Aavegotchi

Author: AL (discord: @AL4105) Gotchi ID: 1264 Vote details: 20% Quorum; (7) days duration

Background:

AavegotchiDAO holds a range of treasury assets according to the mandate laid out in AGIP65 which outlined a 4-way split for unlocked $DAI for liquidity, general reserve, core team, and player rewards.

As of April 1st 2024, our stablecoin basket is as follows:

~5.8million USD worth 87.3% in $DAI/$aDAI; remaining in $USDC

Motivation:

An ecosystem change at MakerDAO is recently introducing some additional risk to $DAI with the consideration of including algorithmic stablecoin $USDE and $sUSDE as collateral to borrow $DAI against, with a cap being considered up to $1 billion USD.

This move is indicative of a growing trend where DeFi protocols seek to capture additional yield for users and controversially increase instability risks of the underlying assets in return. With our own DAO stablecoin holdings denominated largely in $DAI I think it is time to shed this risk by converting all our DAI into less risky stablecoins. It is encouraged voters learn more on the MakerDAO situation in the URLs listed at the bottom of this vote.

Voting Material:

I am proposing we convert all treasury assets held in $DAI and $aDAI into $USDC and $aUSDC, respectively. All assets will remain on their current networks unless bridged elsewhere on a different vote. With some research on 3-month yields it looks like there will be minimal impact on our interest accrued if we swap all $aDAI -> $aUSDC. This can be seen from a Dune Analytics chart below.

If passed, the acting AavegotchiDAO Treasurer and Foundation multi-sig directors should follow the below recommendations when swapping: • Withdraw all $DAI tokens deposited into Aave & Issue two tranches of swaps to USDC on https://swap.cow.fi/. Then re-deposit all USDC from aDAI equivalents back into the Aave Ethereum V3 Market for address 0x53…7B62. • For affected addresses on Polygon issue one swap from DAI -> USDC for both addresses 0x93…631c & 0x8c…90f6 on https://curve.fi/ . • For the remaining DAI in wallet 0xFF…8020 please follow the swap instructions above for Polygon on Curve.fi and swap to USDC. Total DAI Holdings and Wallets DAO Foundation Treasury 15,809 DAI - 0x53c3CA81EA03001a350166D2Cc0fcd9d4c1b7B62 ; Ethereum 3,557,579 aDAI - 0x53c3CA81EA03001a350166D2Cc0fcd9d4c1b7B62 ; Ethereum 193,490 DAI - 0x939b67F6F6BE63E09B0258621c5A24eecB92631c ; Polygon Remaining Bonding Curve Fees (Ethereum) 275,825 DAI - 0xFFE6280ae4E864D9aF836B562359FD828EcE8020 DAO Foundation Rewards Pool (Polygon) 9 DAI - 0x8c8E076Cd7D2A17Ba2a5e5AF7036c2b2B7F790f6 Total – 4,042,712 DAI

Background Sources: https://forum.makerdao.com/t/money-view-of-the-makerdao-morpho-ethena-drama/24026 https://forum.makerdao.com/t/risk-assessment-usde-morpho-lending-integration/23924/7