PGM-30: Treasury Management #4

Ok, no more questions from my side !

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Thanks again for your feedback and questions !

Final proposal recap:

  • Sell future Quest fees & non strategic yield to LUSD until automation
  • Keep 1 month of interests in USDC (4K atm) + 500 USDC LP with D2D staked on Aura
  • Convert all remaining USDC to LUSD unallocated (trying limit orders to avoid premium)
  • Launch the transactions on the different multisigs mentioned in part one
  • Mobilize at least 50k by end of May to reduce the loan pressure

I’ll push the snapshot in a few hours if all good.

I feel like the converdstion has switched topic.
Maybe using LUSD (or other) as a reserve should be for another proposal?

So you’re suggesting to keep the USDC exposure for now and report the diversification to decentralized stablecoins, which could let the time for other solutions to be ready ?

Yes, I also think those 2 subjects should be separated and discussed on their own.
I think the strategy for the Treasury is currently viable, and should be applied in the near future.
Meanwhile, the alternatives discussed here for the stablecoin diversification each bring some downsides that might not be worth at the current time, so further reflexion should be necessary (and as you just said, would also allow to see other solutions that might fit our needs in a better way).

The only viable option discussed atm is LUSD, and as mentioned the premium could be avoided with limit orders. RAI might be another solution but not exactly a stablecoin.

We would have to wait for GHO, crvUSD or other solutions to launch (and there are no ETA for it) if several options are required to diversify and secure the treasury, so not sure if worth it to keep the USDC exposure risk

Are we not exaggerating a bit this USDC exposure risk?
If we had a much larger treasury and no debt, I would be in favor of diversifying in the short term. But for the moment, the position is still small and given that the loan is also USDC denominated, you could even say that we are short USDC, no?
We can progressively move to a more diversified stablecoin position as we reimburse the loan and convert the quest fees in other stables (LUSD and others coins TBD).

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Tbh I’m fine with both, I initially proposed to hold USDC for the debt too but the recent events showed that it’s best to be prepared and careful so imo its worth converting to LUSD.

However, seems like the majority would be for holding USDC for now so let’s remove the LUSD conversion from this proposal and open a new topic so we can move forward


Gm, the vote will be live in 1h: Snapshot

Quorum PGM-30: 541,125 votes