RGP-32b: Choosing Asset for RGP32

1

Introduction

Given that RGP-32 passed, we have to now decide how the DAO will source 1M USDC from the various assets it holds.

As of the current time of writing, the DAO has:

  • 886 ETH/WETH (~$1.6M)
  • 324 stETH/wstETH (~$651K)
  • 146 rETH-THETA (~$141K)
  • 559K USDC (~$560K)
  • 156K LDO (~$363K)
  • 4.3 WBTC (~$122K)
  • AAVE/rETH/BAL/APE/SPELL (<$75K)

Proposal

We propose three options for sourcing 1M USDC:

  1. Sell all LDO / BTC, and split the remaining amount (~500K) equally between ETH sale and USDC balance. This sells all LDO / BTC holdings, lowers DAO ETH exposure by ~10%, and retains 80% of USDC holdings at time of writing (if we include the 687K USDC in the POL position).
  2. Sell all LDO / BTC, and sell ETH for the remaining amount (~500K). This sells all LDO / BTC holdings, lowers DAO ETH exposure by ~20%, and retains 100% of USDC holdings.
  3. Sell ETH/stETH/wstETH for 1M USDC. This lowers ETH exposure by ~42% and retains 100% of LDO, WBTC, and USDC holdings at time of writing. This is the simplest and most straightforward.

There are other very reasonable options for the asset breakdowns which we welcome discussion on in the RGP discord channel. If there is enough support, those options will be added to the final snapshot vote.

Implementation

  1. Assets will be market sold to USDC
  2. 1M USDC will be bridged from the Aevo L1 Bridge to the Aevo L2 Insurance Pool (0x6cDc77Af264be2349F98F5d2cb58A453757CAAE7).

Voting

Proposal will be live on forum for the next 4 days and the most popular choices will go for a vote on snapshot for 3 days.

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2

+1 Good options. All are common sense and smart routes to be honest. I am personally partial to #2 as it preserves USDC reserves while derisking treasury’s LDO + ETH exposure. Has this pushed to snapshot? Again, any and all seem like great options. Nice write up. Thanks for the transparency.

Cheers,
Nic

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