For discussion around the Proposal to use DXdev MS to Exchange ETH to DAI for DXdao Treasury
Alchemy Reference:
Details:
This proposal is a request for $122,500 worth of ETH to be sent to the DXdev SAFE Multi-sig with the intent to exchange it to DAI and immediately return it to DXdao treasury.
At current price of ETH 1225 this would be 100 ETH
This amount will enable DXdao to cover at least a month of payments.
This will be the first experiment of this kind as just one method of getting USD-based stablecoins into the treasury.
The DXdev MS (3 of 5) is controlled by a set of active DXdao contributors who have significant REP holdings (that can be slashed by DXdao). This provides an additional safety mechanism if anything were to happen to the funds.
MS wallet: 0x5F239a6671BC6d2bAEf6D7Cd892296e678810882
There will be a plan to do some additional exchange requests to go inline with DXdao’s overall Treasury management strategy. Additional exchange proposals will be spaced out at least every couple days, so REP holders have the ability to downvote future proposals if necessary.
DXdao having USD-based stablecoins is important for DXdao monthly expenses and to remove much of the volatility around these actions. This experiment is just a small part of the overall strategy for DXdao to hold USD-based assets and to be used in addition to DXdao being able to do this directly using the coming Multicall functionality.
Proposal Request Summary:
Send 100 ETH to DXdev MS: 0x5F239a6671BC6d2bAEf6D7Cd892296e678810882
To be exchanged to DAI and returned to DXdao treasury.
Additional info and questions:
1) so the multi-sig would immediately exchange for Dai when it’s received?
yes, it’s not automatic, but the multisig holders will be aware of when the proposal will pass, and can be ready to exchange and return within a couple hours.
But yes, it will be done at then current market price.
Potentially in 1, 2 or 3 txns depending on if 1inch slippage makes a difference.
This is one drawback of this solution versus Member Balancer. This will take mkt price in 7-8 days.
Member Balancer can take mkt price RIGHT NOW.
but ETH price would be lower or higher in 7-8 days - who knows.
but if proposal passes, it will be done at then current price, with basically no waiting.
Another option is to use ‘Member Balancer’ solution proposed in early December which is one-way Trustless (meaning DXdao doesn’t have to trust anyone):
With the proper incentives, I think this could accomplish the same goal…in a maybe better way.
As mentioned in the #treasury channel on keybase, I would be happy with this plan if multisig members can connect their identity to their multisig and REP addresses. That could be done by creating a keybase signed message with both their address used for multisig and their address holding REP. This way if anything malicious is attempted, members can easily be held accountable with a REP slash.
The most trustless method for DXdao to rebalance its treasury is to use the Gnosis Protocol Relayer that DXdao will soon be connected to via the Multicall Scheme. This should eventually be the primary, and perhaps only, way in which DXdao rebalances its treasury. However, the multi-call proposal will take a couple weeks to pass and then each relayer proposal will take roughly an additional week and it would make sense to ramp up the size of the relayer trades somewhat gradually. Therefore, it could take more than a couple months to move a significant portion of the treasury into stablecoins. With the price of ETH nearing all time highs, I think it makes sense to accelerate treasury diversification by employing multiple methods at the same time. I would be in favor of using the multi-sig as outlined above (with the verification of multi-sig owners suggested by @KadenZipfel), as well as the member balancer approach, as well as the Gnosis Protocol Relayer.