Use of Proceeds From 2/10 Mint

Background

Per Proposal #QmYpfjx, ETH proceeds from the previous two drops have been used to establish stable coin reserves, purchase DG, and add to ETH-DG and MATIC-DG positions. Today, we have ~1.9M DAI, ~$8M total across the ETH and MATIC DG LP Pairs, and $15.2M in DG in the 'DG Treasury.'

Proposal

For this week's drop priced in ETH, give the DG Team discretion to use the mint proceeds across the following 3 areas:

(1) At least 50% to stable coin reserves; (2) Purchase DG, which goes into 'DG Treasury'; (3) Add to ICE-USDC LP

Rationale

(1) Most of the assets in the DAO (e.g. Matic, LAND) are highly-correlated with ETH and the broader crypto market. It makes sense to have a large hedge against a market down turn. Today, we have 1.9M DAI out of $57M in the Treasury, which is a relatively small percentage of the DAO's assets.

(2) Based on the expectation that we will generate > $8.25M in revenue this month (> $100M annualized) and DG has a circulating market cap of ~$160M, we believe the token is significantly undervalued. Purchasing DG today for future use (e.g. distributions to xDG holders) is a good use of funds at this time.

(3) There's some value to having the ability to add to this position as the circulating supply of ICE increases, as this would have the net effect of reducing volatility, but we don't necessarily need to add to the $7.5M position imminently.

Note: If the vote is 'NO', the DAO would hold onto the ETH until another proposal were passed outlining the use of some/all of the funds.