ENS DAO Treasury & USDC/Stablecoin Risk (Due to SVB Bank Run & Circle Involvement)

🗳️ Meta-Governance
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Hello ENS DAO,

When the ENS DAO voted on Treasury Governance,
many were weary, because the recent FTX/FTT situation showed us that “stablecoins are a risk”, from both:

  1. regulatory/legal orders, and also,
  2. centralized risks and/or fraud.

Now, Circle is short $3.3 billion
(of the ~$40 billion of USDC reserves remain at SVB)
…this is 8% of the supply.
https://twitter.com/circle/status/1634391505988206592

Binance is suspending auto-conversion of USDC:
https://twitter.com/WatcherGuru/status/1634368219082285057

Coinbase is not allowing USDC to USD:
https://twitter.com/JoshBobrowsky/status/1634392163130769411

The $USDC peg is off by ~3% right now:

QUESTION:
What does this mean for ENS Treasury,
and can we (should we) convert some back to:

  1. ETH?
  2. ENS?
  3. DAI?

Is this an accurate link with balance data:

I don’t know a lot about this stuff,
but I trust bearer assets, like ETH & ENS (not USDC,
…as they are able to freeze funds, and risk assets, as they have).

This seems urgent, like action should already be in the middle of discussion.

  1. What do we think about this?
  2. Who controls the decision making?
  3. What decisions would need to go to a DAO vote?
  4. What is the analysis, and what are the options that we should think about early?

Where are the lines of communication for an urgent situation like this, which is happening on a Friday Night, (the known day/night for black swan events).

Thank you,
GaryPalmerJr.eth

7 Likes
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(It seems we currently hold 17,144,568 USDC.)

I definitely don’t want to panic, still,
I do want us to be actionable & nimble;
And time is of the essence; weekend-now?

How do we conclude if hedge is required?
What is the worse case scenario for DAO, or there is no risk?

Is Silicon Valley Bank the first of many?
…how will this effect Circle & USDC?
https://twitter.com/jmhorp/status/1634320834599993345

Yesterday, SVB CEO told investors to "stay calm & don’t panic."
…Today, US regulators closed and seized the bank.
https://twitter.com/WatcherGuru/status/1634312109306654730

…Now, USDC Coin is down -7%:

Is there no risk, & this is just irrational market,
+a great buying opportunity for buying USDC?

…or an irrational market can lead to USDC risk?

2 Likes
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An update with a plan from the managing entity would be preferential.

1 Like
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bandicam 2023-03-10 22-50-39-942
bandicam 2023-03-10 22-50-39-942682Ă—765 101 KB

1 Minute chart

bandicam 2023-03-10 22-55-08-550
bandicam 2023-03-10 22-55-08-5502321Ă—765 145 KB

forever chart

5

There is no managing entity. The USDC from the recent swap is sitting in wallet.ensdao.eth, which is controlled by the ENS DAO. If there is a plan to do something with that USDC, it will take ~9 days to execute — 7 days for the vote once on-chain and 2 days for the time-lock.

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That’s far absurd. So Nobody cares? Well I don’t have a signer and nobody is online chatting about a potential solution.

So we are just gonna watch out funding fall apart? USDC has dropped to 0.82c

USDC is going to collapse. period. We must have conversation now or watch it all burn.

1 Like
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It’s not looking good at all

Still no idea why ETH wasn’t good enough to hold

8

Who decided to put a 2-day timelock on the assets?

That was not outlined in the proposal!

9

It’s built into the contract.

10

Did we decide on that?

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The ENS Governor contract was launched with a 2 day timelock. You can find more info on the timelock function generally in the Open Zepplin Governor docs. If the ENS Governor contract is upgraded in the future, it is likely that the period of the timelock will be discussed further.

1 Like
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Could you please link me to the proposal that outlines that specification, I can not find it.

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There was no proposal. The Governor contract was created to launch the DAO. It wasn’t voted on because the DAO didn’t exist until the contract was deployed.

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What is the address to that contract?

0x323A76393544d5ecca80cd6ef2A560C6a395b7E3 ?

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governor.ensdao.eth

17

that address is not listed in the proposal.

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You can find more information about the role of the governor contract here:

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It’s not outlined in the proposal

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What proposal?

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Serious question…

Has anybody ever considered or put thought to investing some of the funds into IRL Land, real estate ?

Obviously not something that can happen overnight, but in my opinion - if done correctly could be a much much safer long term investment along with providing actual utility.

Good luck on figuring out what to do with the treasury though guys!

Perhaps it’s during testing and chaotic times like these that there needs to be some “Code Red” automated action plan that gets initiated…

Protocols that may initiate important life and death type decisions being able to take place by an appointment/elected head of the DAO and or community. Perhaps not even a member of the DAO…

Time will tell I guess.

Testing times are upon us all once again!

🫶🏽