The DEX Sushi platform wants to convert the entire amount of tokens in the treasury into stablecoin and other tokens in the Ethereum ecosystem.
Sushi wants to convert the entire treasury into stablecoin and other cryptocurrencies
Jared Grey, the director of the DEX Sushi (formerly SushiSwap), has posted a new proposal on the Sushi DAO community forum, calling for a vote to implement a new asset allocation strategy.
Specifically, Mr. Grey wants the project to reallocate its treasury from 100% holding of SUSHI tokens to other assets, in the following proportions:
- 70% in stablecoins such as USDT and USDC;
- 20% in major cryptocurrencies such as BTC and ETH;
- 10% in DeFi tokens such as AAVE.
In addition, SushiSwap will also pursue other profitable strategies from the new treasury assets, such as staking, providing liquidity, and lending.
Mr. Jared Grey's proposal to convert 100% of the treasury from SUSHI to other cryptocurrencies
Mr. Jared Grey explained that the purpose of reallocating the treasury assets is to maintain long-term development for SushiSwap, reduce the impact of holding too many SUSHI tokens, improve the treasury's liquidity, and explore new profitable strategies.
To mitigate risks, Sushi will closely monitor the market situation to make adjustments to the treasury, maintain a certain amount of stablecoin as an emergency fund for major market corrections, and regularly update the asset balance to ensure transparency of operations.
Mr. Grey stated that if the proposal is approved, Sushi will gradually and scientifically liquidate the held tokens to minimize the impact on the market.
According to data from Etherscan, the SushiSwap treasury currently holds 15.6 million SUSHI, worth nearly $27.6 million - equivalent to 8.1% of SUSHI's current market capitalization.
Sushi's treasury wallet address. Source: Etherscan (07/12/2024)
The SUSHI price is currently $1.77, up more than 16% in the past 24 hours, reaching the highest level since April, amid the surge of Ethereum-based tokens after ETH first conquered the $4,000 milestone on the evening of 06/12.
SUSHI token price movement in the last 7 days. Screenshot from CoinGecko at 10:00 AM on 07/12/2024
In April, the team behind Sushi caused a major controversy when they announced a proposal to transfer the treasury to the management of Sushi Labs, but it was blocked by the community.
Compiled by Coin68
