SDIP Authors: glory
Project lead: glory
Creative approval: N/A
Time Required: < 1 Hour
We have a significant amount of assets sitting idle in the Genesis Wallet in a mix of USDC and ETH. We propose that $1.5mm of our USDC be deposited into Aave to earn a small amount of yield.
Our treasury currently contains a combination of ETH and USDC totaling over $6.25mm. Operating expenses and potential investments will likely consume less than a quarter of that total amount over the course of the next twelve months. Current estimate of run-rate expenses:
$36k for fixed compensation monthly
25 ETH for acquisitions monthly
$14k for other uses/buffer monthly
Total $1.5mm per year
As such, we have a large pool of capital that will be lying idle for the foreseeable future. Placing $1.5mm of our USDC into Aave will allow us to earn a small return (estimated $30-40k in yield) on our treasury assets without jeopardizing operations (we’ll still have ~$4.75mm of assets in the treasury).
This is a conservative first step, and we can continue to refine this investment strategy over time to maximize risk-adjusted returns via future proposals.
Deploy $1.5mm to Aave
Target a return of $30k USDC annually
Upon passing Snapshot, the Genesis Wallet multi-signers will transfer $1.5mm USDC to the Treasury Squad Wallet. Treasury Squad signers will utilize the Aave app on Gnosis to deploy the $1.5mm into Aave’s USDC deposit. Treasury Squad will regularly monitor performance of the investment.
This proposal considered other alternatives to using Treasury Squad wallet, but ultimately Treasury Squad wallet is best option.
No special conditions; specifications above