Summary
This proposal outlines a new strategy for managing the Timeless DAO treasury, focusing on optimizing asset allocation between major assets and cash equivalents to strengthen yield generation while maintaining a balanced approach to risk management. The proposed changes ensure that the DAO can fulfill its obligations related to existing and upcoming service providers, as well as the Immunefi bug bounty program.
Update: It was also proposed to allocate 100% of the LIT-WETH BPT owned by the Timeless treasury to the following Bunni Pool LIT/WETH range: https://bunni.pro/pools/ethereum/0x89556c9d2b44c20dc367bf24fa86e5f1f4e44c7f/0x55f345f2d01024b6485fe2700f0f05f60b015b0f. (This range is subject to change according to LIT volatility in the coming days.) A DAO-owned concentrated liquidity position will strengthen the depth of liquidity on the most popular DEX and facilitate the trading operations of Bunni-LP stakers and the onboarding of new users. The goal is to not monitor this position daily, so the range should be wide enough to cover different volatility scenarios.
Motivation
The current allocation of assets in the Timeless DAO treasury has a significant portion invested in major assets, such as WETH, stETH, and swETH, while maintaining a smaller portion in cash equivalents like USDC. To improve the DAO's yield generation potential and ensure sufficient liquidity for upcoming expenses, we propose adjusting the asset allocation to strike a balance between yield opportunities and risk management.
Current and Proposed Allocations
Please note that the percentages for each allocation are final. The absolute amounts allocated to each position will be determined at the time of transfer if this proposal reaches quorum and the majority of voters support it. The current values were snapshotted on March 28, 2024.
| ASSET | BALANCE* | Current allocation % c/c total majors/cash equivalent assets | New treasury allocation 2024 |
|---|---|---|---|
| WETH | $1,215,400.00 | 56.89% | $213,648.40 (10.00%) |
| dWETHV3 (Gearbox) | $149,553.88 (7.00%) | ||
| apxETH (Dinero) | $149,553.88 (7.00%) | ||
| STETH | $240,000.00 | 11.23% | $299,107.76 (14.00%) |
| swETH | $122,200.00 | 5.72% | $213,648.40 (10.00%) |
| rETH | $24,000.00 | 1.12% | $256,378.08 (12.00%) |
| sfrxETH | $8,000.00 | 0.37% | $0.00 (0.00%) |
| aWETH | $213,648.40 (10.00%) | ||
| aUSDC | $640,945.20 (30.00%) | ||
| USDC | $526,234.00 | 24.63% | $0.00 (0.00%) |
| USDC yVault | $650.00 | 0.03% | $0.00 (0.00%) |
| Total majors/cash equivalent assets | $2,136,484.00 | 100.00% | $2,136,484.00 (100.00%) |
| Current macro allocation | % of total | New macro allocation |
|---|---|---|
| Majors | $1,609,600.00 (75.34%) | $1,495,538.80 (70.00%) |
| Cash equivalent | $526,884.00 (24.66%) | $640,945.20 (30.00%) |
| Total | $2,136,484.00 | $2,136,484.00 |
The proposed changes involve:
- Reducing the allocation to WETH from 56.89% to 10.00%.
- Splitting the allocation of dWETHV3 into two: 7.00% allocated to Gearbox dWETHV3 and 7.00% allocated to apxETH (Dinero) to reduce risk exposure on high-yield LST derivatives.
- Increasing the allocation to stETH from 11.23% to 14.00%.
- Increasing the allocation to swETH from 5.72% to 10.00%.
- Increasing the allocation to rETH from 1.12% to 12.00%.
- Removing the allocation to sfrxETH.
- Introducing aWETH with a 10.00% allocation.
- Introducing aUSDC with a 30.00% allocation.
- Removing the allocation to USDC and USDC yVault.
Overall, the proposed changes will result in a 70%/30% split between majors and cash equivalents, compared to the current 75.34%/24.66% split.
Next Steps
The proposal will be amended with a Safe script if it is successful and passes the voting requirements.
These asset allocations will be revised no earlier than July 1st, unless unforeseen major events occur. The goal is to not have a treasury management burden or the necessity to create a new committee to manage it.
(*) Snapshot 2024-03-28
Off-Chain Vote
Timeline
Mar 25, 2024Proposal created
Mar 25, 2024Proposal vote started
Mar 28, 2024Proposal vote ended
Aug 25, 2025Proposal updated