We could be doing a lot more with the treasury I think. A lot of yield farming going on, can easily x2 the treasury depositing to Curve, while I know treasury currently dont hold any stablecoins, can even farm YAM through wETH, and so on.
^ that means this DAO can literally farm other DAOs
thoughts on a proposal where we liquidate some DMG ? since its a majority holding and the DAO is better of diversified to other stuff and also inefficient use of treasury, can be swapped for stables to farm curve for example, and then potentially using this yield profit as a cash flow for token holders, or the yield profits can just be used to buy DXD on the open market, anything the community thinks is beneficial.
I agree that we should move part of the treasury into stablecoins and do some lending. This being said, I think we should be really careful with where we park our money. In my opinion, we should go with cDai to minimize risks as much as possible while still earning a decent return on our investment. Alternatively, if we can manage to fully insure a more risky position, it may be worth considering, though insurance options are not bulletproof.
I also believe we should consider price points at which we can start selling ETH. I’m sure most of us are bullish ETH, and I think it’s always a good idea to have some ETH, but as the price rises we should be taking profits. Perhaps if we can agree on some price points at which we sell certain amounts of ETH, we can create limit orders on Mesa if possible.
I also think it’s important to consider worker payments when considering treasury management. Since we have to wait at least a week for our proposals to go through, with a set amount of a volatile currency as payment, it would be much better for us to be able to request payment in stablecoins.
If we want to minimize risk, that means we should limit the amount of smart contracts we’re exposed to, and use contracts that have been tested the most. Curve uses composability to expose you to many protocols simultaneously, which leads to a higher APR, but also more possible attack vectors.
Since we’re dealing with millions of dollars, I think we should be incredibly careful, and Compound is arguably the safest lending protocol. In terms of risk management, I would even suggest that we go for cUSDC over cDAI, but considering our need for decentralization, cDAI seems like the obvious fit.
Fair take, but also Curve has 1B deposits and many hedge funds and desks did some research / audits before they went on and deposited, In my opinion I really think it is probably safe, but in regarding to risk, I see no harm in diversifying into multiple yield generating protocols too