Note: This snapshot votes only on Part D of the full "BIP-83: A Holistic Update to Botto’s Economy". There are 6 total votes for BIP-83, see the other votes on the main snapshot page.

Summary

Currently there are approximately 610 ETH (~$2.8M) that’s sitting in the Treasury and not put to work and earning yield.

The Treasury Working Group proposes the following Staking Strategy to earn yield on the Treasury’s idle assets.

Allocation example (illustrative, not definitive of actual allocations):

• Convert ETH to meet at least 6 months of expenses ($85k x 6 = $510k)
• ~80% of remaining ETH to Lido ($2.2M at 2.7%)
• ~20% converted to USDC ($510k) - Deposit $255k to Aave supplying USDC at 4.25% - Deposit $255k to sUSDe at ~9%
• This strategy will generate approximately 3.8% or $104,025 annually

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Specifications:

• Use Lido and stake ETH to get liquid stETH
  • Rationale is that Lido is battle-tested, has $38B TVL and earns a steady 2.7%
• Use Aave and Ethena for liquid staking of USDC
  • Aave USDC Supply: $6.1B utilized out of $7.5B cap
  • Ethena: $14B TVL

ETH staking will continue indefinitely and the Treasury Working Group will review the overall Treasury portfolio at the end of each month to execute the necessary transactions as necessary. This includes, rebalancing to maintain overall USDC balance, withdrawal of USDC from Aave or Ethena to fulfill payment obligations, converting ETH to USDC, or staking the newly received ETH to Lido.

In addition, the Treasury Working Group shall have the discretion to stake/dispose of assets that are currently in the Treasury wallets that are not core to the DAO and are immaterial in value (<$30k): ie. WETH, OP, RARE, SYND, ENS, etc.

Note: Snapshot is only a summary, the full BIP in the forum takes precedent.

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📚 Read the full proposal: https://forum.botto.com/d/120-bip-83-a-holistic-update-to-bottos-economy Discussion of holistic proposal: https://discord.com/channels/829636834371960842/1418629635100643358 Discussion of Part D: https://discord.com/channels/829636834371960842/1418598133050380378