[AGIP 112] Establishing an ETH Sell Ladder

Author: Dr. Wagmi (16635) Quorum Requirement: 20% (9M) Vote Duration: 14 Days

Objective: This proposal is designed to strategically manage the Aavegotchi DAO's Ethereum (ETH) holdings by establishing a structured sell ladder. The aim is to maximize returns while mitigating the impacts of market volatility and psychology.

Details of the Sell Ladder Proposal:

1. First Tranche: Sell 300 ETH in two equal parts within 24 hours if ETH valuation exceeds $8,000 per unit.
2. Second Tranche: Sell another 300 ETH in two equal parts within 24 hours at any ETH valuation above $10,000 per unit.
3. Third Tranche: Sell 300 ETH in three equal parts within 24 hours if ETH valuation surpasses $12,000 per unit.
4. Fourth Tranche: Sell 300 ETH in three equal parts within 24 hours at any ETH valuation exceeding $15,000 per unit.

Execution Strategy: • The sale of ETH should follow a specific order from the DAO's Ethereum treasury wallet: • Begin with unstaked ETH. • Proceed to rETH. • If necessary, unstake stETH and sell the resulting ETH. • All sold ETH will be exchanged for USDC (USD Coin). • The acquired USDC will then be supplied to Aave, which currently offers over 1 billion USD in capacity.

Rationale and Transparency: • This structured approach aims to provide clarity and predictability to DAO participants and investors. • It helps in minimizing the influence of market psychology and speculative behavior, especially in a bullish market scenario. • Assuming ETH reaches a valuation greater than $15,000 per unit, this strategy positions the Aavegotchi DAO to accumulate approximately $13.5 million in USDC, significantly enhancing returns on the initial $3 million investment in ETH.

Conclusion: The proposed ETH sell ladder is a prudent financial strategy, offering the Aavegotchi DAO a methodical and transparent approach to realizing gains. It ensures that the DAO's assets are managed in a way that is both strategically sound and aligned with the interests of all stakeholders.