# stETH Peg Protection Execution

This proposal will execute the underlying effort of the successfully passed proposal to obtain [stETH Peg Protection](https://nouns.wtf/vote/313). 

As a reminder, this effort required two steps: 

- ************Part 1 (completed):************ Audit the helper contracts that enable the DAO to execute transactions on L2 and purchase protection using the already existing and audited Nouns [token-buyer](https://github.com/nounsDAO/token-buyer) contracts ([OptimismL1Proxy](https://github.com/portaldiscovery/optimism-cross-chain-proxy) and [CozyMultiOraclePriceFeed](https://github.com/portaldiscovery/cozy-v2-token-buyer))
- ************Part 2 (current):************ Set the bid price for stETH peg protection on the CozyMultiOraclePriceFeed to 2% and transfer 12 ETH to the TokenBuyer dedicated to buying protection

Since the passing of the part 1, the Nouns helper contracts that enable the DAO to swap tokens on L2 have been [audited](https://github.com/portaldiscovery/cozy-v2-token-buyer/blob/main/audits/veridise-report-july-3-2023.pdf) and deployed ([OptimismL1Proxy](https://optimistic.etherscan.io/address/0x4d6EC0e31c9177c696Fb49c2Ad04aB766e91F38f), [TokenBuyer](https://optimistic.etherscan.io/address/0xdD9e5Dab49d8394660d4Fe2383692448e3944d2b), [Payer](https://optimistic.etherscan.io/address/0xc2a9a0d746535cec8dd841651172396dea38464c), [CozyMultiOraclePriceFeed](https://optimistic.etherscan.io/address/0x31D2CfCFD44e0e1F5c36d065E665b56B6354EA5c)). This proposal will complete part 2 by transferring 12 ETH to the TokenBuyer. 

## FAQs

Addressing some questions raised during the voting period. If you have other questions, join the [discussion telegram group](https://t.me/+rfuoI8SkzxdhYjRh) and ask.

### Is there enough capacity on Cozy v2 for the DAO to get the proposed amount of protection?

Yes. At the time of writing there’s currently ~$1M of available stETH peg protection protection on Cozy v2. 

### How exactly does the “bid” work?

Upon execution of this proposal:

1. The tokenbuyer will be configured with a bid price of 2% (which translates to ~1.5% APR) for stETH peg protection tokens
2. 12 ETH is transferred from the DAO treasury to the tokenbuyer
3. Third party arbitrageurs sell protection tokens to the tokenbuyer in exchange for ETH  

Any ETH that isn’t purchased by arbitrageurs can be withdrawn by the DAO. 

For more details on how the token buyer works, visit this [github repo](https://github.com/nounsDAO/token-buyer). 

### Is $1M of protection enough if the DAO has exposure to $26M of stETH?

The spirit of this proposal is to conduct a small scale pilot, so the scale is sized accordingly. If the DAO sees value from the pilot, it could decide to scale up protection over time.

### How is ownership of the deployed contracts configured?

[OptimismL1Proxy](https://optimistic.etherscan.io/address/0x4d6EC0e31c9177c696Fb49c2Ad04aB766e91F38f) has the [NounsDAOExecutor](https://nouns.center/dev/smart-contract-architecture) as its L1OwnerAddress. The [TokenBuyer](https://optimistic.etherscan.io/address/0xdD9e5Dab49d8394660d4Fe2383692448e3944d2b), [Payer](https://optimistic.etherscan.io/address/0xc2a9a0d746535cec8dd841651172396dea38464c), and [CozyMultiOraclePriceFeed](https://optimistic.etherscan.io/address/0x31D2CfCFD44e0e1F5c36d065E665b56B6354EA5c) have the OptimismL1Proxy set as their owner and admin. 

Only the DAO can execute transactions through the OptimismL1Proxy, and only owner/admin transactions sent through the OptimismL1Proxy can be executed on the TokenBuyer, Payer, and CozyPriceFeed.

Outcome: EXECUTED