Diversify the Treasury (USDC, BTC, ETH)

I propose allocating a percentage of the BOND DAO to BTC, ETH, and a stable coin like, USDC. As well as allocating some friends to partnerships and investments.

Diversifying the treasury outside of BOND will reduce risk associated with high asset concentration, and also allow it to capture the greater upside of the market at large as it rises. Additionally, it hedges risk of token devaluation in the case of hacks, or Defi market specific shocks.

Second, outside of BTC, ETH, and stable coins, i would ask that we consider earmarking a small percentage of funds for buying coins of key partners, like AAVE and COMP. This type of partner investment shows we have skin in the game in the long term success of the partnership.

Lastly, perhaps a 1% allocation to those upcoming projects that we believe would be complimentary to BB in the future.

API3’s DAO could be looked at as an example for reference.

I’m interested in people’s thoughts, and what they believe a reasonable allocation would be.

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Yes.

  1. Risk hedge
  2. It looks like we’re going to be deploying treasury assets for yield. It is easy to earn yield with BTC/ETH/USDC.
  3. I think all dapps should have reserves of the network coin they’re on (ETH, SOL, etc.).
  4. I love the 1% allocation idea as a way of showing solidarity with other protocols.

The argument I could see against it is that we wouldn’t want to dump large amounts of BOND on the market to achieve this. Either way I agree with the concept, and would like to see discussion move toward the logistics of implementation.
TY for the post.

Define & Elect Treasury Management Team seems that this topic can be discussed together.
If any mortgage platform can list us, it will be possible to obtain the diversity of assets without selling BOND in the market

2 Likes

I’d start by using our treasury to farm on other protocols. I could imagine a subsection of our DAO specialising in treasury allocations on for example sushi/liquity/compound/etc.

Furthermore, pool 2 could for example move to sushi. SLPs put into pool 2 would then be placed in sushi’s yielding contract earning the DAO some extra voting power on a potential BB client platform. This would in effect change nothing for liq. providers and would be a net positive for the DAO, not even fully considering what governance power would mean for accelerating client-side integration.

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