Vote on Diversifying Treasury Assets

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In light of the events that have transpired over last weekend, we wanted to share some information about Stader DAO’s asset holdings, and query the Community about potential next steps to further buttress our financial position.

The 3 most frequently-asked questions in the past 3 days have been:

  1. What is the exposure of Stader to Silvergate, SVB, Signature, and USDC?

  2. can give a % breakdown of the treasury in stables / currencies / banks so we can appropriately appraise the risk?

  3. Is the treasury management strategy going to change now that we have seen things are not so stable as they look?

Here are the answers:

1. What is the exposure of Stader to Silvergate, Silicon Valley Bank, Signature, and USDC?

No exposure to Silvergate/ SVB/ Signature. Exposure to USDC as explained in #2.

2. Can you give a % breakdown of the treasury in stables / currencies / banks so we can appropriately appraise the risk?

As of now, there are ~$24 million in the stable coin treasury, 100% held in a non-custodial manner in multisig wallets, and split across the following assets:

  • 74% in USDC
  • 14% in DAI
  • 6% USDT
  • 4% in ETH
  • 3% others

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3. Is the treasury management strategy going to change now that we have seen things are not so stable as they look?

It seems prudent to further diversify treasury assets over the next few days. We wanted to hear ideas the community about the onchain / offchain assets they feel are most logical to diversify into (US treasuries, Fiat, other stables, Ether, increasing or decreasing any of the current percentages…)

Please let us know below!

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Why don’t we make SD staking a thing so we can vote that way. But yeah, makes sense to go into ETH, especially now.

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SD staking is going live and xSD wll be the weapon of choice for onchain governance. For now it is still liquid SD as far as I understand.

Offchain gov is (via forum) is always a preliminary stage ahead of onchain gov.

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Definitely it is sensible to have more exposure to ETH, more exposure to stores of value like Gold and Bitcoin, and further diversify the exposure to USD into things like T-bills.

But beware of the bank you will be using for that !

What about
30% USDC
20% T-bills
10% DAI
10% USDT
10% ETH
10% BTC
10% Gold

Perhaps holding a good amount of FRAX or LUSD would allow you to get some cool partnership with Frax or Liquity, too?

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I would DCA all those stables in ETH until we have enough stables left for the company to operate a couple years.

We can always use that massive amount of ETH to borrow against incase we need extra liquidity.
I would go risk on instead of risk off, knowing that we will be here for years to come.

Ofcourse be prepared to take profits with our treasury as markets over heaths coming bull.

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Imho, having a higher exposure to BTC/ETH is safer rn even though the higher volatility.
I would go for a 40% BTC/ETH, 40% stables bringing also LUSD into the table as @Mariella said (no USDC involved as with DAI or new FRAX model). I would keep USDC as it’s still backed by BlackRock and they are not going to let it die, and USDT.
With last 20% I would go for 2 options depending on the strategy and risk toleration:

  • Safe option: T-bills, Gold, Silver, etc.
  • Maybe exploring to use a small % to get some protocols gov tokens like BAL or AURA to gain higher bribes efficiency, even more with ETHx deployment in the near future (not sure if it works this way, just thinking out loud. Also Idk how much liquidity would be needed to have enough BAL/AURA to make a difference in the bribes wars).

TLDR

  • 40% BTC/ETH
  • 40% USDC/USDT/LUSD
  • 20% T-bills/Gold/BAL or AURA
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@YellowCake indeed as @Mariella pointed, once xSD goes live, xSD will grant governance. For now, normal SD grants governance (in ETH mainnet), as you can see on the previous votes held in snapshot.org/staderdao.eth.

@mariella @dovah @randomtard thanks a lot for your inputs so far:

  • diverse stables
  • T-bills
  • stores of value like BTC, ETH and Gold,
  • utility holdings to kickstart tokenomic and DeFi flywheels like AURA.

For T-bills, we can use onchain solutions like Ondo Finance. They have a safe and interesting LLP model.

For Gold, we can use onchain options like PAXG or XAUT. I personally would need to study more, right now they are trading at a premium vs paper gold.

For BAL/ AURA, seems a good idea but you can always bribe via Hidden Hand and get a better bang for your buck than holding I guess. I probably would just hold ETH. And Protocol-Owned-Liquidity with ETHx in some months after roll-out… :eyes:

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First, the team must have faith in their tokens. Team, don’t run away from the truth. The project is originally a financial game. There are multiple mortgage cycles involved in lending。
Then most people in the market will care about the token price of this project. 。
The price trend of the token. Economics reflects the degree of development of the project as well as tokens.
In Addition ，The team must have faith in Bitcoin. 。If the project side doesn’t have faith in bit. Then their goal is ultimately to harvest institutions or harvest retail investors. 。
I don’t love this industry at all. 。
At least to configure with ethereum.The same amount of bitcoin. ，This is the minimum belief in the industry. 。

I see that the transparency of this team, including security, is still very good. 。

I am now I have a lot of confidence in this project.
Now I hope the team doesn’t delay any longer. The time of the pledge. xsd ethx It should be launched as soon as possible.

ldo rpl defi Leading 。They have taken up a large market share. 。There aren’t many chances left for the rest of the contestants. 。

From Start to pledge to publicity as well as let some It takes time for users to discover this project. 。

Instead of waiting until April. Bottom 。At that time, the user had already chosen other projects, and it was too late to understand the project. 。

Also 。The most important thing is not to post an article before the token price goes up，

Market value management of tokens 。Should Pull the plate to a certain extent. 。For example, the price of five dollars. 。At this time $ 4.50.coinlist Investor Will not sell.
Because it exceeds their investment price, but there is not much profit. 。
Release the good news of the project.

And then most people will think the project is valuable. 。And then they went to pledge Ethereum. ethx tvl It will grow rapidly.

I believe in the team. Definitely understand these reasons than the user.

It just costs a lot of money for tokens to go up. The associated selling pressure and risk need to be calculated.

Need a certain pattern. If the project party believes that the money earned by the previous financing is enough,
Enough to enjoy life, enjoy life.

Then the project doesn’t make much sense. After all, the birth of Bitcoin revolves around finance and revolves around token economics.

If we ignore the price of tokens, talk about stories, draw cakes. To imagine the future, it is unrealistic.

Most of the investors in the market must pay attention to the price.

Token prices are the best response.

If you do not acknowledge the above point of view,

Then all the tokens should be destroyed. Just use the US dollar instead.

But I still want the team to be able to Earnest To deal with this matter.

Thank you.

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Thanks for your views @web5. I think some info got lost in translation. Can you voice out your thoughts here too? Telegram: Contact @staderlabs_chinese

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Buy Matic token next to ETH

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Here are the thoughts of @web5 after taking on StaderLabs Chinese Community Group. In bold the ones relevant to the Treasury Diversification conversation:

1）great transparency and security by stader group
2) Confident with stader’s team
3) Please launch SD token staking
4) Stader can be seen to expand its marketshare in a great manner
5) Please dont delay any plans in the pipeline, due to competitiveness
6) Other competitors are coming up with innovative ways of staking EG: Pendle RPL
7) Importance of SD token price, needs to be more stable
8) Market capital and liquidity needs to be monitored closely
9) Team can consider to use its treasury to diversify into tokens such as BTC
10) Trust and recognition will be gained as team keeps moving and making the move move forward
11) Increase effective marketing plans globally
12) he suggest stader to participate in the upcoming event in hong kong on April 12 WEB3
13) Overall he appreciates Staders effort and wishes the very best to stader’s growth in the coming years