SDGP-37 Strategic Allocation and Partnership Opportunity with Usual for Stake DAO
Author : chago0x
Summary:
This proposal invites the community to consider whether Stake DAO should allocate up to $500,000 in the initial liquidity seed of the Usual project for a four-month period.
Following Stake DAO’s successful history of participating in liquidity provision for projects like the f(x) Protocol and Reserve Protocol, this initiative aims to manage Stake DAO’s treasury to ensure its continued productivity.
Context:
Website : https://usual.money/
X : https://x.com/usualmoney
Usual is a pioneering stablecoin initiative aimed at fostering a more equitable, transparent, and decentralized financial ecosystem. It challenges the status quo of traditional stablecoins, which have attracted criticism for their centralized control and ethical concerns.
The proposed participation in Usual is not just an ordinary liquidity provision; it’s a four-month bond that rewards Stake DAO with points. These points will later give potential rights to claim USUAL tokens. According to Usual team, the yield for the pre-launch period ranges between 41% (if FDV/TVL = 1) and 430% (if FDV/TVL = 8 which is Ethena’s multiple).
This innovative financial instrument is designed to potentially complement Stake DAO with a profitable return on its treasury investment, thereby supporting Usual’s launch and ensuring its stability.
Additionally, this initiative opens the door to further collaborations between Stake DAO and Usual, particularly in areas like Liquid Lockers and the Votemarket. Such partnerships could enhance Stake DAO’s ecosystem presence, creating more avenues for value creation and engagement in cutting-edge decentralized finance projects.
Proposal Specifications:
- Admin: veSDT holders
- Community Feedback Period: Minimum of 3 days
- Voting Duration: 7 days
- Allocation Details: Up to $500,000 from the treasury for a four-month bond, with potential returns paid out in points redeemable for USUAL tokens.