SushiHouse Funds Redemption

Background

SushiHouse is a SetToken that was setup by Yam’s treasury management team to diversify into assets for bear market protection.

Unfortunately, the management team that was suppose to manage these funds are no longer in place and the tokens haven’t been actively managed since the start of the program.

Another proposal put up by Truda here contains more information on the asset amounts, and background information into the initial Treasury Management Proposal: sushiHOUSE - Revival

Proposal

With the recent development of the current market / macro condtions, some members of the community have suggested the idea of redeeming these assets from the SushiHouse to the Treasury and to swap the assets for stables to secure funds for the future.

Current amounts of the SetToken are:

1,228.5 ETH

1.57mill DAI

33.56 WBTC

40,945 SUSHI

231,272 YAM

Proposal will be in two parts:

  1. To redeem underlying tokens from the SetToken to be claimed by the Treasury.
  2. Discussion into selling off the underlying assets into stables. A poll will in place to determine if we should sell off all of the assets (except for Sushi) into stables.

Additional Notes

With the passage of Kanpai, 10% of fees collected are currently being distributed to the Treasury in the form of WETH and USDC (50-50). Because of this, others believe we don’t need to take on additional exposure to these assets and that the Sushi contained in the treasury gives us upside still to the market if things were to turn around.

This is also would help us be better situated so that running costs are not paid for by selling off Sushi, and rather tapping into the stable reserves for monthly bills and upcoming costs with legal, bringing on leadership, etc.

  • Redeem SushiHouse Funds to Treasury
  • Leave Funds in SushiHouse

0 voters

  • Sell Assets Into Stables (except for Sushi)
  • Keep As Is

0 voters

3 Likes

I agree with redeeming these assets from the Sushi House to the treasury
but sell all of the assets (except for Sushi) into stables
I think it’s something we should think a lot about before doing that

Because perhaps selling it now will make losses because the market is low and it may rise later
I think there should be someone with a plan and a vision to manage the assets of the treasury in a way that achieves profits for Sushi and be responsible for that and focused on it
and he can develop a plan and present it to the Sushi community for discussion and vision should be integrated

2 Likes

If the market rebounds the value of the treasury rebounds harder due to how concentrated it is in Sushi. Shouldn’t be speculating on eth price. My pov is add cash to balance sheet and focus on shipping great products & services.

5 Likes

I dont necessarily think its bad to hold ‘the majors’ … ie ETH & BTC, for a little diversification. Beyond that, i dont think we necessarily need to be holding coins like YAM or any other altcoins unless they are serving a purpose (liquidity voting etc)

4 Likes

Definitely a good idea to redeem and stabilize on the funds. Not too sure if the YAM is worth holding, but everything else seems fine. BTC and ETH aren’t going anywhere so might be worth holding those… no clue how they’re going to hold up over the next few months though. Curious what the average buy-in on those are vs. where the market is right now.

Edit*: Token Transfer | Etherscan for the curious

Here’s the set details on their site: TokenSets - Asset Management Simplified

We’re down about 66.37% from the top of what it was worth.

2 Likes

I am all for the redeeming part, but I think a partial swap of the assets would be better.

YAM is totally useless, and I think that would need to be changed, but changing everything to stable would be unwise IMO. The UST crash has shown that stable can be very unstable. So, I would prefer that YAM would be changed into TOKE (to direct more liquidity to SushiSwap) or ETH. Furthermore, IMO a % of the asset be used to earn passive yield in Kashi by lending this would boost this product of SushiSwap because the liquidity of it is still on the low side.

1 Like

My immediate view is that it would make sense to redeem SushiHouse funds to the treasury. Any move that buttresses the treasury in the current market environment, would be wise.

Selling all assets except for Sushi, may not make sense. We’ve seen what lack of diversity can do to other treasuries recently.

I’d have no problem offloading YAM. Not sure there is much value there. Could also seeing diversifying DAI into some USDC. But entirely removing WBTC and ETH at current lows, feels almost unnecessary.

1 Like

I think it would be better to add it only in the treasury after the signer rotation.

Or even in another treasury (new one) for security reasons :thinking:

1 Like

Would probably agree to that. No reason to add all these funds to treasury while we’re considering rotating out some signers. If we need to rotate signers for any number of reasons, we should hold funds where they are currently.

Not sure we need to have a separate treasury. That may make it difficult to keep track of all funds. Funds which contribute to the overall value of Sushi protocol. Would like the market to be able to easily see our value.

SushiHouse tokens are already held by the Treasury so technically funds are under Treasury currently.

More so this proposal is to get ball rolling on breaking down SushiHouse tokens and then deciding if we should make our DAO’s balance sheet heavily weighted towards stables or not (not including the Sushi reserves).

Another caveat is we are building reserves in ETH through Kanpai so after about a year or so we’ll be back to this same amount of ETH that is in SushiHouse. We also have extreme exposure already to the market with our reserves due to majority of Treasury being in Sushi. So is it worth keeping that other portion of our funds at risk of volatility and market conditions for potential upside when the upside is already present through the Sushi that’s there.

I think diversifying into a basket of stables: USDC, USDT, and DAI would make sense.

2 Likes

Okay, good to know. So, your considerations would be to offload the ETH and WBTC as well? Move those to a basket of stables?

I’d probably still have some reluctance to sell off the majors that have a greater opportunity to bounce back than others. I don’t expect it any time soon, but probably worth maintaining those.

Much more risk averse to adding any funds to Tether with potential risks of depegging. Would rather see us hold ETH and WBTC.

Would probably feel good with some mix and match. Sell some WBTC and ETH for some DAI and USDC. Maintain nice portions ETH & WBTC.

Yeah my feeling is that it’s better to secure what we can in stables (currently around ~3.7m worth including the DAI) and we use this as our base for shoring up / building out the balance sheet to work from here on out. Then we can talk more about the revenue that comes in through Kanpai, and ideal amounts/percentages of assets that makes sense for the DAO to keep on it’s books for the long haul.

Currently we’ve only got 1.5mil worth of DAI in the treasury and 100k worth of USDC, so important to at least establish a base of as much stables as we can imo

2 Likes

Reasoning is really fair and thoughtful.

Neil’s comment aligns with the Sushi team’s ops balance needs over the coming 12-18 months. Having these funds liquid in stables would provide the team with scaling options regarding personnel to help us deliver roadmap items more quickly.