.

To achieve all SMART goals, a total of 175 points will be available. We have set the passing threshold at 75%, which means that Concave must earn at least 132 points. If the Co-Op fails to reach this threshold, the community will vote on whether to proceed with the proposed liquidation.

The liquidation process will remain largely as proposed, with a few minor changes. Liquid assets will be distributed via the standardized airdrop method, and illiquid assets will be sold transparently through OTC. Any assets that cannot be sold in this manner will be presented to the community for a final decision on how to proceed. VoKe will oversee this process at no cost to the treasury.

We believe that this framework will allow us to demonstrate our value to stakeholders while remaining aligned with the community's goals and vision. To improve communication, we commit to meeting reporting requirements, including monthly office hours and AMAs, sharing public reports on our progress through Jira insights and treasury reporting data, and providing insights into metrics used by internal departments and Co-Op leadership as requested by the community. We will also release public reports detailing the progress made in department and individual contributor metrics on a team-by-team basis. We understand that past communication may have lacked clarity, but we are committed to transparency and look forward to working together to achieve our shared objectives.

Supplementary OKRs

Design Team

Objective: Enhance user experience and satisfaction by delivering intuitive, functional, and visually appealing UI designs.

  • Key Result: Achieve a minimum average user satisfaction rating of 4/5 for UI designs across all products and platforms within the next 6 months.
  • Key Result: Implement user feedback-driven improvements for at least 3 existing UI elements or features within the next 6 months.
  • Key Result: Conduct bi-monthly user testing sessions to gather actionable insights and validate design decisions, with at least 80% positive feedback on proposed changes.
  • Key Result: Functional Figma/design documents should be provided such that Engineering teams have a concrete understanding of the end-to-end UI/UX flow.

Objective: Efficiently deliver high-quality UI designs for all scoped dApps, ensuring alignment with product requirements and engineering timelines.

  • Key Result: Finalized UI designs for Contrast product within the next month, meeting all design specifications and adhering to product requirements.
  • Key Result: Provide draft UI designs for the Concord next month, ensuring the Engineering team can begin to complete their tasks.
  • Key Result: Provide finalized UI designs for Concord within the next 2 months, ensuring seamless integration with the development process.

Objective: Continuously expand the design team's skills and expertise in UI and graphic design.

  • Key Result: Each team member completes at least 1 skill-enhancing activity (e.g., online course, workshop, or conference) within the next 6 months to stay current with industry trends and best practices.
  • Key Result: Implement at least 2 new design tools or techniques within the team's workflow to improve efficiency and design quality.
  • Key Result: Share learnings and insights from skill-enhancing activities with the broader team through quarterly presentations or demos to foster a culture of continuous improvement.

Engineering Team

Objective: Design, develop, and release a user-friendly and robust Binary Options platform within the next 3 months.

  • Key Result: Complete the design and development of the Binary Options platform's core functionalities within the first month.
  • Key Result: Conduct thorough testing and address any identified issues, ensuring a stable and secure platform by the end of month 2.
  • Key Result: Successfully launch the Binary Options platform by the end of month 3, with at least 90% uptime and positive initial user feedback.

Objective: Design, develop, and release an innovative Insurance Derivatives platform within the next 6 months.

  • Key Result: Complete the design and development of the Insurance Derivatives platform's core functionalities within the first 4 months.
  • Key Result: Conduct comprehensive testing and address any identified issues, ensuring a reliable and secure platform by the end of month 5.
  • Key Result: Have   Insurance Derivatives platform ready for launch by the end of month 6, with at least 90% uptime and positive initial user feedback.

Objective: Develop and launch a pilot/alpha version of the MEV solution within the next 6 months.

  • Key Result: Complete the design and development of the core functionalities of the MEV pilot/alpha within the first 4 months.
  • Key Result: Conduct thorough testing and address any identified issues, ensuring a stable and secure MEV pilot/alpha by the end of month 5.
  • Key Result: Successfully launch the MEV pilot/alpha by the end of month 6, with positive initial Co-Op feedback and measurable improvements in platform efficiency.

Asset Management Team

Objective:  Generate a minimum ROI of 15% through effective active treasury management practices.

  • Key Result: Increase the liquid cash standing of the Co-Op by 15% in the next 6 months by optimizing the liquid and non-liquid portfolio allocation.
  • Key Result: Reduce short-term liabilities of the Co-Op by 10% in the next 6 months by implementing a more efficient cash flow management system.
  • Key Result: Achieve a Sharpe ratio of 1.2 for the Co-Op's portfolio in the next 6 months by optimizing the risk-adjusted returns and minimizing the volatility.

