Treasury Management: Convert Aavegotchi Treasury’s DAI to sDAI and sFRAX
AI summary
This proposal suggests that the Aavegotchi DAO convert its 6.5 million DAI stablecoins into sDAI and sFRAX. Specifically, it would allocate $3.25 million to sDAI and $3.25 million to sFRAX. The goal is to generate passive income for the DAO treasury, estimated at over $300,000 annually, and to diversify its stablecoin holdings. sDAI and sFRAX are tokens that represent staked DAI and FRAX, respectively, earning yield from underlying protocols.
If passed, the Aavegotchi DAO treasury will begin earning yield on a significant portion of its assets, increasing its financial sustainability. This move benefits the DAO by providing a new revenue stream and diversifying its stablecoin exposure, but it introduces new smart contract risks associated with sDAI and sFRAX protocols.
Voting results
🐳 Whale votes
0 votes > 5% VPFull proposal
Author: 0xlide(#9345) Quorum requirement: 20% (9M) Vote duration: 7 days XP Reward: 10 XP for each Aavegotchi in voter’s wallet Summary
Summary
This proposal suggests converting the held DAI on Ethereum into sDAI and sFRAX to increase the income of the Aavegotchi DAO.
Motivation
AavegotchiDAO holds 6.5 million DAI in its treasury, and by converting this into 3.25 million sDAI and 3.25 million sFRAX, the treasury can generate an annual yield of over $300k. Also, splitti…