TCD#55 Treasury Stablecoin Top-Up for May 2024

TCD#55 Treasury Stablecoin Top-Up for May 2024.

To adhere to TCD#46, the Treasury needs to top up its Stablecoin runway to cover 4 months of operating expenses each time the replenish occurs.
According to the Q2 budget, the monthly stable burn is at $353k.
Currently, there’s $967k in the treasury vault, with no planned stablecoin expenses till the end of the quarter.

Thus, at the end of May, the Stablecoin top-up requirement will be $91k.

To meet this requirement, the suggestion is to liquidate the Treasury’s bveCVX/CVX & bcvxCRV holdings. bveCVX is fully unlocked, so this action will not affect the remaining users’ liquidity.

The value of these holdings is currently $194k according to DeBank.

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Interesting announcement.

Obvious Pro:Topping up the treasury ensures financial stability and operational continuity for the next four months, reducing risks and enhancing confidence among all of us.

Possible Con:Liquidating bveCVX/CVX & bcvxCRV holdings might miss out on potential future gains from these assets, potentially reducing long-term treasury growth.

Overall, it sounds like a positive move.

we sold for $2.78 (ref), convex is down >25% since then

the position was really a leftover from when the DAO was heavily involved in the convex incentives/voting markets