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DeFi

This Altcoin Offered to Sell All of Its Own Tokens in Its Treasury and Buy Bitcoin and These Altcoins Instead!

NBTCBy NBTC07/12/2024No Comments1 Min Read

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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.

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