Treasury Reserve Assets: ibAlluoUSD/ETH/WBTC

This is a proposal to take two treasury actions that aim to diversify the treasury and earn yields. The actions are:


1. Withdraw the DAI-MKR liquidity from Sushiswap, swap MKR to DAI, and deposit the DAI into ibAlluoUSD, a interest bearing token that earns 7% APY

2. Take the 3.77 ETH, 0.03 WBTC and deposit it into ibAlluoETH/WBTC to earn about 5% APY

Background

Ricochet V1 supported DAI>>MKR and there was funding allocated to provide liquidity. DAI>>MKR is not supported in V2 but the liquidity stayed in that pool.

Alluo’s interest bearing USD stable coin (ibAlluoUSD) earns its yield by depositing USDC, USDT, and DAI into protocols like Curve, Convex, Harvest. The yield is voted on by token holders and a yield spread is paid to (or paid by) the ALLUO token holders. Additionally, ibAlluoUSD has native super token functionality. ibAlluoETH/WBTC function the same as their USD version but have interest rates of 5% instead of 7%.

Justification

There’s a yield to be earned on the idle funds in the treasury. Depositing into ibAlluoUSD/ETH/WBTC produce a good yield and increase the TVL for a project working within the Superfluid ecosystem.