Summary: Bond capacities become skewed as progress is made and priorities shift. We should adjust our inflow targets to better match where we stand today.
Background: We currently hold approximately $210m in OHM-DAI SLP, $30m in OHM-FRAX LP, $2m in OHM-LUSD SLP, $49m DAI, $21m LUSD, $10m FRAX, $5.6m ETH, plus smaller amounts of other coins.
Abstract: With ownership of over $150m DAI, it should be safe to suggest that we cut inflows. That is >2.5% of their supply and almost half of our treasury. Same goes for FRAX; we still control >6% supply and have been only tepidly adding for the past several months.
As we scale, "RFV" and stablecoin holdings should grow less significant. We now have a massive stockpile of stables that we can pull from when needed, and which provide us with de-correlated behavior in pools. It makes sense that we would shift away from that particular asset type at this crossroads.
Proposal: Deprecate DAI, OHM-DAI, FRAX, and OHM-FRAX bonds. Shift all capacity toward LUSD, OHM-LUSD, and ETH. Once OHM-LUSD is >$20m, start building an OHM-ETH pool. Raise maximum acceptable treasury ETH exposure to 25% market value of the treasury (actual exposure <=25%).
Bond control variables would be as follows:
OHM-LUSD - 101 (High capacity)
LUSD - 300 (Moderate capacity)
ETH - 450 (Moderate capacity)
Motivation: Allocate resources in a safe and productive manner.
Drawbacks: Decreased future DAI/FRAX holdings. Increased ETH exposure.