SushiSwap (SUSHI) has proposed an bold technique to diversify its authorities bonds, which presently include 100% of its native SUSHI tokens.
The “Treasury Diversification Proposal” units out a roadmap for making a extra balanced and resilient treasury. The principle targets of this initiative are as follows:
- Volatility Discount: Lowering the dependence on SUSHI belongings to stabilize the worth of presidency bonds.
- Growing liquidity: making certain that the Treasury has ample liquidity for operational and strategic wants.
- Generate returns: Leverage diversified belongings for staking, lending or liquidity to generate passive revenue.
Sushi DAO proposes to re-divide treasury belongings into three classes by liquidating SUSHI tokens:
- Stablecoins (70%): Many of the treasury can be transformed into stablecoins equivalent to USDC and USDT to supply stability and liquidity.
- Main cryptocurrencies (20%): A portion can be allotted to established belongings equivalent to Ethereum (ETH) and Bitcoin (BTC) for diversification and potential progress.
- DeFi Tokens (10%): A discretionary allocation primarily based on complete risk-reward assessments for high-potential decentralized finance (DeFi) tokens equivalent to AAVE.
The Treasury’s native belongings can be regularly liquidated utilizing a dollar-cost averaging (DCA) technique to reduce the influence available on the market.
*This isn’t funding recommendation.