Boosting Shutter DAO 0x36’s Treasury Management and Ecosystem Growth with Glo Dollar

Shutter DAO DAO Proposals
1

Context

This proposal is inspired by Continued Discussion Regarding Treasury Management.

Summary

Shutter DAO 0x36 has the opportunity to optimize its treasury and drive ecosystem growth by creating a Shutter Ecosystem Fund and then funding it with profit earned by Glo Dollar.

If Shutter DAO 0x36 holds $1M or more USDGLO, it would earn up to $40,000 per year for the newly created Shutter Ecosystem Fund. Furthermore, if other Shutter supporters and community members hold additional USDGLO, then they would earn even more money for the Shutter Ecosystem Fund.

Shutter Ecosystem Fund

Concept

The Shutter Ecosystem Fund will drive the growth and development of high-impact projects within the Shutter ecosystem.

Funding

If Shutter DAO 0x36 swaps $1M USDC into USDGLO, it would hold a total of $1,179,770.21 USDGLO—$179,770.21 from the first swap and $1,000,000 from the second. This balance in the treasury could generate up to $47,000 annually.

Shutter DAO 0x36 would then specify an address for the Shutter Ecosystem Fund - i.e. an address for receiving public goods funding from Glo Dollar. The address could be the Shutter DAO 0x36 treasury address on Ethereum Mainnet or the Shutter DAO 0x36 Safe address on OP Mainnet.

Glo Dollar would then add the Shutter Ecosystem Fund as a public goods project on the Glo Dollar dApp.

Shutter DAO 0x36 would select the Shutter Ecosystem Fund as the recipient of the profit generated by Shutter DAO 0x36’s USDGLO holdings.

Additional Funding

Shutter DAO 0x36 can also mobilize its community and partners like Gnosis and Dappnode to hold Glo Dollar, increasing contributions to ecosystem growth. Transitioning from USDC to Glo Dollar and selecting the Shutter Ecosystem Fund enables people to directly fund the Shutter ecosystem and support it’s mission—all at zero cost to them.

Grants

Launching a program is more accessible than ever—consistent funding remains the primary challenge. By holding Glo Dollar, Shutter DAO 0x36 can create a cost-free funding stream and leverage tools like Gitcoin’s QF, EasyRetroPGF, or CharmVerse to support the Shutter Ecosystem.

Example

Mento’s $1M swap into Glo Dollar highlights how treasury management can directly fund public goods and accelerate ecosystem growth. By adding Celo Public Goods as a funding recipient, Mento is able to unlock up to $40,000 annually. Shutter DAO 0x36 can leverage the same mechanism, using Glo Dollar to boost treasury productivity and drive funding to the Shutter ecosystem.

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Glo Dollar

Introduction

Glo Dollar (USDGLO) is a 100% fiat-backed stablecoin which donates all profits to public goods and charities.

In April 2024, Glo Dollar launched as the stablecoin that funds public goods. We launched our app where Glo Dollar holders to decide which charitable causes and public goods they’d like to support.

Glo Dollar is available on 7 chains: Ethereum, Celo, Polygon, Optimism, Arbitrum, Stellar, and Base.

How It Works

What happens when you buy Glo Dollars:

  1. The fiat backing Glo Dollar is invested in US Treasury debt and cash and earns revenue (similar to USDC). The Glo Foundation receives its part of the revenue on-chain—all transactions are displayed on our website.
  2. We donate 100% of our profits on these investments to public goods and charities—the user decides which. Donations are sent on-chain and reported on our website. They can be directed to the Shutter Ecosystem Fund.
  3. You’re funding public goods in your ecosystem at zero cost.

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Risk Assessment

Glo Dollar is 100% fiat-backed, always redeemable 1:1 for USD and USDC, issued and regulated in the United States, and receives monthly independent attestations.

In April 2024, we received our Bluechip rating, with an initial B grade. This places us in the top 10 fiat-backed stablecoins, and we’re deemed safer than Tether’s USDT, FRAX, and FDUSD, among others. Glo Dollar received the following assessments:

  • Stability: Stable

  • Management: Very low risk

  • Governance: Low risk

Glo Dollar is developed by the Glo Foundation and issued by Brale. Brale is a US-regulated money services business, which is the same regulatory framework under which Circle issues USDC.

Relevant Links

Feedback

Thank you, Shutter DAO 0x36 community, for taking the time to consider this proposal.

We’re available to answer any questions and look forward to your feedback.

3 Likes
2

Thank you for put up this proposal.

Just wondering what underlying assets will GLO be investing using the fund?

Additionally, if the goal is diversified and boost the balance sheet of DAO, I think it would be more reasonable to put back the potential gain back to treasury as well. After it is the gain if returned by risking treasury’s asset

3

Thanks for the question @han!

To break a couple of things down:

  • We aren’t asking to use Shutter DAO 0x36’s funds. We request to swap $1M USDC into $1M USDGLO. The $1M will remain in Shutter DAO 0x36’s treasury and can be used the same way the DAO currently uses USDC.

  • This swap will create up to $40K a year in extra funding for Shutter DAO 0x36 simply by using USDGLO as a stablecoin over USDC.

  • For every $1 of USDGLO on-chain, there is $1 of fiat backing it off-chain. We invest those off-chain dollars in cash and US Treasury Bills. Glo Dollar profits off of the yield generated from the T-Bills. We take those profits and donate them every month.

  • In this case, we would allocate the profit generated from Shutter DAO 0x36s $1M+ USDGLO holding, plus any other Glo Dollar holder who has selected the Shutter Ecosystem Fund, to the Shutter Ecosystem Fund’s wallet every month.

  • These funds would belong to Shutter DAO 0x3 and can be used to help support and grow Shutter DAO 0x36’s ecosystem in whatever way the DAO sees fit.

  • Both the $1M USDGLO and ~$40K/year would be in Shutter DAO 0x36 held and managed treasuries.

Let me know if that answers your questions or if there’s anything else I can help with!

4

In risk of mention what is obvious here given I assume everyone is familiar how swap and on-chain t-bill works, you do need to use $1M USDC from Shutter DAO 0x36’s funds, correct? Unless the $1M USDC is being sourced externally?

The 1m usdc (not the 1m usdg) will be in your guys effective control which you will exchange to off-chain dollars in cash fund and US Treasury Bills but DAO nonetheless hold that risk. Given that, it would be great you disclose how do you invest into cash fund and t-bills given there is various risk still. Insolvency, duration risk, etc.

Per Loring the Shutter Ecosystem Fund does not exist yet. How do you define the funds can be used to support and grow Shutter DAO 0x36’s ecosystem?

It sounds redirect potential return to non-exist entity with no clear definition of control here. We do not even know if it will be governance via Decent/or any on-chain/off-chain mechanism.

We recommend that this proposal remain separate from the establishment of a Shutter Ecosystem Fund and not refer to it until it has been formally voted on.

In its current form, we intend to vote against this proposal