STIP 1: Treasury Management

Symmetric Telos Improvement Proposal #1

Treasury Management

Purpose:

To rebalance the treasury and protect its future while safely pursuing growth strategies for the treasury, and to align stakeholders towards these two goals.

The current state of the treasury:

The Symmetric treasury currently holds approximately $19,000 in assets unrelated to tSYMM. The treasury also has roughly $100k worth of tSYMM-related assets (tSYMM and vtSYMM position). These assets belong to the the community of vtSYMM holders who decide its future and use.

Current makeup of treasury assets:

Currently, the breakdown of these assets is 61% in TLOS-related assets or LP positions (TLOS, sTLOS, sTLOS LPs), 35% in Stables (USDC, USDT, USDM), less than 1% in blue chip assets (ETH and BTC lp positions), and 3% in other tokens or related LP positions(MST). A detailed breakdown can be found here: https://docs.google.com/spreadsheets/d/1rSMZxXQPXH1d5zl_Gm73tcEN1-P9IfiQkdIDYQ3-nhQ/edit?usp=sharing

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Proposal:

In working towards the aforementioned goals, I suggest a reallocation of treasury resources. Specifically, I suggest a high-level breakdown:

Section 1, Treasury Allocation:

40% TLOS, 40% STABLES, 15% BlueChip Assets, 5% other

At a more granular level, I suggest:

1. Converting the 40% TLOS to Symmetric’s sTLOS-wTLOS LP to increase yield. Currently, we have about 17% of the treasury in that pool.
2. Converting the 40% stables into Symemtric’s USDC-USDC LP with the same overall goal.
3. Depositing the 15% BlueChip assets into the BTCb-ETH-USDC pool.
4. Keeping the 5% other in Symmetric’s MST-USDM pool or various other token-specific yield-bearing strategies.

Section 2, Treasury Maintenance

Additionally, I propose the treasury is regularly maintained (at least once per month) our treasury towards these weights, and that the team is empowered to do this using the Telos Safe multi-sig wallet (https://safe.telos.net/balances?safe=tlos:0xBd8911e8477a7279f085F473f46A6b9AB54385E7)

Section 3, Approved Treasury Assets

Finally, I propose that the Symmetric Treasury limits its makeup to the following assets: TLOS and its derivatives USDC USDT USDM BTCb ETH MST

Conclusion:

I believe this takes a significant step towards building a long-term treasury strategy that supports the growth of the treasury and the protocol. Step one is for the community to discuss the proposal and discuss any potential changes. Step two will be the proposal going to a formal vote in 3 days.

Submitted by Wdude, August 28, 2024