Cofounder of SIZE here. SIZE is an on-chain OTC protocol — treasuries can diversify & sell tokens without slippage or market impact. We recently published a blog on treasury management, encouraging DAOs to diversify. This is especially important for longstanding protocols like Sushi that are staples in the ecosystem, with plans of longevity.
Over the last 12 months, Sushi’s treasury has roughly halved (~$50M to ~$26M). While treasury diversification should be an ongoing conversation, it’s increasingly important to prioritize after the recent USDC depeg as well as current uncertainty across global markets.
Currently, Sushi’s treasury holds ~10% in stables. The price of $SUSHI is obviously low compared to ATH’s (~$1.09 today). That said, it is north of the price over the Fall during Sushi’s OTC with Goldentree.
Over the last few quarters, the price of Sushi has moved between ~$.90 and ~$1.50. It’s obviously impossible to time the markets and hedging to avoid downside is paramount. If SUSHI had sold $500k quarterly over the last few quarters, the average sell price would be on par with current price to ~$1.10.
We’d suggest moving towards 20-25% into stables which means selling ~$2-3M. Selling that amount in 2-3 tranches gives the community a chance to provide feedback on approach as well as obviously DCA’ing the price etc. Curious about the community’s feedback on a more sustainable and proactive treasury approach by moving towards:
- Adding blue chips into the mix to further hedge treasury, upside exposure.
- Selling on a quarterly basis versus annually.
Nic + Size Team