Sushiswap treasury

Summary

I propose we diversify the sushiswap treasury into sushi, stablecoins and maybe BTC/ETH.

Abstract

I propose we rebalance the sushiswap treasury every month. so it get a more balanced distribution of sushi and stablecoins, and if the community wants maybe also BTC/ETH.
Furthermore i propose we include a #treasury in the discord channel, where the team update the treasury every month, with a rough overview of the inflow, and the expenses, so we as community have a better understanding of the cashflows and the war chest.

Motivation
It will help sushiswap survive and keep innovating and hire new people even if we should enter a bearmarket. It will also make it easier for the team , since they don’t have to think about when/ if they should sell sushi to pay salaries and other expenses. A #treasury channel will also help with transparency in regards to the community.

Specification
I propose 4 initial solutions to be start out the discussion.

  1. Rebalance the treasury every month so it contains at least 30% of its $ value in stablecoins. - If it contain more than 30% af the value in stablecoins there is no rebalance that month.

  2. The same as above, but include 10% ETH and 10% BTC, so the rebalanced treasury would be 50% sushi, 30 % stablecoins, 10% ETH and 10% BTC.

  3. Keep the treasury as is.

  4. I like to change the treasury from 100% Sushi, but have other ratios in mind.

For
Diversify the treasury to ensure stability and longevity for sushiswap, and make the treasury and expenses more transparent to the community.

Against
The treasury lose value if sushi goes to the moon and beyond.

Poll

Treasury management
    1. Monthly rebalance of the treasury to contain at least 30% stablecoin.
  • 2.Monthly reblance of the treasury to contain min 30% stablecoin, 10% ETH and 10% BTC
    1. Keep treasury as is
    1. I like to change the treasury from 100% Sushi, but have other ratios in mind.

0 voters

2 Likes

I’m happy to see that someone else had my same concern :slight_smile:
It is common knowledge that after each bull market comes a big dump (I guess we’re so early that crypto is still a huge ponzi scheme) and while we don’t know if this time is different (DeFi is real and building real value) we definitely should hedge our portfolio to improve the stability of the protocol.
This is why I sketched a few options in this document.

I’m just leaving it here for further brainstorming.
I left BTC out because I think we shouldn’t mess with wrapped tokens…Vitalik himself voiced his concerns about BTC bridges.
If we decide to keep a % of our treasury in BTC, I think we should go for sBTC over wBTC or renBTC; still, one could say sBTC is a synth and not backed by real BTC.

In my document I’m assuming that we keep 75% of our treasury in SUSHI and the remaining 25% is used in one of the options displayed, but the % are pretty arbitrary at this point.

2 Likes

I think 30% is a fare share to be held in stablecoins. Ideally in a yearn vault with a cover insurance.
But the sale should be done OTC at undisclosed time to prevent front-running.
I’m sure Sam would facilitate the deal with as little market impact as possible.

2 Likes

I think it’s always a good idea to diversify! I saw that you are looking to do OTC deals. What if we had a decentralized OTC product we can use and not bother with centralized platforms?

I am here representing Secret Network (SN). We are a privacy preserving smart contracting platform and can help with decentralized our OTC product.

The idea is you bridge SUSHI and mint secretSUSHI on SN. Then you can create an auction where you specify how much Sushi you are selling, what you want to receive in return (DAI, USDT, USDC, ETH, WBTC are all supported) and add a minimum asking price. Bids come in encrypted so that buyers cannot collude. When there’s a match, the contract automatically swaps tokens (with privacy for the buyers) and there’s no counterparty risk.

If anyone is interested to try, we can do a sample SCRT - SUSHI auction. Here’s an auction, where 300 SCRT is being tendered for SecretSUSHI at 10% discount to market rates. The auction is open for 12 hours :slight_smile:

If you’d like to participate, you need to:

  1. download keplr wallet and create a SCRT address
  2. use bridge.scrt.network to move SUSHI → secretSUSHI
  3. make a bid on the auction :slight_smile:
2 Likes

Not only can you use the OTC auctions on Secret Network though, but also keep in mind that SUSHI is supported and front-running is not possible using SecretSwap. Once there is sufficient liquidity you’d be able to make this happen there.