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Convert Treasury to stETH #57

Open chasearena opened 2 years ago

chasearena commented 2 years ago

There are currently 117.707 ETH and 6.3738 WETH in treasury. Converting this to stETH would enable treasury to earn staking rewards.

Specifically, I'd propose we convert 6.3738 WETH and 115 ETH to stETH.

stETH is Lido's liquid Ethereum staking product. More information about the product, rewards, etc can be found here:

https://lido.fi/ethereum

There are risks associated with staking with Lido and those are outlined here:

https://help.lido.fi/en/articles/5230603-what-are-the-risks-of-staking-with-lido

In closing, the current rewards are mid single digits, but with the merge hopefully happening in a few months this is expected to rise significantly.

WalshyNFG commented 2 years ago

Hey - Walshy from Lido here. I love to see this, and we'd like to offer any assistance/answers if they're needed by the community. If you have any questions please feel to reach out here or on our discord!

chasearena commented 2 years ago

Is anyone in favor of a more leveraged approach like this: https://twitter.com/_nikolajankovic/status/1500838106915917829

I am personally more comfortable with just vanilla stETH, but if there are strong feelings on the other side happy to discuss here :)

amplice commented 2 years ago

i would do element fixed rate to punt an airdrop for the treasury, or do yearn rather than vanilla steth

kkkrackpot commented 2 years ago

Overall, I like the idea, if stETH is liquid enough. Imo, we shouldn't invest WETH -- it will not cover tx fees, anyway. What's the current APR at Lido?