TMC-6: Convert DAO Treasury stablecoins into sUSDS and update config on Easy Track and Aragon Finance accordingly

Proposals
3

Following up on TMC-6, the below are operational implementation details and guardrails for the TMC and the Lido Ecosystem / Lido Labs Foundations.

1. Cap on total yield-bearing stablecoins exposure

  • Scope: sUSDS and, once onboarded, regulated tokenized money market funds (TMMFs) held on behalf of the DAO.
  • Limit: Combined exposure to these instruments is capped at 15% of total Treasury (all liquid assets, marked in USD).
  • Process:
    • Assessed quarterly using end-of-quarter snapshots of DAO and relevant Foundation wallets.
    • If the cap is exceeded due to market moves or flows, TMC rebalances back to 15% or less during the following quarter, subject to liquidity and costs.

2. Minimum liquidity / runway requirement

  • Runway floor:
    Total liquidity in stablecoins, excluding whichever is greater of the sUSDS balance or the largest single tokenized money market fund position, must be at least 2 months of projected runway (based on latest budget and realized spend).

    In other words, for this test the TMC takes all stablecoin balances and subtracts the larger of (i) the total sUSDS balance or (ii) the largest single TMMF position; the remaining amount must cover at least 2 months of runway.

  • Definition of liquidity for this check:

    • Non-yield-bearing or near-instantly redeemable stablecoins (e.g. USDC, USDT, DAI and similar) as well as any sUSDS and TMMF holdings.
    • Held by the DAO Treasury and/or Lido Ecosystem / Lido Labs Foundations for operating expenses.

  • Priority:
    If the 2-month floor is breached, liquid stable balances are rebuilt first, before increasing allocations to sUSDS or TMMFs.

3. Diversification and onboarding of tokenized MMFs

Once regulated TMMFs are onboarded and practically usable:

  • Onboarding authority and criteria:
    The TMC is mandated to decide on onboarding individual TMMFs within the limits of TMC-6 and these guardrails. For each product, the TMC will consider, at a minimum:

    • Risk and return profile (including underlying asset quality and structure).
    • Legal and regulatory considerations (jurisdiction, investor eligibility, fund structure).
    • Counterparty and operational risk (issuer, custodian, transfer agent, tokenization stack).
    • Liquidity, redemption mechanics and settlement times.
    • Diversification and concentration across issuers, venues and chains.

    The TMC may decline or phase in exposure to specific TMMFs even if they are broadly available in the market, where it considers the risk/return or legal profile unsuitable for the DAO.

  • Equal split rule:
    Within the 15% yield-bearing bucket, allocations are equally split across all approved yield-bearing assets (sUSDS and TMMFs), unless:

    • A product is temporarily unavailable or illiquid, or
    • TMC documents a temporary exception (for example a phased ramp-up for a newly onboarded product).

  • Examples of potential TMMFs (subject to separate onboarding and due diligence):

    • BlackRock BUIDL (USD Institutional Digital Liquidity Fund)
    • Circle USYC
    • Franklin Templeton tokenized U.S. government MMF (e.g. BENJI)
    • Fidelity or similar institutional tokenized Treasury or money market products

  • Holding structure:
    TMMF positions may be held by the Lido Ecosystem Foundation and Lido Labs Foundation on behalf of the Lido DAO, and are included when checking:

    • The 15% yield-bearing cap, and
    • Overall Treasury composition (while the 2-month liquidity floor explicitly excludes the single largest sUSDS or TMMF position as described in section 2).

TL;DR – Operational rules under TMC-6

  1. Yield-bearing cap: sUSDS plus TMMFs at or below 15% of total Treasury, checked quarterly and rebalanced if needed.
  2. Liquidity floor: Total stablecoin liquidity, excluding whichever is greater of the sUSDS balance or the largest single TMMF position, must cover at least 2 months of runway; if breached, liquid non-yield-bearing stables are rebuilt first before increasing sUSDS or TMMF allocations.
  3. TMMFs: The TMC decides which TMMFs to onboard based on risk/return, legal and operational considerations, and then splits the yield-bearing allocation equally across all approved sUSDS and TMMF assets, with positions held by the Foundations on behalf of the DAO.
2 Likes
Pol Lanski Delegate Thread