Our significant USDC holdings have served us well during the broad downturn the crypto space has experienced over the past few months. However, as a result our liquid treasury holdings have deviated significantly from our intended ratio of 40/60 ETH/USDC (current ratio 18/82 ETH/USDC).
As a result, we propose taking advantage of this drawdown to swap additional USDC to ETH to bring us closer in line to our intended asset allocation mix. Our recommendation would be to swap $200,000 (160 ETH at today’s prices) to bring us to almost 30/70 ETH/USDC. This improves our asset mix, but also leaves room to swap an additional amount of USDC if ETH continues to move lower over time.
For the sake of placing limits on the proposal but allowing for discretion and flexibility by the Treasury Squad, we propose officially authorizing the use of up to $250,000 of USDC to swap to ETH at an ETH/USDC price of no more than $1,400. This proposal authorizes the Treasury Squad to use their discretion executing this swap within the limits proposed above.
Two main reasons to do this right now:
- Crypto is in a severe drawdown, with ETH down over 60% in just two months
- Our asset allocation mix has become significantly overweight USDC
Swapping at least 150 ETH to USDC at an ETH price below $1,300 would be considered a success.
The main vault will send up to $250,000 USDC to the Treasury Squad wallet to swap to ETH.