Almost a year ago, the Yam team came up with a bear market protection proposal (sushiHOUSE - A Treasury Management Proposal) to help manage a portion of Sushi’s Treasury.
However after their entire blow up (Meteoric Rise And Fall Of YAM Explained - Ethereum, DEFI - YouTube), the funds have never been actively managed anymore.
The sushiHOUSE contract (SetToken | Address 0x7b18913d945242a9c313573e6c99064cd940c6af | Etherscan) currently holds:
- 1,228.5 ETH
- 1.57M DAI
- 33.56 WBTC
- 40,945 SUSHI
- 231,272 YAM
I am proposing to allow the core team to regain full control of these funds and inject the liquidity into Kashi. This allows Sushi to earn fees from idle funds and hedge against the bear market.
- Increase visibility on Kashi and showcase how Sushi uses it’s own product to it’s advantage. Sushi’s developers can also use this example in their talks as a case study on the safety and security of Kashi’s battle tested contracts when presenting at various conferences
- Deepen Kashi’s liquidity and attract more borrowers
This proposal should only be added to snapshot once the core team publicly announces which pairs they plan to add the liquidity to.
I agree with the proposal.
The best would be to not swap most assets for other assets, excluding the YAM (it is useless), because having variation of assets is better for the treasury.
How about some stablecoin pools sponsored by some of the funds? I noticed digging around that some of the biggest pools on competitor platforms are DAI/USDC, USDC/USDT etc. The USDC/DAI pool on Sushi only has $25k TVL. The USDC/DAI pool on uniswap’s last 10 swaps were $20-85k each.
Support this - and a greater theme of ownership by the core team + bolstering liquidity.
Are we able to redirect it to the treasury itself as a first step? A $5mm jump is useful given continued market conditions and further diversifies holdings across stable and non-stable assets.
Let’s do it ! I think it’s also a good showcase of why diversified treasury is important if you compare the performances and usages possible of sushi house against the sushi treasury.
I believe this is best structured asan amount of $ earmarked for ops with approved discretion toward deploying as liquidity. It provides better flexibility and Sushi will be able to move quickly in regard to constantly evaluating the ROI & managing these funds.
Ops should only ever have enough funds to pay for bills for the next 30 days or so… all other funds belong in the treasury. Ops has held too many funds for too long already, let’s not make it worse. These funds belong in treasury. The team should grow Sushi (by building, marketing, partnerships, etc), not become an investment firm.
Preaching to the choir. No brainer, kashi needs bootstrapping and this is a good way to do that, with low risk, and multiple upsides.
Hmm, I agree with the part about not becoming an investment firm, but using treasury assets to deepen the liquidity of Kashi would benefit SushiSwap a lot. A lot of pairs only have a couple of hundreds available; this is often not even worth it to borrow, especially when gas is high.