Over the past weeks I’ve been working on some analysis of the DXdao treasury and finances. With the DXdao treasury growing and moving onto L2 chains, this presentation aims to give an intuitive and transparent overview of the treasury. You can find the Q1 presentation here: https://gateway.pinata.cloud/ipfs/QmfZdBNMtEPteG7JuTqxbxg4Zo4o4veWcenwoJs6PrsPZC
Awesome work!
I’m still trying hard to reserve some time with the team over at Nansen to jump on a call and discuss the possibility of putting together a neat dashboard.
I have a general question that does not necessarily pertain this thread. But let me do it anyway.
Question: What is the main reason for DxDAO to keep so much in ETH?
Don’t get me wrong. I am probably more bullish on ETH than you
But the point is: the currently $44.9M in ETH reserves have what kind of purpose? Speculation on the vision that ETH will grow in price? Or something else?
Provocative Question: Wouldn’t it make sense to convert those $44.9M into stablecoins (say the 95% of it)? That would provide budget security for several years of salaries and team-expansion, marketing initiatives, audits, etc.
Not to mention that stablecoins currently can produce >5% APY yield, which would mean (on 44.9M) about 2.5M usd/year.
Historically speaking, we have been quite lucky to hold ETH. However, the points you raise are all valid and great feedback.
There is an on-going discussion about diversification and as you can see in the presentation, DXdao already started moving a portion of funds into stable coins. There are a number of questions still open, i.e. How much should be moved into stablecoins? Which stablecoins should be aquired? Should stablecoins be yielding an APY?
Personally speaking, I don’t think moving all funds into stablecoins is the way forward. I believe the dao, being part of the ETH community, should retain a significant amount of ETH in the treasury. But I agree that a number of years of runway should be secured in stablecoins and as aforementioned this is currently being evaluated / discussed in the community and one of the goals of the Treasury in Q2.
