This page will be dedicated to documenting the inner workings of the dYdX Operations Trust (hereinafter referred to as the ‘Trust’), so as to ensure that the settlors of the Trust (i.e. all dYdX Token Holders), are adequately and accurately updated in relation to how the funds endowed in the OpsSubDAO and entrusted to the Trustees are utilised.
Keeping settlors updated in a trust is crucial to maintaining transparency and ensuring their peace of mind. By regularly communicating with settlors, the Enforcer can provide timely information about the trust's performance, financial activities, and any significant changes. This includes sharing financial statements, internal policies, internal procedures, conflict of interest checks per transaction (where necessary), and other relevant documents to keep the settlors informed about the Trust’s progress. Clear and effective communication fosters trust (no pun intended) and allows settlors to actively participate in the management of their funds, enabling them to share their thoughts and provide their input in relation to any matters they deem fit.
Enforcer’s Notes (i) (17/07/2023)
OTC deal; implemented a best-execution policy approach wherein Trustees had to necessarily obtain at least 2/3 OTC quotes so as to ensure that we get the best trade possible and thus, the best possible value, in our OTC Transaction.
We proceeded with Wintermute because after obtaining 5 quotes from notable OTC desks within the industry, theirs ended up being the best one. Naturally, as you all know, Callen (a fellow Trustee), is employed with Wintermute and thus, he was not permitted to be a signatory to this particular transaction due to the conflict of interest present.
Transaction wherein the corresponding USDC was received:(https://etherscan.io/tx/0x7cd37919f588b3546703515754285040082bfee711a5cf1aff6bbaf7955ac7e3).
The Enforcer will be drafting a written best execution policy which will be published in the Trust’s notion in the coming weeks.
Trust’s legal documentation.
The legal documents in relation to the Trust have all been finalised (Trust deed and Trust amendment instrument). You may notice that the Trust's Multi-Sig made a payment to Reverie in this regard. This was due to the fact that Reverie was onboarded with Ogier (the firm used for the drafting of the Trust's legal documentation), already and for efficiency's sake, Reverie paid the legal fees, and was then reimbursed by the Operations Trust. I assure you that, moving forward, the Operations Trust will have its own account with all independent contract (of a legal nature or otherwise), and payments will be made directly from this Trust. This was a one-off which will not happen again.
Update re. Independent Contractors.
As communicated by fellow Trustee Joanna Pope , the Trustees are now in the final stages of deciding upon the persons to undertake the respective roles currently being recruited for. From my end, there was no involvement in the interview process itself but rather, I assessed that the procedure undertaken for the candidates was consistent with all applicants. There will be some potential changes to the interview process (being discussed currently w/ Trustees). These changes will naturally be communicated and the interview process undertaken by Joanna and Callen will (following the finalisation of the hiring process), be made public for the community to assess and, hopefully, offer its insight in relation to improvements, optimisations and any iterations that would be ideal.
Outsourcing re. Legal/Consultancy Firms.
The Operations Trust will be looking for legal counsel so as to draft the necessary agreements that would be needed for independent contractors. In this regard, the same as in the OTC deal above applies i.e. I would need a 2/3 quote system with a decision being based not solely on the quotes, but also on the reputation of the firms involved. Naturally, I will not be involved whatsoever in the decision re. the firm of choice, my role is restricted to assessing that the necessary procedures are followed when acquiring services from external service providers so as to ensure that funds being spent are being spent in a responsible manner.
Legal Fees incurred (invoice date, 28th June 2023).
These are the fees incurred in relation to the Trust’s legal documentation as outlined above.
Professional services provided:
- drafting an instrument of appointment, retirement and continuation of trustees: £1,000
- drafting an instrument of retirement and appointment of enforcer: £850
- drafting an instrument of amendment: £850
- reviewing and commenting upon associated proposal: £550
Professional Fees - 6,964.91; Sundry Expenses - 164.13;
Net Total - 7,129.04;
Courtesy Discount - 2,861.78.
