Proposal to exchange the eth of the treasury to usdt

The Fed will not likely be lowering rates until mid-late 2023 or even 2024.

An alterative to USDT is USDC, but I am not an expert on stable coins.

Keep in mind that the US government is looking into whether banks can hold crypto.

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My suggestion would be to make a simple proposal in which persons decide whether they want part of the treasury turned into USDC or DAI (effectively wrapped USDC, as the main collateral of DAI is USDC). With the market contagion I advice against holding USDT. While I am not a trader we might soon be at the bottom though, though I cannot assess this. Several other project may be on the cusp of going bankrupt, which will drive the price of ETH down further. I therefore suggest the following proposal:

AIP: 000X
Title: Changing % of the ETH treasury into DAI
Status: Active
Type: Process
Created: 19/6/2022

Summary

This proposal asks whether to convert all or part of the AssangeDAO treasury into the stablecoin DAI. The proposal suggests using DAI as a US-pegged but not US-regulated stablecoin.

Details

How much ETH should the AssangeDAO convert into DAI?

a) 10%
b) 25%
c) 50%
d) 75%
3) 100%
e) none of the above / discuss further

The proposal suggests that multisig owners check 1. uniswap, 2. Matcha, 3. Balancer, and 4. cowswap.exchange at the time of execution and then choose the one offering the best exchange rate including fees.

Please note that the author of this proposal is associated with cowswap.exchange, a spin-off from GnosisDAO.

Please note that the market conditions are changing extremely quickly at the moment and a decision will only be able to be executed when the proposal voting time is over.

Motivation

The current market condition is hostile with the crypto market crashing with severe loss of market price for ETH. As it is unclear how far the market will fall, the proposal asks the DAO to decide whether the treasury or part thereof should be changed into the stablecoin DAI to safeguard some or all of the treasury’s value.

2 Likes

This should go to a vote. I think there is enough agreement here that the community needs to make a decision and live with it.

Advice:

  1. Divide 50% of 100 ETH into two parts of 50 ETH each;
  2. Convert 50 Eth into Justice coins in multiple batches, for example, 10 Eth in each batch, 5 Eth in total at an interval of one hour; In this way, the possibility of a single transaction failure can be avoided, so that the distribution of exchange costs is even, and to a certain extent, speculators in the market can avoid the concentration of speculative counterbid.
  3. Add all the converted Justice coins and 50 Eth into the pool to set an effective interval; For example, the purchase cost price is the floor price and 0.01 is the ceiling price. This ensures that the Treasury does not buy less than the exchange rate.
    建议:
    1,将50%的100个eth分成各50个eth两部分;
    2,将其中50个Eth分多笔兑换为Justice币,比如每笔10个Eth, 间隔1小时一笔总共完成5笔;这样能避免单独一笔交易失败的可能性,使兑换成本分布平均,并且可以一定程度上规避市场上的投机者集中砸盘当投机对手盘;
    3,将所有兑换到的Justice币和50个Eth,一起加入池子,设置一个生效区间;比如,购买成本价为底价,0.01为顶价。这样能保证国库购买到的Justice币不会低于本次兑换价。
1 Like

I would suggest to make your proposal a separate one. I suggest we go for a simple Eth conversion proposal and split these topics up. The current proposal is only about safeguarding the treasury.

2 Likes

This market is already in the midst of an extreme slump, and there is no need to consider switching to stablecoins. Wait 6 months before thinking about it.

1 Like

Thanks, Silke. I agree with this proposal with one tweak to split the amount of the treasury changed to stable coin 50% DAI and 50% USDC just to spread the risk.

1 Like

Yeah. Spreading it, was also thing that came into my mind… Especially when we don’t know which currency to trust to 100%. It’s never good to have all eggs in one basket…

DAI is largely wrapped USDC (ca. 60% of the collateral backing DAI is USDC). One thing I would note is that Circle, the centralised issuer of USDC can blacklist USDC funds. This is not the case for DAI.

1 Like

I personally tend to agree with this. I put this up as the community seems to want to convert. I am just assisting in bringing this into the right format.

Possible… It’s somehow gambling. The slump happened on a vast majority on the market… Last year ETH also had a significant dip and rose in August again.

https://www.analyticsinsight.net/next-cryptocurrency-to-explode-in-2022/

Splitting would be definately less riskier. Keeping ETH also could make sense. For me it’s just a question how much we should keep \ split. I understand everybody in this thread here somehow.

There has been a slight recovery and a slight stabilisation. Any repsonse by any writer to put up these options as a proposal on snapshot? Who does this kind of work at the DAO.

thanks for clarifying.

Brother, as an important member of the community and a beneficiary of donations, can you come up with a development plan for the project so that the whole community knows where we will go in the future?

Hezi - I’m working on freeing Julian from Prison full time. Campaigning and advocating around the world. I’m going to need help to come up with a development plan, Some suggestions from others is that we need a technical/operations lead full time so the DAO can start moving in a positive direction.

2 Likes

There is no doubt that you have worked hard for Julian’s freedom, which can be seen in the publicity of various media. But there are a few points that need to be paid attention to in the current community construction:

  1. Many community members always think that you are hindering the normal operation of Dao (I think this may be a communication problem, maybe you can seriously express your attitude towards the development of Dao).

  2. Whether a full-time operation officer is needed is more sensitive, because the current treasury is indeed too poor, with only 200 eth. (Maybe this matter can be a proposal and the community votes to decide).

  3. The community governance charter has been dragged on for too long. Earlier, Ewill said that he would soon enter a normal track, but he suddenly disappeared, which gave a bad impression to the community members.

  4. At present, many early multi-signatures and volunteers have left the community. We should make adjustments to make the whole Dao work. (Many early people left the community, but there are still some people who are willing to work for dao for free and should play their role).

To start these tasks, a competent person is currently needed for overall deployment. Can you find such a person?

Gabriel expressed his attitude towards DAO early on, more than once, and wonders why there are still people spinning in place.