LidoDAO Treasury Choices
We’ve launched three other treasury-related proposals aiming to obtain a clear signal from LDO token holders regarding basic principles for how the DAO should manage its treasury.
Since October, the protocol has been generating north of ~1000 stETH each month
At current prices this is sufficient to cover monthly operating expenses in most scenarios
As we prepare for withdrawals, we can expect to see much less price pressure on the stETH/ETH exchange rate than previously expected with large market sales
These sales could be executed through Cowswap over a longer period of time
We had similarly contemplated a CDP strategy to lever up the effective capital structure of the protocol and, while an interesting thought experiment, likely remains in the realm of possibility not reality given the operational constraints of managing complex CDP positions through Aragon votes
Proposed execution would likely be on a staggered basis through Cowswap into whatever basket of stablecoins the DAO picks in this vote.
Look forward to hearing views, alternative options and other thoughts and comments.
Final options on Snapshot execution may vary slightly.
Sell each month whatever amount is required to cover operating expenses
It’s a fair point. The idea is to seek a signal from token holders regarding the overall policy for sourcing capital for operating expenses. One approach could be to let all the stETH flow to the surplus as long as there is a ‘runway’ and revisit this vote in a year or two.
We can stagger this Snapshot vote after the ETH ones.
Yes, this makes a lot of sense. We might formulate the vote such that it allows the possibility to revisit in 12 or 18mos. Definitely sequence the vote until after token holders decide on the ETH. Appreciate the contribution and offer to help
imo the first two votes can be concurrent, as the aim is to find an overall policy for any treasury ETH. Logically the most ‘destructive’ option should prevail so If sell 100% wins and stake 100% wins, we will end up with 0% staked but stake 100% of any future ETH that arrives to the surplus for whatever reason.
But for the avoidance of doubt we can stagger it too, it just adds a week of delay it’s not that much. The stablecoin proposal should be concurrent with the sale one to understand what to ultimately sell into, if any sell option is selected.