This proposal executes a swap of 10,000 ETH into USDC, to ensure ENS DAO has enough to cover operating expenses for 18 - 24 months.
Motivation
The DAO currently keeps almost 100% of its spendable treasury in ETH. While ENS generates protocol revenue in ETH, having so much exposure to a single volatile asset places the DAO in a vulnerable position.
This is a proposal to convert 10,000 ETH into USDC through a Cowswap swap.
10,000 ETH is approximately 25% of the total amount of ETH held by the ENS DAO (wallet.ensdao.eth) and register controller (controller.ens.eth) as of January 18, 2023.
It is hoped that this sale will generate in excess of $13m in USDC. The goal is to ensure that the DAO has enough USDC to cover operations for the next 18 - 24 months.
Specification
Call withdraw() on controller.ens.eth (0x283af0b28c62c092c9727f1ee09c02ca627eb7f5)
Call deposit() on WETH9 (0xc02aaa39b223fe8d0a0e5c4f27ead9083c756cc2), sending 10,000 ETH
Call approve(<milkman>, 10000 ETH) on WETH9 (0xc02aaa39b223fe8d0a0e5c4f27ead9083c756cc2)
After discussion with the DXdao community, Caney Fork voted against this proposal for the simple reason that this sale should have been split up in smaller increments over several months aka DCA-ing this sale
This is a better strategy (for securing the runway) than the endowment proposal by Karpatkey, which does too much, too soon, with too high a percentage of the treasury.
In support of this proposal because it reduces the exposure to risk of owning a highly volatile asset like ETH.
Some stablecoins are nice to have around because you'd never worry about their price depreciation.
They may help in planning next-months' financial expenses and taking care of urgent spending requests. In favor of holding ETH for long-term and Stables (USDC or DAI) for medium to short-term. ~1/4 of all DAO funds converted to USDC is a good hedge again the up-and-downs of the crypto markets.
My wish is that it gets well executed and the tokens swap happens without an issue.
