Context
I’m following up on a point raised by @5pence in the Continued Discussion Regarding Treasury Management. He asked if brainbot would be willing to receive sDAI or USDM (rather than USDC) for the monthly recurring grant. I replied that brainbot is willing to accept a combination of USDC, USDGLO, sDAI / USDS, and USDM. Now I am sharing a specific proposal …
Proposal
brainbot proposes …
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Shutter DAO 0x36 stream 2,054,054 sDAI to brainbot over 10 months (205,405.4 sDAI per tranche * 10 tranches).
- The price of sDAI is currently $1.11, so the current value of 2,054,054 sDAI is 2,280,000 USDC.
- The DSR is currently 6% pa, so we expect the value of the sum of all 10 tranches will be 2,330,000 USDC.
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At the time of each tranche, Shutter DAO 0x36 and brainbot calculate the USDC value of the sDAI disbursed. At the end of 10 months, we make necessary adjustments in order to ensure the value of the sum of all 10 tranches is 2,330,000 USDC.
Benefits
Denominating the grant in USDC but disbursing the grant in sDAI has several benefits:
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The grant is currently denominated in USDC, so this proposal does not change the previously approved grant.
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Maker has rebranded as Sky, and sDAI is being replaced by USDS. This system will help Shutter DAO 0x36 offload its existing sDAI - which it will need to do at some point.
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Shutter DAO 0x36 would continue to benefit from the interest from the DSR (currently 6% pa) while the sDAI is locked up in a stream.
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Shutter DAO 0x36 would be able to consider swapping its existing USDC to an interest bearing asset (USDS or USDM) since the USDC would not be locked up in a stream.
Discussion
Looking forward to hearing from members of Shutter DAO 0x36. Please share your comments, suggestions and questions in this discussion thread.