# 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:** 1\ **Showing post:** 9
**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 21, 2023, 9:39am UTC](https://research.lido.fi/t/should-lidodao-sell-treasury-eth/3868/9 "2023-02-21T09:39:43Z")
> [@marcbcs](#): > > No, do not sell. > > Instead, are there any non-critical cost buckets that we could cut to extend runway? Another alternative is to collateralize the ETH or even wstETH if staked, which we could include as an option on the slate. For eg > [@steakhouse](#): > > For instance, at MakerDAO\*, Lido could obtain fixed and predictable stability fees: > > - e.g. 10k ETH, ~15m DAI at 300% CR would deliver ~5m DAI in liquidity for an annualized interest expense of 0.5% in the wstETH-B vault > [@steakhouse](#): > > \*_a protocol where SteakFi members also contribute to as the Strategic Finance Core Unit_ Other options are possible, for e.g. opening an unstaked ETH vault on Liquity, which has a lower liquidation ratio of 110% and no ongoing stability fees. You could essentially replicate the same vault as with Maker but with no ongoing interest fees, only the one-time minting fee of 0.5% iirc. The only disadvantage would be using unstaked ETH vs staked ETH for this but it’s certainly possible. We have not looked in great detail at variable rate CDP vaults just because of their unpredictability, though there are options such as Aave or Compound. A reasonable slate of options could be: - Do not sell or collateralize - Sell 20k - Sell 10k - Collateralize 10k at 300% - Collateralize 20k at 300% If either of the collateralize options wins, we wait for the [stake ETH Snapshot](https://research.lido.fi/t/should-lidodao-stake-treasury-eth/3869/6) to resolve: - If stake wins, we use the wstETH Maker vault - If keep unstaked wins, we use the Liquity LUSD vault and whatever other options are proposed by the community as alternatives. If more options arise, we can run a final Snapshot to pick a CDP provider. There are many good reasons to open a CDP position. It is probably our preferred option (stake 100%, CDP wstETH as needed), assuming no operational constraints. However, the operational reality is that maintaining the health of this vault may prove to be complicated for a decentralized community, particularly in periods of volatility. --- _[View the full topic](https://research.lido.fi/t/should-lidodao-sell-treasury-eth/3868)._