Modify DAO ETH Sell Ladder

Author: diddly (15560) Quorum requirement: 20% (9M) Vote duration: 14 days

The objective of this proposal is to modify the previously accepted DAO ETH sell ladder (https://vote.aavegotchi.com/#/proposal/0xc4a1181fa1d6ede81e71c195aab84a21c1431f8a8b28221100e42720b84c2df3), both due to significant underperformance by ETH since then, as well as a need to keep to conservative targets as a DAO. This proposal has two options for updated sell targets:

Option 1:

• Four equal tranches of 300 ETH sold at $5000, $5500, $6000, and $6500 values of ETH in $USD.

Option 2 (slightly more conservative):

• Five tranches:
  • One tranche of 150 eth sold at $4500 ETH.
  • Three tranches of 300 eth sold at $5000, $5500, and $6000 ETH.
  • One tranche of 150 eth sold at $6500 ETH.

DAO Treasury wallet for reference: https://debank.com/profile/0x53c3CA81EA03001a350166D2Cc0fcd9d4c1b7B62

Execution Strategy:

• Execution strategy remains as defined in the first proposal, however I would like to add clarifying details to increase the likelihood of successful execution:
  • Spot held ETH should be sold first, followed by Lido staked ETH, followed by rETH. The modification here is to sell Lido ETH before rETH, due to a higher risk profile of Lido.
  • When ETH $USD value reaches within 10% of a target, the ETH amount for that tranche shall be made ready for sale (withdrawn from staking if necessary and/or conversion to WETH) and a limit order placed on Cowswap set to execute at the target value. This should occur within 24 hours of reaching the 10% threshold.
  • The limit order must be closely monitored to ensure its successful execution; DEX limit orders are not guaranteed to be filled. Should the case occur that a limit order is either not filled or only partially filled upon reaching a sell target, the sale shall be manually completed within 24 hrs.
  • CYA edge case scenario: should ETH $USD value reach a defined sell target and the limit order fail to fully fill, and the ETH $USD value falls below the target before the sale is manually completed, the sale should proceed as soon as possible as long as ETH $USD value remains above $3000.

Due to the additional execution details potentially having a significant impact on profit, there are 5 options to vote on:

1. Ladder option 1, ACCEPT new execution details.
2. Ladder option 1, REJECT new execution details.
3. Ladder option 2, ACCEPT new execution details.
4. Ladder option 2, REJECT new execution details.
5. Reject this proposal.

On passage of this proposal, anyone who may be in a position to execute the tranche sales must shortly familiarize themselves with the Cowswap limit order system to be prepared in advance.