Summary:
This proposal seeks community approval to create and fund an Olympus sUSDS Vault, curated by Gauntlet (https://www.gauntlet.xyz/)
Background:
Currently, the Olympus Treasury holds $54.6m of sUSDS in reserve and it earns the Sky Savings Rate (8.75% vAPR). By placing $30m of this reserve into an Olympus Morpho Vault, we believe these returns can be increased to 13% while taking managed risk through curated lending. The remaining $24.6m will be held in reserve in TRSRY or in the Cooler Clearinghouse for future use.
Proposal:
Working with Gauntlet as our curator, we recommend the creation of an sUSDS Morpho Vault and funding it with $30m sUSDS. At inception, PT-sUSDe-MAY will be the only accepted collateral, while others will be whitelisted and can be added by future governance. This will give us indirect Ethena exposure via Pendle. Gauntlet will manage the rotation of maturities as well as monitoring of the vault, were anything to happen. Rewards would also be liquidated out to sUSDS such that we carry exposure to the reserve asset and minimize exposure to reward tokens (MORPHO, etc.)
For this support, Gauntlet has agreed to take a 5% Performance Fee against the interest earned on the principle. During our diligence, we were quoted ranges from 5-20% so we feel this is competitive.
Net proceeds of this effort will be sent back to the TRSRY Module for YRF consideration in future epochs.
