DCA ibAlluoUSD to ibAlluoETH

This is a proposal to dollat cost average (DCA) the treasury’s ibAlluoUSD to ibAlluoETH over the course of 12 months.

Background

In a previous proposal, 7K USDC was DCA’ed into ETH using the USDC<>ETH market. The ETH was then added to the DAO’s Aave position. Going forward the DAO will be borrowing against its assets in Aave to reward contributors like Raid Guild.

The treasury has approximately 8K ibAlluoUSD. Ricochet Exchange has a market to DCA ibAlluoUSD to ibAlluoETH. The DAO can DCA here while earning yield on USD and ETH. This proposal suggests that the ibAlluoUSD is converted into ibAlluoETH over 12 months.

Proposed Treasury Actions

1. Stream 675 ibAlluoUSD/month to ibAlluoETH over the next 12 months
2. Unwrap and deposit ETH to Aave as needed to maintain collateralization requirements from the previous proposal

Justification

Markets are cyclical and there’s no doubt that we’re in a bear market. The play here is to use the stablecoins in the treasury to accumulate more ETH ahead of the next market cycle. This DCA will happen over 12 months to slow down how much risk the DAO is taking by following this strategy.