SushiSwap is taking a bold step to reshape its financial foundation with its “Treasury Diversification Proposal.” Spearheaded by Jared Grey, the platform’s “Head Chef,” the plan aims to create a stable and sustainable treasury by diversifying its holdings and reducing reliance on SUSHI tokens.
The proposal outlines a three-pronged strategy: minimizing volatility, boosting liquidity, and generating passive income. Currently, the Sushi DAO treasury is heavily reliant on its native SUSHI tokens, exposing it to market instability. Grey’s plan involves liquidating the treasury’s SUSHI holdings and reallocating them into a diversified mix of assets.
The new structure proposes a 70% allocation to stablecoins like USDC and USDT to ensure liquidity and mitigate market risks. An additional 20% will be invested in “blue-chip” cryptocurrencies, including Bitcoin and Ethereum, offering both growth potential and diversification. The final 10% will focus on high-potential DeFi tokens, selected after a detailed risk-reward analysis.
To transition smoothly, Sushi DAO plans to adopt a dollar-cost averaging (DCA) approach, ensuring minimal market disruption. The move will be carried out gradually, allowing the platform to adapt and maintain operational stability.
While the proposal seeks to eliminate SUSHI holdings, it remains subject to a governance vote, giving the community a say in its execution. If approved, this plan could mark a transformative shift for SushiSwap, ensuring its financial resilience and ability to support future innovation.
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