Is high USD exposure though stablecoins a risk?
A few sources, including the ones below, point that USD has increased money supply and inflation the last few years (specially 2020-2021) at a high rate that has not been seen for about 30 years.
If USD stays on that path until it crashes and the global financial system migrates to cryptos, CBDCs or some other kind of global currency system, would the treasury be affected by this?
Option details:
- It is a risk. A solution is to buy other cryptos with current reserves and reduce exposure to USD stablecoins. Open other Proposal with trade strategy proposals.
- It is a risk. A solution is to accept more type of bonds. Open other Proposal to define the strategy.
- It is a risk. Both of the above are viable solutions.
- It is a risk. None of the above options are viable solutions. Follow up with other proposals to find a solution. 5 It is not a risk, because DAI and other algorithmic stablecoin reserves consist of cryptos and somehow that preserve the value of the currency even if it decreases for USD.
- It is not a risk, because of how OlympusDAO currently operates, some part of it’s protocol I missed removes the mentioned risk.
- It is not a risk, because of another reason.
If you think this proposal is good, feel free to tip my address with ETH, BNB, AVAX or FTM. This would help me free more time to research and continue to assist building a system so that we can prosper as much as possible with as much fairness and transparency as this new type of organizations allow.
Sources among others [1] https://fred.stlouisfed.org/series/M2SL [2] https://www.reuters.com/business/economists-eye-surging-money-supply-inflation-fears-mount-2021-06-17/ [3] https://tradingeconomics.com/united-states/inflation-cpi
| Voter | Cast Power | Vote & Rationale |
|---|---|---|
 0x9361...D90471 | 1,200 | Yes: Accept more bond types |
 0xc3B7...4DE764 | 694 | Yes: Both of the above |
 0xb6ac...e1393D | 138 | Yes: Both of the above |
 0xA886...7789Cc | 122 | No: Another reason |
 0xC41a...fbd9Ac | 89 | Yes: Accept more bond types |
VOTE POWER
Proposal Status
- Mon December 20 2021, 02:00 pmVoting Period Starts
- Tue March 01 2022, 05:00 amEnd Voting Period
Current Results
1-Yes: Accept more bond types
1,402.187
2-Yes: Both of the above
1,277.585
3-Yes. : Buy other cryptos.
147.73