Gross Total - US$ 4,267.26.
Transaction wherein the corresponding USDC was paid to the service provider for the above-mentioned services:(https://etherscan.io/tx/0xd84954662e5d8c63c5c04be89b086c53b5362e918485050dcc0278d79a0538e4).
Fees incurred re. REAP Credit Card (https://reap.global/reap-card)
In light of the fact that this is the Trust’s Credit Card (and not a debit card), payments are made by the Trust following receipt of a monthly statement in relation to the sums paid from such Credit Card in the respective period (additional of any interest incurred on the credit used).
Balance due: USD 895.26 (sum to be paid);
Minimum payment: USD 250; and
Available credit: USD 588.74 (Cut off at 30/06/2023).
Transaction wherein the corresponding USDC was paid to the service provider for the above-mentioned services: (https://etherscan.io/tx/0x63a1546ff11250eb50f759b09f6dd9c6616da6d0ee71ef6183cd724ef157dbbb).
Enforcer’s Notes (ii) (12/08/2023)
Recruitment firm to aid in our efforts to hire a Site Reliability Engineer
A payment of 11,519 was made to Plexus (one of the most prominent web3 recruitment firms for tech-specific roles), to aid us in our efforts of recruiting an SRE. In this regard, we’re pleased to announce that we are already receiving candidates for the role from Plexus whose CVs are being vetted by the Trustees to assess whether they’ll proceed to interview-stage.
As an update on the SRE-specific roles, should we not manage to hire an SRE in the coming weeks, we will be exploring the service provider-avenue to perform this role. In addition, even following the hiring of the SRE, due to the extensive nature of the role, having an external SP on an on-call/on-request basis would also be beneficial so as to make sure we always have the necessary safeguards in place to ensure that it all goes smoothly pre and post launch. Test transaction of 1 USDC to the service provider’s wallet: (https://etherscan.io/tx/0x6606be641f24a53956a6def9d22a6fb00bb4049ec6d2c2b36659cb4f43954ba3)
Transaction wherein the corresponding USDC was paid to the service provider for the above-mentioned services: (https://etherscan.io/tx/0x9ee53f8c60fb6526901e6de5412c6a434e20b8f52bdd5f251e0bd019a823b300)
Drafting of independent contractor agreement for the Operations Lead
A deposit payment pre-delivery of the agreement was paid to BCAS for the drafting of the independent contractor agreement. Full payment of the remaining amount will be effected upon delivery of the agreement.
Conflict of Interest: Enforcer was employed with BCAS and disclosed this conflict of interest to the trustees. Naturally, as with all other engagements, a 2/3 quote system was implemented and the Trustees chose to proceed with BCAS following the assessment of the 3 quotes gathered and in consideration of BCAS’ expertise. Naturally, the Enforcer was not involved at any stage of the decision-making process for this engagement.
Transaction wherein the corresponding USDC was paid to the service provider for the above-mentioned services: (https://etherscan.io/tx/0x45846e380308c4f1363c6f011872df9920d202d98a9fd141d77320d85ad2c3a3)
First payments to Trustees and Enforcer
We have effected the first payment batches for the remuneration of the Trustees and Enforcer. You will see five (5) test transactions of 1 USDC to the wallets of the Trustees and the Enforcer:
This was then followed by the final payment to the Trustees and Enforcer following valid confirmation of the test transaction:
BCB Bank Account transfer
We’ve finally received access to our BCB account and are now working with them to get a % of our USDC converted to EUR. An initial payment of 6,038.54 was made to cover the business account setup fee and the administrative fee which is paid monthly (a pro-rata payment was effected re. July as we did not have it active for the entirety of the month).
Transaction wherein the corresponding USDC was paid to BCB for the above-mentioned services: (https://etherscan.io/tx/0x5cd9047be056b3c0c1776449bffa29dd2a69fc2a22e37456f15978b2628b8148)