Abstract
A few weeks ago we proposed swapping up to 25% of our USDC to ETH. As a result of that proposal, the DAO now holds 625 ETH.
We propose an additional swap of USDC for 375 ETH to bring our holdings to a round 1,000 ETH. This would equate to our DAO’s capital being in a ratio of approximately 40/60 ETH/USDC. We think this is an appropriate balance of each currency to provide stability of capital to maintain ongoing operations but also allow for sufficient exposure to benefit in the event of a rising ETH environment.
Motivation
The timing is right for this swap. Our treasury diversification snapshot vote passed when ETH was above $4,500. ETH is now trading at ~$3,100.
In terms of strategic rationale, there are two main drivers:
Maintaining some exposure to ETH allows us to further participate in the value creation of Web3 as a whole
We will inevitably incur expenses denominated in ETH, and this will allow us to better match our assets to those expenses
This leaves 60% of the remaining value of the treasury in USDC, which should still provide sufficient stability to the organization.
Success Conditions
Successfully swapping 375 ETH worth of USDC to ETH.
Specification
Genesis Multi Sig will utilize the Gnosis Uniswap app to execute the swap, and failing that will have the authority to handle the swap as they see fit.
Launch Details
Genesis Multi Sig holders will execute this swap at their discretion.
Costs
N/A
Rewards
N/A