  • Key Result: Develop a comprehensive portfolio management report with actionable insights and recommendations for the Co-Op's stakeholders  monthly to ensure continuous improvement and alignment with the overall business strategy.

Objective: Increase the efficiency/profitability of the Co-Op's portfolio strategies by implementing automation-assisted idea generation and taking advantage of market inefficiencies.

  • Key Result: Develop an automated or automation-assisted idea generation system for the Co-Op's portfolio strategy within the next 3 months.
  • Key Result: Increase the profitability of the Co-Op's portfolio strategy by 10% in the next 6 months by taking advantage of market inefficiencies identified through the automated idea generation system.
  • Key Result: Reduce the portfolio turnover rate by 20% in the next 6 months by implementing a more systematic/data-driven portfolio management approach.
  • Key Result: Achieve a portfolio alpha of 1.2 in the next 12 months by optimizing the portfolio strategy with the help of the automated or automation-assisted idea generation system.
  • Key Result: Continuously iterate and implement the automated or automation-assisted idea generation system by implementing at least two major updates in the next 6 months.

Operations Team

Objective: Streamline internal operations and collaboration to enhance team productivity and project delivery.

  • Key Result: Implement a centralized project management tool and establish clear communication channels among the COO, Product Manager, and Project Manager.
  • Key Result: Reduce project delivery time by 20% within the next 6 months through improved coordination and resource allocation.
  • Key Result: Achieve a 90% satisfaction rate among team members regarding collaboration and internal processes.

Objective: Optimize virtual infrastructure management to ensure high performance, reliability, and security.

  • Key Result: Conduct a comprehensive audit of the current virtual infrastructure and identify areas for improvement, with recommendations presented to the team within 2 months.
  • Key Result: Maintain a 99.5% uptime for all virtual systems and services throughout the 6-month period.

Objective: Foster a culture of continuous learning and improvement within the Operations team.

  • Key Result: Identify and address skill gaps through targeted training and development initiatives for each team member, with a minimum of 1 skill-enhancing activity completed within the next 6 months.
  • Key Result: Establish a regular feedback and review process for the team, with at least 2 formal review sessions conducted within the next 6 months.
  • Key Result: Encourage knowledge sharing and cross-functional collaboration by organizing monthly team workshops or presentations on relevant topics.

Objective: Develop and execute a comprehensive risk management strategy for projects and overall operations.

  • Key Result: Identify potential risks and mitigation strategies for ongoing and upcoming projects, with a risk assessment report presented to the team within 2 months.
  • Key Result: Implement at least 3 risk mitigation actions within the next 6 months to minimize operational disruptions and project delays.
  • Key Result: Establish a proactive risk monitoring and reporting process, with regular updates provided to the team and relevant stakeholders.

Public Relations Team

Objective: Cultivate open and transparent communication with lsdCNV token holders to address concerns and foster trust.

  • Key Result: Expand to one additional dedicated communication channel for lsdCNV token holders to discuss concerns and receive updates.
  • Key Result: Host monthly Q&A sessions or AMAs with the core team to provide insights and address any fear, uncertainty, and disbelief.
  • Key Result: Publish bi-weekly or monthly project updates, including development progress, partnerships, and future plans, to keep token holders informed and engaged.

Objective: Implement a structured information release process to consistently share updates on product development, asset management, and co-op initiatives in a timely and efficient manner.

  • Key Result: Develop a comprehensive content calendar outlining the release schedule for announcements, progress reports, and other relevant information.
  • Key Result: Assign a dedicated team member or community manager to ensure timely and accurate dissemination of information across all relevant channels (e.g., social media, blog, email newsletter).
  • Key Result: Establish a clear internal communication protocol for discussing and reaching consensus on important updates and announcements, streamlining the decision-making process.

Objective: Expand social media presence by capitalizing on the information release process and data-driven insights while maintaining transparency and fostering community engagement.

  • Key Result: Achieve a 30% increase in social media followers across all platforms within the 6 months by consistently sharing valuable content, updates, and insights.
  • Key Result: Implement a data-driven social media strategy to identify optimal posting times, content types, and engagement tactics to maximize reach and growth.
  • Key Result: Host monthly office hours on community Discord/Twitter Spaces to discuss community feedback, address concerns, and explore high-level community proposals, fostering open communication and collaboration.