SushiSwap (SUSHI) has proposed an ambitious strategy to diversify its treasury holdings, which currently consist of 100% of its native SUSHI tokens.
The “Treasury Diversification Proposal” sets out a roadmap for creating a more balanced and resilient treasury. The key objectives of this initiative are as follows:
- Volatility Reduction: Reducing the reliance on SUSHI assets to stabilize the value of the treasury.
- Increasing Liquidity: Ensuring that the Treasury has sufficient liquid assets for operational and strategic needs.
- Generate Yield: Leverage diversified assets for staking, lending, or liquidity to generate passive income.
Sushi DAO proposes to reallocate treasury assets into three categories by liquidating SUSHI tokens:
- Stablecoins (70%): The majority of the treasury will be converted into stablecoins such as USDC and USDT to provide stability and liquidity.
- Major Cryptocurrencies (20%): A portion will be allocated to established assets like Ethereum (ETH) and Bitcoin (BTC) for diversification and potential growth.
- DeFi Tokens (10%): A discretionary allocation based on comprehensive risk-reward assessments for high-potential decentralized finance (DeFi) tokens like AAVE.
The Treasury's local assets will be gradually liquidated using a dollar-cost averaging (DCA) strategy to minimize market impact.
*This is not investment advice.