KIP-20: Aave & Curve Whitelist

Summary:

Seek permission to whitelist Aave & Curve for staking of idle USDC reserves.

Background:

The treasury has additional USDC reserve assets from KIP-13 that are not currently being utilized for liquidity provisioning. The Policy Team is seeking the tactical ability to stake idle USDC in Aave and Curve to mitigate depreciation from inflation and debasement.

This is NOT a long-term treasury strategy, but simply a tool to generate reasonable, low-risk yield on idle treasury stablecoins until they are allocated to a strategic initiative.

Risks: The main risk is smart-contract risk, which is minimal using a thoroughly audited platform like Aave or Curve.

Once funds are staked, it is relatively frictionless to exit the staked position. KlimaDAO could swap out of this particular position via DEXs, but it will lead to slippage. The protocol operates in a trust minimized system that is controlled via smart contracts, and thus risks are minimal utilizing our USDC in Aave.

See the forum post linked below under "Discussion" for full details and community discussion.

Proposal:

Allow the Policy Team the tactical ability to stake unallocated stablecoin reserves in Aave or Curve.