I propose
- Move the existing sDAI position to USDC in Aave v3 lending reserves to generate yield
- sDAI yield ~10% APY, Aave USDC yield ~20% APY
Pros
- Aave USDC rates are higher than sDAI rates
- It is easy to move forth and back with around 0.05% USDC<->sDAI swap fees
- Aave USDC reflects bull cryptomarkets more closely, while sDAI earns interest mostly on real-world assets, thus sDAI rates seem to be lower for the duration of crypto bull markets
- Can be done directly from DAO with no third parties needed (no fees, additional smart contract risk, etc.)
- Safest yield in DeFi - Aave has historically shown to be robust
- Transaction can be done directly from Decent
Cons
- Not as diverse as done with a treasury manager
Since the listing of Ethena USD, Aave USD supply yields have been the same as they are pretty much everywhere due to interest rate arbitrage.
This is a complementary proposal for existing treasury management proposals.
Current treasury snapshot
