Treasury Management Proposal

Proposals
1

Treasury Management Proposal

Summary

This proposal aims to improve the vTreasury token management by creating opportunities to increase the protocol’s revenue through supplying assets to Venus for yield generation.

If approved, 7,724,346 USDC, 443,900 USDT and 132.2637 ETH ($382,241.80) will be supplied to the Venus market. These actions are projected to generate approximately $1,057,435 in annual revenue, based on current market conditions and amounts.

Details

The vTreasury is responsible for holding protocol reserves and liquidation fees, prior to the deployment of the Automatic Income Allocator, distributed based on the tokenomics. Currently, these tokens are not optimized and are held in their underlying denomination.

This proposal aims to manage: BNB, USDC, USDT and ETH, taking advantage of current market supply APYs in the Venus. The recommended actions are the following:

  • Supply 7,724,346 USDC in Venus, currently offering a 13% APY.
  • Supply 443,900 USDT in Venus, currently offering a 12% APY.
  • Supply 132.2637 ETH ($382,241.80) in Venus, currently offering a 1.5% APY.

By implementing these strategies, the estimated annualized revenues from the supplied amounts are $1,057,435. This estimate assumes that market conditions and token amounts remain constant.

It is important to note that if the protocol needs to utilize any of these assets, they can be redeemed from their vToken denomination and transferred in a single transaction, ensuring no additional steps are required for their use.

Conclusion

The idea behind this proposal is to optimize the vTreasury’s assets by investing in Venus yield-generating markets which could add an estimated annual revenue of $1,057,435. This strategy aims to maximize profits while allowing for the quick use of these assets, if needed, for protocol expenses or risk management.

7 Likes
2

Extra cash is always <3. As we can redeem them anytime, there is no point in waiting. Let’s do it ASAP!

3

Wouldn’t it be better to diversify our treasury management investments? I would like to see these reserves generate yields for us but investing the reserves back into Venus seems a bit risky if something were to go wrong. Wouldn’t it be better to spread out the treasury across a few other protocols :thinking:

4

This proposal sounds great to me; being able to generate this extra money from the treasury, and especially having the accessibility to use these tokens for any situation, is fantastic.

5

Name one as secure and as audited as Venus and that can offer as much APY lol. By re-supplying to Venus, we increase available TVL and liquidity to users as well.

6

Having these addition reserve funds available to borrowers is definitely handy and it’s a large chuck of tokens :grin: I don’t think any platform is as secure as Venus has become now so much has gone into audits and risk assessment :stuck_out_tongue_winking_eye:

1 Like
7

This is a good idea for safe and efficient use of assets.

8

Very nice proposal! Simple and secure! It is definitely a must have :+1:

9

This is a good proposal and I support this proposal. This is beneficial to the development of the Venus protocol.

10

The main merit of the protocol is security. It’s strange to invest assets somewhere else other than Venus…

11

It is great to have treasury funds to continue strengthening the Venus protocol

12

What happens if Supply is borrowed to the maximum and we need treasury funds for an important use?

13

It is highly unlikely that Venus would need to use over $7M at once and that there wouldn’t be sufficient liquidity, especially on these markets.

14

Can anyone share potential drawbacks on this?