Emergency Proposal: Balancing Stablecoin Positions to Maintain Treasury Value

Background

Following the failure of SVB (Silicon Valley Bank) yesterday, both USDC and DAI depeged and are currently fluctuating around 88 cents to 95 cents on the dollar. This was due to Circle (the company who issues USDC) holding $3.3B of their $40B+ reserves for USDC on Silicon Valley Bank and due to DAI being 1/2 backed by USDC collateral.

We do not have any direct exposure to SVB, but when this started to unravel yesterday, we moved all the USDC we hold in the company into USDT to preserve value and secured a solid ~99 cents on the dollar. We did not, however, do this with DAO funds as it would require a proposal to do so. The current price of DAI is $0.935462 (4M+ held in our treasury stablecoin position) and the current price of USDC is $0.921166 (1.1M+ held in the ICE-USDC LP).

Proposal

Give the team the discretion to balance the stable coin (stables to other stables) and LP positions in the treasury.

Rationale

We need to be able to act quickly to preserve as much value in the treasury as possible.