[ARFC] Treasury Management - Add to rETH Holding

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TokenLogic's proposal to convert part of the DAO's Ethereum Treasury assets into rETH has received mixed reactions from the community. While some members support the move for its potential to optimize risk-adjusted yield and promote decentralization, others question the choice of rETH over stETH/wstETH and call for more transparency in the proposal's calculations.

What is this about?

The discussion revolves around a proposal by TokenLogic to convert a portion of the DAO's Ethereum Treasury assets (wETH, awETH, and aEthWETH) into rETH, leaving a balance of 100 aEthWETH for ongoing DAO expenses1. The motivation behind this proposal is the higher yield offered by rETH compared to the current assets. However, the choice of rETH over stETH/wstETH has been questioned by WintermuteGovernance and 0xkeyrock.eth, who believe the latter could maximize the yield from the DAO's ETH holdings 3,5.

How is the community reacting?

The community's reaction is mixed. Jengajojo and MarcZeller (representing ACI) support the proposal, emphasizing the importance of decentralization and diversity of LSTs 4,6. On the other hand, 0xkeyrock.eth and Michigan_Blockchain have raised concerns about the proposal, with the former suggesting that treasury management should prioritize optimized return 7,10. Kene_StableLab and Kentphilly also support the addition of rETH to the DAO's holdings, despite acknowledging that stETH may yield better results 8,9.

Why this is positive?

The proposal is seen as a positive move by some members as it optimizes risk-adjusted yield and promotes the decentralization of staked ETH. It also emphasizes the importance of diversifying the DAO's holdings, which is seen as a strategic move for the organization's long-term stability.

Why this is negative?

However, some members have expressed concerns about the proposal. They question the choice of rETH over stETH/wstETH and believe that treasury management should prioritize optimized return. There are also questions about the calculations regarding the additional yield generated by the ARFC implementation, indicating a need for more transparency and clarity in the proposal.

Posted 2 months ago

Last reply a month ago

Summary updated a month ago

Last updated 03/12 08:00