| TMC-3: stSOL repatriation proposal | |
|---|---|
| Strategy | Complete the sunsetting of Lido on Solana by repatriating the remaining 13k stSOL to Lido Aragon Agent on mainnet |
| Objective | Recover accumulated SOL by seeking best execution for a sale to USDC and transferring to Lido Aragon Agent with minimal counterparty risk |
| Intended on-chain action | Deploy a Solana Squads multisig to receive stSOL from the Solana Treasury Multisig. Unstake stSOL to SOL. Seek best exection for a sale of SOL to USDC either through an OTC desk or through a DEX. Transfer USDC to Lido Aragon Agent. |
| Impact on treasury liquidity | WIll transform stSOL holdings to USDC for use in grants and funding |
| Execution complexity | Unstaking stSOL with the legacy tools made available in the sunsetting docs may face some technical complexity for signers. Minimizing counterparty risk during the sale and transfer is a priority |
| Maintenance complexity and overhead | None, one-time action |
| Summary of possible risks | - Unstaking process depends on sunsetted protocol → docs and sunset functions are still maintained - Counterparty exposure during transfers and swaps →Committee will evaluate the balance between best execution and counterparty risk and determine the best course of action to prioritizing risk minimization |
| Summary of potential benefits | - Ability to update and maintain stablecoin runway from the surplus generated by the protocol |
| Compliance with Treasury Management Principles | Yes |
| Proposer | Steakhouse |
| Agreement | Pending from TMC poll |
| Perform | Steakhouse |
| Input | Pending from community |
| On-chain execution stage | Proposal |
| Other notes | - Lido on Solana has been sunset since a DAO vote - Approximately 14k SOL remain on the DAO treasury on Solana which will be repatriated to the treasury to Aragon Agent on Ethereum as USDC - The Solana Repatriation Committee (SRC) multisig will evaluate at the time of execution whether to execute the transaction through an OTC desk or through a bridge directly into Aragon - No part of the SRC multisig will retain any spread and the best execution for the sale will either be guaranteed by DEXes on Solana or by an OTC desk selected - The amount of SOL to sell will be calculated based on the prevailing SOL price at the time, the TMC will not try to ‘time the market’ - This motion does not affect the ability of the DAO to employ other strategies or Aragon votes directly to raise stablecoins |
Reference links
- Lido DAO Solana Treasury Multisig: GQ3QPrB1RHPRr4Reen772WrMZkHcFM4DL5q44x1BBTFm
- Multi-sig owners and Maintainers list
- Unstaking guide
Execution
- TMC proposes executing the sale for USDC, avoiding taking a view on market conditions
- To support faster execution while still retaining security over Treasury assets, proposal will signal to Solana Treasury Multisig signers to transfer stSOL to a new 4/7 Solana multisig operated by DAO contributors, organized as a temporary Solana Repatriation Committee that will dissolve once the operation has been completed
- One of the multisig signers will deploy a self-hosted unstaking widget instance to be able to coordinate the transaction execution through a multisig wallet
- Once secured as SOL, the Solana Repatriation Committee will weigh options for completing the sale:
A: DEX + CCTP Bridge
- Using whatever DEX offers best execution in lot sizes that minimize price impact
- Using the Circle native CCTP bridge to transfer USDC directly to the Lido Aragon Agent address on Ethereum mainnet
B: OTC Desk + Transfer
- Using whatever OTC desk offers best execution to secure USDC on Mainnet
- Transferring from a Mainnet Solana Repatriation Committee Multisig to the Lido Aragon Agent address
- Indicatively, the below show quotes on a consistent rate basis, with estimated price impact from Jupiter and two OTC desks:
| Option | Platform | Rate | Conversion Amount (SOL) | Indicative Fees/Price Impact | Total received | Total Received (token) |
|---|---|---|---|---|---|---|
| SOL to USDC | Jupiter | 143 | 13800 | 0.40% | 1,965,506 | USDC |
| SOL to USDC | Quote 1 | 143 | 13800 | 0.25% | 1,968,467 | USDC |
| SOL to USDC | Quote 2 | 143 | 13800 | 0.50% | 1,963,533 | USDC |
There are pros and cons to either approach:
| Rationale | Tradeoff | |
|---|---|---|
| 3rd party legal entity coordinates execution with OTC desk | Likely better price execution with 20-25bps range spread | Trust assumption during the process required in 3rd party legal entity and in the OTC desk selected |
| Multisig signers execute swap through a DEX and bridge | No trust assumptions required with 3rd party legal entities | Some trust assumptions necessary for bridging |
The Treasury Management Committee proposes to create a Solana Repatriation Committee with delegated authority to complete the Lido on Solana: Sunset proposal to choose the best execution they deem appropriate with a 4/7 threshold, taking into consideration risks and tradeoffs associated, and will describe the outcome in a post-mortem including the rationale.
Once the corresponding USDC has landed in Aragon Agent, the Solana Repatriation Committee will dissolve.
Members
Poll for Treasury Management Committee Members
End date 16-Oct-2024
TMC-3: stSOL repatriation proposal
- Approve
- Reject
0
voters