Cryo-23: Cryorat Short Term Financial Collaboration

Submitted by: CryoCore Team Members: CryoCore

1. Problem ETH is severely underperforming. Markets are down.

Our sub-DAO, Cryorat, raised 246.37 ETH in presale, at the time worth over $900k. Since then, the price of ETH has fallen by over 50%, temporarily diminishing the total value of the Cryorat Treasury.

While there is no doubt markets will rebound in time, Cryorat is currently in a suboptimal position, given that reaching the first milestone for the project requires the acquisition of a large diagnostics instrument. This need is immediate.

At the same time, CryoDAO currently holds >$520k in stablecoins, most of which aren’t earmarked for immediate needs.

2. Solution This proposal recommends that CryoDAO temporarily extend a loan of stablecoins from its treasury to CryoratDAO under a short-term, no-interest arrangement. The primary purpose is to provide CryoratDAO with the operational liquidity required in the short term.

CryoDAO currently holds a significant amount of stablecoins which are not expected to be needed for immediate operations. Conversely, CryoratDAO's treasury is predominantly in ETH, which is currently underperforming in market conditions. Converting ETH to stablecoins at this time would incur unnecessary financial risk, as analysis suggests the ETH market is set to recuperate within the next few months. In this scenario, maintaining exposure to ETH could prove advantageous for CryoratDAO, making a conversion to stablecoins at this time suboptimal. However, operational liquidity remains critical for CryoratDAO's ongoing activities.

We propose structuring this as a short-term, no-interest loan where stablecoins from CryoDAO's treasury will be made available for CryoratDAO operations. The loan is designed solely for operational use by CryoratDAO during the period of a maximum of six months, or until the value for 1 ETH corresponds to 3,000 USD, whichever is shorter.

CryoDAO would retain the right to request loan repayment at any time, should its needs for immediate liquidity change.

This arrangement avoids the need for CryoratDAO to liquidate ETH assets under unfavorable conditions. For CryoDAO, the stablecoins in its treasury are not earmarked for imminent use, so extending liquidity support to CryoratDAO optimizes the available capital without incurring additional risk. For CryoratDAO, the stability provided by the stablecoins will ensure operational continuity and allow the DAO to maintain its ETH position, poised for market recovery.

For legal and accounting purposes, all stablecoin transfers under this proposal will be officially documented as short-term, non-interest-bearing loans. Both DAOs will reflect these transactions in their respective financial records under existing governance frameworks, maintaining clarity and transparency in the inter-DAO relationship.

CryoratDAO community must approve the loan before any disbursements. Upon the positive vote from CryoDAO and CryoratDAO’s communities, the DAOs are given the mandate to execute the loan under the principle of responsible Treasury management.

Rationale CryoratDAO is CryoDAO’s sub-dao, meaning that the CryoDAO community is one of its founding bodies. In return for facilitating Cryorat’s presale, CryoDAO now holds a significant amount of $cryorat tokens. While the loan would represent a goodwill activity and restate the dedication to our mission, it is in CryoDAO’s community interest that the CryoratDAO and its token perform well.

The loan would slightly obviate the risk of swapping ETH into stablecoins at the time of ETH underperformance.

3. Requested Budget No-interest short-term loan of up to 400k USDC.

4. Timeline Disbursement of loan: upon approval of the CryoDAO and CryoratDAO communities. Loan payback: within 6 months, or until the value for 1 ETH corresponds to 3,000 USD, whichever is shorter. CryoDAO retains the right to request loan repayment at any time. No vote will be needed for repayment.