Treasury Consolidation - May 23

Treasury & Finance
1

Background

Aragon Association is currently holding multiple legacy financial positions in many tokens and protocols, including:

  • 42,357.28 GTC tokens

  • 10.6603 BNB tokens

  • 542.8556 KNC tokens

  • $2,023 in a Yearn vault

  • 3,276.23 ZEC tokens

  • 1,109,828.49 MANA tokens

  • 137,546.25 UNI tokens

  • 46,296.30 ENS tokens

  • 3,836,168.54 GRT tokens

  • $80k worth of BAL tokens

  • 34.3m USDC

  • 20m DAI

  • $2.6m in securities

  • $8m in BTC

There is broad consensus that a consolidation of assets is needed to facilitate next steps. In order to move forward, the AA Committee has voted and approved this week the following resolution.

Approved Resolution

  1. Sell 11.1m DAI for USDC, in order to maintain a temporary 45M USDC position for potential legal and tax liabilities, OPEX for AA and ASF, and to continue funding the development of Aragon Project and its core infra. For the short term, this amount should be deducted from the total transferable assets to Aragon DAO.
  2. Sell all securities currently held (approx $2.6m), where:
    • 600k USD will be converted into ETH
    • 2M USD will be split equally between CHF/EUR/USD, to cover AA fiat expenses
  3. Sell all the following positions for ETH
    • 42,357.28 GTC tokens (completed)
    • 10.6603 BNB tokens - pending
    • 542.8556 KNC tokens - pending
    • $2,023 in a Yearn vault - pending
    • 3,276.23 ZEC tokens - pending
    • 137,546.25 UNI tokens (completed)
    • 46,296.30 ENS tokens (completed)
    • 3,836,168.54 GRT tokens (completed)
    • 9,900 BAL tokens - (executing in five months, when veBAL tokens are unlocked)
    • 8.9M DAI (completed)
    • 305.4 BTC - pending
  4. Convert the ETH from point 3 into stETH, using Lido

The operations may either be done directly on a DEX or OTC, over the course of the next few weeks, to be executed by AA.

EDIT 15.06.23:
The following adjustments have been made to the consolidation operations:

  • Increased the amount of DAI to be sold to USDC to 11.1m.
  • 1,109,828.49 MANA tokens are kept
  • 200k GRT are be kept
  • Full liquidation of Syz assets will happen in August.
  • Some operations are being executed from the new AA Budget Vault deployment on aragonOSx (aa.dao.eth), which will be used for operational purposes.
2 Likes
2

Interest-Bearing Stablecoin like eUSD from Lybra Finance might be good choice beside USDC & ETH.
eUSD is paying ~8%. 190% backed by stETH.
Just my 2 cent.
Link: Lybra | Unleash the Power of LSD, Stable Interest Bearing Stablecoin

3

With the current turbulent state of the market - have we started this process yet?

1 Like
4

While this is a great first step, the market is in a very peculiar spot with the SEC crackdowns. Shouldn’t this be done with more urgency instead of a timeline of a few weeks, especially considering that most of the tokens are highly liquid?

5

Hi @0xGinobili ,

Just edited the original post with an update on the status of the treasury consolidation.

Cheers!

6

Would be great to see breakdown of expenses.

7

Here’s a breakdown of current AA’s expenses (rough numbers):

  • Software providers: $20K/mo
  • Service providers: $38K/mo
  • Personnel expenses: $32.5K/mo

The $2M to keep in fiat should cover the next 12-16 months + safety buffer.

8

UPDATE 22.06.23

As of today, all trades have been executed but the following, which remain pending:

  • 10.6603 BNB tokens
  • 542.8556 KNC tokens
  • $2,023 in a Yearn vault
  • 3,276.23 ZEC tokens
  • 9,900 BAL tokens - (executing in five months, when veBAL tokens are unlocked)
  • Securities (ongoing)
2 Likes
9

Can you break all of this down further?

What software costs 20k a month? Same questions for service providers and personnel expenses!

Would like a more thorough breakdown here - 2mm seems a little bit high for these 3 things… as well as the safety buffer.

cheers

10

i agree that a breakdown would be helpful and appreciated. It will help streamline things and keep things transparent and accountable. However it can be reasonable costs depending on what software they may be using (one thing could be reducing headcount using software, for example notion seats can get very expensive with massive teams).

As long as things are transparent i think 2M is reasonable to set aside, broken into payments over time rather than paying it all out upfront.