# sDAI -\> USDC Aave Treasure Management proposal

**URL:** <https://shutternetwork.discourse.group/t/sdai-usdc-aave-treasure-management-proposal/567>\
**Category:** SD 0x36 Proposals\
**Created:** [December 5, 2024, 6:13pm UTC](https://shutternetwork.discourse.group/t/sdai-usdc-aave-treasure-management-proposal/567 "2024-12-05T18:13:12Z")\
**Posts on this page:** 1\
**Page:** 1

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**Author:** ![miohtama](https://dub1.discourse-cdn.com/flex017/user_avatar/shutternetwork.discourse.group/miohtama/32/105_2.png) [@miohtama](https://shutternetwork.discourse.group/u/miohtama)\
**Post date:** [December 5, 2024, 6:13pm UTC](https://shutternetwork.discourse.group/t/sdai-usdc-aave-treasure-management-proposal/567/1 "2024-12-05T18:13:12Z")

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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

 ![image](https://europe1.discourse-cdn.com/flex017/uploads/shutterprotodao/original/1X/caaf865c648901e9e94c9b25456fdb1fbb4faf21.jpeg)