Treasury Management Proposal

Context

This proposal introduces a treasury management strategy to preserve and grow RAW DAO's treasury.

The treasury is the foundation of RAW DAO and with its current valuation can be a powerful tool to generate yield. RAW can use those returns to fund operations with very little risk and maintain its treasury as ongoing acquisitions are made.

We also need to diversify our holdings so as to reduce undesirable exposure to cryptocurrency volatility.

Proposal

Current treasury balance = ~490 ETH as of April 15 2022 Current price of ETH = ~2,000.00 USD

• Allocate 60% of the ETH treasury (294ETH) to USDC = ~USDC 588,000.00;
  • deposit ~65% of allocated USDC (USDC 388,000.00) to Aave: 1.48% APY + 0.25% APR stkAAVE = USDC 5,742.40 + stkAAVE yearly (variable).
• Keep the remaining 40% (196ETH) in ETH to fund operations and acquisitions;
  • deposit 50% of the remaining ETH treasury (98ETH) to stETH (Lido), 3.8% APR = 3.7ETH yearly.
• Execution of transactions will be handled by main vault signers and finance vault signers;
• Transactions will be executed fully once the proposal is approved via Snapshot.

Closing Remarks

Ensuring that the assets in the treasury are productive will lengthen the runway of RAW DAO's operations as it continues to fund operations and acquisitions.

Diversifying the treasury will also help to de-risk RAW's holdings by reducing exposure to the volatility of ETH.

This simple allocation will be improved by more sophisticated treasury management systems in future iterations.