FORT-0003: Reallocation of Fortress DAO investments: 10% to Fodl USDC/USDC, 40% to native Avalanche yield farming

Previously, sFORT holders approved a proposal to allocate 50% of the Fortress DAO treasury to a leveraged USDC/USDC position on the Fodl Finance platform paying out approximately ~230% APR in position rewards.

Despite the proposal passing, there was substantial community concern about the downside risk of moving funds off-chain as well as the opportunity cost of not investing in on-chain Avalanche projects to bolster the overall Avalanche ecosystem.

The Fortress DAO team therefore proposes the following modification to the allocation of treasury funds:

10% of treasury funds will be allocated to the Fodl USDC/USDC position 40% of treasury funds will be allocated to native Avalanche stablecoin-based positions (e.g. yield farming) or for purchasing protocol tokens for native Avalanche platforms The exact allocation of the on-chain portion (40% of treasury funds) will be chosen by the Fortress DAO administrative team Any changes to the allocation of the on-chain funds will be clearly communicated to the Fortress DAO community within 24 hours of said change

We believe that this proposal is advantageous for the following reasons:

Investing in projects on the Avalanche chain will kickstart partnerships between Fortress DAO and other on-chain projects Supporting the growth of the overall Avalanche ecosystem, which we believe has major unrealized potential, will benefit the growth of Fortress DAO The Fortress DAO community includes members with substantial expertise in or connections within the Avalanche community, and it would be remiss of Fortress DAO to fail to capitalize upon those opportunities

The Fortress DAO team is currently considering a variety of possibilities for the allocation of the on-chain component. We consider Trader Joe (JOE), Abracadabra (SPELL), and Synapse (SYN) to be trading well below their fundamental value given the quality and growth potential of these protocols. Furthermore, a number of compelling yield farming positions exist, such as 3poolv2 (Abracadabra), the Avalanche stableswap pool on Synapse, and AM3D stablecoins (Axial). Suggestions from the community are welcome at any time.