Summary: Seek authority from the community to whitelist LUSD native staking into Liquity Stability pool and stake up to 100% of our LUSD reserves.
Motivation: The treasury and policy teams at OlympusDAO have placed focus on acquiring both yield-generating governance and stable assets to bolster the risk free value of the treasury.
Depositing assets natively for yield generation into protocols will allow the treasury to grow in both RFV and governance tokens without additional material risk that is already inherent from the holding of those assets.
Risk Evaluation: The stability pool on Liquity is critical for the health of the protocol and the peg of the stablecoin. If the stability pool was to be exploited, the protocol could be impacted potentially to its entire value of each unit of LUSD. With Olympus staking it’s LUSD into the stability pool it helps to reinforce the resilience of the stablecoin and the DAO’s investment - as well as earning yield.
Proposal: We propose to exempt LUSD from the allocation limits presented in the Treasury framework and allow the Treasury team to allocate up to 100% of Olympus LUSD reserves to the Liquity Stability Pool.