0xFelix
This sounds reasonable. Let's wait to see how the ETH bonds go. I am not opposed to LUSD. I don't think the collateral model is very useful to us but the de-centralisation certainly is.
On another note, I do not think Terra's peg loss in May21 is reflective of any unique UST risk to the RFV. Here is why.
UST handled its peg in the May21 crash much better than Dai held its peg during it's 2020 crash. The UST peg self-restored within a few days of the main crash with zero intervention from the DAO. From a Treasury standpoint this would have been unnoticeable. Post-hoc analysis of the underlying cause of the peg loss show it was was not a design failure, but the result of an on-chain policy parameter that had been set too tightly and was subsequently adjusted via a community vote.
On the other hand, stabalising Dai (which is collateralised) required re-collateralisation and took substantial intervention from MakerDAO. Had this not occurred it is not clear that Dai would have survived. I think from a performance standpoint UST is actually a safer option that Dai, given its ability to recover its peg via continuous arb action without any DAO intervention.
I do not know what unique risks wrapped-UST might introduce, so using an ERC-20 native option first is not a bad idea.
Several OHMies have mentioned LUSD, but as far as I am aware, LUSD is 110% collateralised by ETH. I think we already have enough ETH exposure, since every asset in the treasury is either ETH itself or substantially collateralised by ETH. However, LUSD is decentralised so I would still fully support this as a Treasury addition.
As a compromise and to test UST, in a few weeks we could perhaps make a small Dai or Frax deposit to Orion Money (e.g. $33,000) as a test run. The Dai or Frax is swapped 'under-the-hood' for UST and added to Anchor protocol. With this approach we'd get a small, indirect cross-chain exposure to diversify away from ETH, and also earn 13.5%+ on our Dai or Frax allocation, a far better return than what we're earning with our Aave or Convex allocations. Everything on Orion Money is ERC-20 based.