This proposal will re-balance the treasury to meet the following risk criteria:
Beta (vs ETH): 0.7
Correlation (vs ETH): 0.6
Standard Deviation (vs ETH): 1
This is the "medium" level from the risk criteria developed by @Krugman and can be seen here: https://docs.google.com/document/d/e/2PACX-1vSCNRXqpIUTFS8AfHrdLJbNox2yRnvWV5EO4dySw3kuVlnwhq07X51Z-ZdUw393ReX1nszf4GXbGv1G/pub
The target allocations for our large groupings of assets will be:
ETH - 34%
USD - 33%
DEFI (DPI + strategic assets) - 33%
At the same time, it will set limits on the percentage of the treasury that the treasury holds in strategic assets, based on utility and market conditions (mainly liquidity):
Sushi - 6% (Currently ~9.3%)
UMA - 5% (Currently ~2.7%)
INDEX - 3% (Currently ~7%)
Gitcoin - 1% (currently 0.6%)
Read the full Proposal and Discussion here: https://forum.yam.finance/t/yip-80-yam-treasury-rebalancing/1512
In order to meet these criteria, the treasury will sell the following assets for stablecoins:
13% (~$420,000) of the treasury's ETH
16% (~$330,000) of the treasury's DPI
59% (~$356,000) of the treasury's INDEX
46% (~$384,000) of the treasury's Sushi
These sales will buy either USDC or DAI. We expect this to roughly double the amount of stable-coins in the treasury. If there is a large change in the market before the on-chain vote then these numbers may change slightly to meet the risk criteria outlined above.