[AIP-12] Cancel ongoing treasury diversification after success of AIP-3

Authors: SmallCapScience

Summary

I, alongside Tritium from BadgerDAO, proposed AIP-3 in mid-July to increase AURA float and liquidity while also building a sustainable runway for the DAO’s operations. The proposal was a success, diversifying the treasury into nearly 1,000,000 USDC while also bootstrapping deeper AURA/ETH liquidity, which has increased by over 50% since the proposal. Now that liquidity conditions improved and the DAO treasury has sufficient runway, Aura should explore cancelling the rest of the diversification. Future diversifications should probably be explored through Bond Protocol, which is launching soon after its ongoing spin-out from Olympus.

Background

AIP-3 allocated 350,000 AURA from the treasury, left over from the airdrop and liquidity allocations, to Cowswap, to be distributed into USDC. This proposal had two separate premises:

  1. Increase AURA float due to large amount of initial AURA locking relative to liquid supply, allowing interested individuals and DAOs from scaling into AURA to use it for liquidity or voting.
  2. Diversify treasury as AURA’s bootstrapping took place during a large market correction, the treasury accumulated less reserve assets than expected, leaving the DAO will little operational runway.

As it stands, there is currently a remaining ~90,000 AURA from the initial 350,000 AURA that has yet to be diversified.

Due to market conditions, the value of ETH in the treasury has increased substantially to ~$600,000. And 851,000 USDC has also been deposited in the treasury as the AURA has been diversified. Runway needs for the DAO and for the Aura Foundation [via AIP-5] are likely satisfied for the time being.

There has been sentiment shared that the limit orders have been holding back AURA. I disagree with that sentiment but now that AIP-3 has served its purpose, it makes sense to cancel these limit orders.

Should the DAO need further diversification in the future, it should explore using Bond Protocol, the spin-off of Olympus Pro from OlympusDAO confirmed in OIP-104 Bonds will allow AURA to be distributed in a more formulaic manner and will allow Aura to deepen its relationship with the Olympus ecosystem.

Terms

  • Cancel pending Aura DAO treasury limit orders diversifying AURA into USDC on CowSwap

Tritium, who proposed AIP-3 with me initially, has already shared his support for this proposal.

Voting

This vote will be a single-choice vote. You may vote “For” or “Against” this proposal, or choose to abstain from the vote. By voting “For” this proposal, you are voting in favor of the terms stated above.

4 Likes

Another excellent proposal. I agree with the sentiment that the CoW swap limit orders have served their purpose and should be cancelled.

It’s been great to see the success of AIP-3. I support this proposal.

This makes sense to me. Thanks for bringing this forward

Support this fully. I think AIP-3 was clearly a success and if runway conditions look solid then it makes sense to reel in the final sales.

I support this proposal

all orders are filled so this vote is invalidated I think?

1 Like

This proposal has been invalidated, as all remaining orders have been filled.

We’ll actually leave the Snapshot up, so that we don’t promote unnecessary censorship.
https://vote.aura.finance/#/proposal/0xb213ed92c5cff0cab1e6e6d9854db2143527fda4f08fa9c1569144760380da3c

2 Likes