Opt-in streams in sUSDS: More resources with no additional cost

Service Provider Program Program Discussion and Admin
6

Proposal [EP 3.3] established the concept that the DAO maintain a 18-24 month runway of stables to ensure a guaranteed runway.

We then codified that in the IPS:

Constraints

Constraints of the Endowment deployment are as follows:

  • Liquidity needs: at least 3 years of DAO’s operating expenses runway should be held in stablecoins and stablecoin-neutral positions, based on the last calendar year’s expenses. Based on 2023 spending rate, this represents $26.7M in stablecoins.
    • The idea was initially floated on Routine DAO treasury management proposal, but was never formalised. Instead, EP 3.3 facilitated procurement of the runway, via a swap of 10,000 ETH into $16.2M USDC on CowSwap. At the beginning of 2024, $11.5M of USDC was remaining in the DAO wallet (not under Endowment), representing ~0.95 years of runway.

It’s in the IPS, and Karpatkey has always included the stables in the Timelock in that calculation. We’ve generally been okay with a portion of the stables being represented by stable equivalents in the Endowment.

1 Like