RAT-1: CryoDAO Collaboration

1. Problem CryoratDAO needs to procure diagnostic instruments to reach its first milestone.

Our Treasury is currently in ETH. ETH is severely underperforming. Markets are down.

CryoratDAO raised 246.37 ETH in presale, at the time worth over $900k. Since then, the price of ETH has fallen by over 50%, temporarily diminishing the total value of the Cryorat Treasury.

While there is no doubt that markets will rebound in time, CryoratDAO is currently in a suboptimal position, given that reaching the first milestone for the project requires the acquisition of a large diagnostics instrument. This need is immediate.

At the same time, CryoDAO currently holds >$520k in stablecoins, most of which aren’t earmarked for immediate needs.

2. Solution This proposal recommends that Cryorat holders approve a short-term loan from CryoDAO.
CryoDAO would temporarily extend a loan of stablecoins from its treasury to CryoratDAO under a short-term, no-interest arrangement. The primary purpose is to provide CryoratDAO with the operational liquidity required in the short term.

CryoDAO currently holds a significant amount of stablecoins, which are not expected to be needed for immediate operations. Conversely, CryoratDAO's treasury is predominantly in ETH, which is currently underperforming in market conditions. Converting ETH to stablecoins at this time would incur unnecessary financial risk, as analysis suggests the ETH market is set to recover within the next few months. In this scenario, maintaining exposure to ETH could prove advantageous for CryoratDAO, making a conversion to stablecoins at this time suboptimal. However, operational liquidity remains critical for CryoratDAO's ongoing activities.

We propose structuring this as a short-term, no-interest loan where stablecoins from CryoDAO's treasury will be made available for CryoratDAO operations. The loan is designed solely for operational use by CryoratDAO during the period of a maximum of six months, or until the value of 1 ETH corresponds to 3,000 USD, whichever is shorter.

CryoDAO would retain the right to request loan repayment at any time, should its needs for immediate liquidity change. No additional vote will be necessary to approve repayment.

This arrangement avoids the need for CryoratDAO to liquidate ETH assets under unfavorable conditions. For CryoDAO, the stablecoins in its treasury are not earmarked for imminent use, so extending liquidity support to CryoratDAO optimizes the available capital without incurring additional risk. For CryoratDAO, the stability provided by the stablecoins will ensure operational continuity and allow the DAO to maintain its ETH position, poised for market recovery.

For legal and accounting purposes, all stablecoin transfers under this proposal will be officially documented as short-term, non-interest-bearing loans. Both DAOs will reflect these transactions in their respective financial records under existing governance frameworks, maintaining clarity and transparency in the inter-DAO relationship.

The CryoDAO community must approve the loan before any disbursements. Upon the positive vote from CryoDAO and CryoratDAO’s communities, the DAOs are given the mandate to execute the loan under the principle of responsible Treasury management.

3. Requested Budget Approval of a no-interest short-term loan of up to 400k USDC.

4. Timeline Disbursement of loan: upon approval of the CryoDAO and CryoratDAO communities. Loan payback: within 6 months, or until the value of 1 ETH corresponds to 3,000 USD, whichever is shorter. CryoDAO retains the right to request loan repayment at any time.