# Should LidoDAO sell treasury ETH? **URL:** \ **Category:** Proposals\ **Created:** [February 13, 2023, 9:42pm UTC](https://research.lido.fi/t/should-lidodao-sell-treasury-eth/3868 "2023-02-13T21:42:18Z")\ **Posts on this page:** 5\ **Page:** 2
**Author:** ![santinomics](https://dub1.discourse-cdn.com/flex013/user_avatar/research.lido.fi/santinomics/32/2466_2.png) [@santinomics](https://research.lido.fi/u/santinomics)\ **Post date:** [February 23, 2023, 1:19pm UTC](https://research.lido.fi/t/should-lidodao-sell-treasury-eth/3868/21 "2023-02-23T13:19:27Z")
Thanks for your comments. > [@Izzy](#): > > The DAO Treasury is not a Safe, it’s an Aragon vault. Due to that, I don’t see how this could work without transferring it to a Safe to begin with. You’re right. Then a transfer to a SAFE is a required step. > [@Izzy](#): > > There may not be an explicit need (i.e. if authority is given to karpatkey to do all the actions) but I’m not sure that’s the most reasonable/prudent approach from the get-go. karpatkey would only be able to operate within the boundaries established by the DAO. I believe that DAOs in general should focus on their core business and leave treasury management to dedicated parties rather than trying to tackle everything themselves. ---
**Author:** ![kpk](https://dub1.discourse-cdn.com/flex013/user_avatar/research.lido.fi/kpk/32/6874_2.png) [@kpk](https://research.lido.fi/u/kpk)\ **Post date:** [February 27, 2023, 4:31pm UTC](https://research.lido.fi/t/should-lidodao-sell-treasury-eth/3868/22 "2023-02-27T16:31:36Z")
We’d like to take this opportunity to chime in and share our view on this proposal. According to [Aragon’s records](https://mainnet.lido.fi/#/lido-dao/0xb9e5cbb9ca5b0d659238807e84d0176930753d86/), the DAO’s treasury exposure to ETH at the time of writing is approximately 72% of the entire portfolio. Lido should diversify the portfolio and secure enough stablecoins to guarantee a minimum runway of 2 years’ worth of expenses—without sacrificing the ETH price upside once the bull market returns. Current run-rate’s range mean for the DAO according to this proposal’s context info is around $1.5M/month, which accounts for roughly $33.6M over the new 2 years. One potential path is to sell 10,000 ETH (~$16M) and use the existing DAI holdings (~$17.35M) to fund the operation over this period. The proposed transaction could be executed through CoW Protocol and their [Milkman project](https://github.com/charlesndalton/milkman), which allows to defer the choice of the limit price from order initiation (pre DAO vote) to order execution time (solver settling the trade). ENS has already executed an [identical proposal](https://discuss.ens.domains/t/ep3-3-executable-sell-eth-into-usdc/15906/12) successfully. Additionally, staking the remaining ~10,304 ETH would increase capital efficiency without adding operational complexity to the DAO, while promoting the protocol’s own value proposition. While there are more complex alternatives such as collateralizing stETH to borrow DAI on MakerDAO, the DAO may not be able to actively monitor these positions at this stage. Good treasury management practices are critical for any DAO looking to survive in the long term, and it’s encouraging to see Lido moving in this direction. ---
**Author:** ![AbelTesfaye2023](https://avatars.discourse-cdn.com/v4/letter/a/b77776/32.png) [@AbelTesfaye2023](https://research.lido.fi/u/AbelTesfaye2023)\ **Post date:** [February 27, 2023, 10:59pm UTC](https://research.lido.fi/t/should-lidodao-sell-treasury-eth/3868/23 "2023-02-27T22:59:25Z")
how are we back to this place? didnt we just sell a bunch of ldo tokens to do the run way? why are we here again ---
**Author:** ![steakhouse](https://dub1.discourse-cdn.com/flex013/user_avatar/research.lido.fi/steakhouse/32/1878_2.png) [@steakhouse](https://research.lido.fi/u/steakhouse)\ **Post date:** [February 28, 2023, 1:56am UTC](https://research.lido.fi/t/should-lidodao-sell-treasury-eth/3868/24 "2023-02-28T01:56:45Z")
In our view it’s less about raising specific runway months and more about asking token holders what the allocation principles should be for the treasury. One of @Hasu 's comments in the summary threads has been quite pointed and relevant: > [@\[SUMMARY\] Treasury Proposals](https://research.lido.fi/t/summary-treasury-proposals/3923/3): > > Instead of voting on so many individual decisions, could we instead let the DAO vote on how level policies a la “how many years of runway should Lido have at all times?” and then push the complexity of implementing these policies to a core unit or committee? It would be great to have a committee of DAO community members to form this initial group and set these principles in public. However, even with this committee, decisions of the size we are asking for would have to require token holder approval (let alone they would have to approve it on Aragon). ---
**Author:** ![nicole\_maffeo](https://dub1.discourse-cdn.com/flex013/user_avatar/research.lido.fi/nicole_maffeo/32/2416_2.png) [@nicole\_maffeo](https://research.lido.fi/u/nicole_maffeo)\ **Post date:** [February 28, 2023, 7:03pm UTC](https://research.lido.fi/t/should-lidodao-sell-treasury-eth/3868/25 "2023-02-28T19:03:01Z")
+1 On building out treasury allocation principles as well as Hasu’s point on run rate best practices. Happy to help & join committee. I can spin up a gov proposal for committee (lol)? Probably something that can set standard across DAOs more generally tbh. [Previous page](https://research.lido.fi/t/should-lidodao-sell-treasury-eth/3868.md?page=1)