Venus internal Treasury Management Proposal

Summary

This proposal aims to improve the vTreasury token management by creating opportunities to increase the protocol’s revenue through supplying assets to Venus for yield generation.

If approved, 7,724,346 USDC, 443,900 USDT and 132.2637 ETH ($382,241.80) will be supplied to the Venus market. These actions are projected to generate approximately $1,057,435 in annual revenue, based on current market conditions and amounts.

Details

The vTreasury is responsible for holding protocol reserves and liquidation fees, prior to the deployment of the Automatic Income Allocator, distributed based on the tokenomics. Currently, these tokens are not optimized and are held in their underlying denomination.

This proposal aims to manage: USDC, USDT and ETH, taking advantage of current market supply APYs in the Venus. The recommended actions are the following:

Supply 7,724,346 USDC in Venus, currently offering a 13% APY. Supply 443,900 USDT in Venus, currently offering a 12% APY. Supply 132.2637 ETH ($382,241.80) in Venus, currently offering a 1.5% APY.

By implementing these strategies, the estimated annualized revenues from the supplied amounts are $1,057,435. This estimate assumes that market conditions and token amounts remain constant.

It is important to note that if the protocol needs to utilize any of these assets, they can be redeemed from their vToken denomination and transferred in a single transaction, ensuring no additional steps are required for their use.

Conclusion

The idea behind this proposal is to optimize the vTreasury’s assets by investing in Venus yield-generating markets which could add an estimated annual revenue of $1,057,435. This strategy aims to maximize profits while allowing for the quick use of these assets, if needed, for protocol expenses or risk management.