[GIP-203] Partial diversification of treasury

Author: nikitakle

Summary This proposal suggests partially rebalancing the DAO treasury by selling a portion of its WETH accrued fees to USDC, as well as rebalancing some stablecoin dust inside multisigs to USDC as it simplifies any outgoing payments. The addresses in question are:

1. https://etherscan.io/address/0x3E965117A51186e41c2BB58b729A1e518A715e5F
2. https://etherscan.io/address/0x7b065Fcb0760dF0CEA8CFd144e08554F3CeA73D1 This proposal does not infringe on the Reserve Fund assets though, those don’t need to be touched at the moment, they are still under GIP-124. You can see those in here https://debank.com/profile/0x3e965117a51186e41c2bb58b729a1e518a715e5f. Note: the WBTC portion is for now planned to be used for another integration onboarding, which should follow in the next GIPs. Overall, this proposal is not about trading or making yields, it’s about rebalancing the accrued fees for the necessary operational expenses, rebalancing dust essentially.

Motivation Diversify the treasury by adding a stable USDC component. Provide stable funding for ongoing compensation and operational expenses. The treasury is overall healthy with a 2-year runway possibility at the current burn rate, but rebalancing every month would prove to be quite a nuisance. So regardless of the ETH price today, it’s easier to simply swap a third of the WETH inside the fee guard into USDC. That would imply that, for the next quarter, a new proposal like this would not be needed. Please note that there is also ETH inside Aera (Gauntlet) and inside the Reserve Fund, so it’s not even a third of ETH by any means. It’s just a smaller portion of the accrued fees. This proposal is done simply for convenience, and not as any collective trading effort. The second part of this proposal is to approve swapping smaller dust from the fee and financial guards into USDC, which would be around $150K in total. That is DAI, crvUSD, and USDT. GHO can be untouched in both guards, to build out an alignment with Aave. WBTC inside the fee guard (not the financial guard) can be swapped to USDC as well. There is enough excess WETH, WBTC, and other funds in the Reserve Fund, which you can read more about in here https://docs.gearbox.finance/overview/liquidations/insurance-fund.

Next Steps If this proposal were to pass, the fee guard would swap 100 WETH to USDC, as well as WBTC (inside fee guard), crvUSD, DAI, and USDT. Gearbox DAO also witdrawls its position from Idle.