Hi Lido Community
I work with the Idle Finance DAO, and we have recently started similar discussions on the topic of treasury diversification. Diversifying the Treasury balance definitely seems to be a direction many DAOs are going towards, which makes sense as it helps to provide a clearer runway to fund the protocol’s growth with higher certainty as it removes the market risk of being completely exposed to higher volatile assets.
For those who are not aware of the Idle protocol, it is a yield aggregator seeking the best yield across multiple yield sources and assets. Currently, we are integrated with Aave (v1/v2), Compound, and DyDx; and we support large stables like USDC, DAI and USDT.
The Idle protocol is based on 3 pillars:
competitive optimisation technology (Dynamic Allocation Mechanism),
focus on security (5 audits, $500k bug bounty program),
and long track record (active since mid-2019, backed by Consensys).
The Best-Yield strategies maximises the returns while preserving high-security criteria.
FYR: The average DAI APY has been 10.81% over the past 5 months.
If Lido progressed with this diversification step into a stablecoin like DAI, we would be happy to provide a highly secured yield for Lido’s DAI assets .
Good luck with this!