Gnosis DAO Treasury - Uniswap V3 LP Recommended Actions

# Gnosis DAO Treasury - Uniswap V3 LP Recommended Actions **Date:** November 2025 **Prepared by:** Dave **Reference:** [Position Spreadsheet](https://docs.google.com/spreadsheets/d/1eMCWjRCuqGXvsM1DZG2vzpv6SRAxcPksGkHm7lmqA9Q/edit?usp=sharing) --- ## Executive Summary Following review of the DAO's Uniswap V3 LP positions on Gnosis Chain, several positions require immediate action due to being out of range or structurally misaligned with the underlying asset dynamics. Total value to be adjusted: **~$10M**. --- ## 1. WSTETH/SDAI Positions **Total Value:** ~$7M across 6 positions **Status:** All out of range ![image](https://hackmd.io/_uploads/rk2h2RdW-l.png) ### Recommendation **Close all existing positions.** Consolidate into a single position with range based on 3-year ETH volatility centered around current price. | Action | Positions Affected | Value | |--------|-------------------|-------| | Close | 1297, 4437, 4429, 1300, 2931, 4212 | ~$7M | | Create | New single position | TBD | **New Position Parameters:** - Pair: WSTETH/SDAI - Fee tier: 0.05% - Range: Calculate based on 3-year realized volatility of ETH (±1-2 standard deviations from current price) - Size: Reduced from $7M — recommend $3-4M max given limited trading volume on this pair --- ## 2. USDC.E/sDAI Position (ID: 2975) **Value:** $2.06M **Status:** 80%+ through range, will exit within months **Issue:** sDAI continuously appreciates vs USDC due to DSR yield. Position will fully exit range as sDAI accrues ~6% annually. ### Recommendation **Adjust range to start from current sDAI:xDAI rate and extend 6M of yield.** **Reference Contract:** - sDAI on Gnosis: `0xaf204776c7245bF4147c2612BF6e5972Ee483701` - Read function: `convertToAssets(1e18)` to get current sDAI:xDAI rate - [Contract on Gnosisscan](https://gnosisscan.io/address/0xaf204776c7245bF4147c2612BF6e5972Ee483701#readContract#F7) **New Range Calculation:** ``` Lower bound: Current sDAI:xDAI rate (read from contract) Upper bound: Current rate × 1.03 (6M of xDSR) ``` **Alternative Recommendation:** Consider Curve StableSwap or Balancer V3. With `convertToAssets(1e18)` as oracle. --- ## 3. WSTETH/GNO Positions ### Position 1640 — $433K **Status:** Out of range (below lower bound) **Issue:** Large GNO sell order from the DAO - why? **Recommendation:** Close position. ### Position 4332 — $1.32M **Status:** Out of range **Issue:** Position is out of range, could be adjusted to be one-sided GNO buy wall in range. **Recommendation:** Leave position or adjust to current price. ### Position 4033 — $1.17M **Status:** In range, well-positioned **Recommendation:** No action required. --- ## 4. WETH/WSTETH Position (ID: 3701) **Value:** $1.97M **Status:** In range but structurally problematic **Issue:** wstETH appreciates vs WETH at ~3-4% APY (Lido staking yield). This position systematically loses value to arbitrageurs who capture the yield differential. ### Recommendation **Adjust range to start from current wstETH:stETH rate and extend 6M of yield.** **Reference Contract:** - wstETH on Ethereum: `0x7f39c581f595b53c5cb19bd0b3f8da6c935e2ca0` - Read function: `stEthPerToken()` returns current wstETH:stETH rate - [Contract on Etherscan](https://etherscan.io/address/0x7f39c581f595b53c5cb19bd0b3f8da6c935e2ca0#readContract) **New Range Calculation:** ``` Lower bound: Current stEthPerToken (currently ~1.22) Upper bound: 1.255 (approximately 6M of ~3% staking yield) ``` **Alternative Recommendation:** Consider Curve StableSwap or Balancer V3. With `stEthPerToken()` as oracle. --- ## 5. Positions Requiring No Action The following positions are well-structured and in range: | ID | Pair | Value | Status | |----|------|-------|--------| | 4756 | WSTETH/WBTC | $1.1M | ✓ In range | | 4755 | WSTETH/WBTC | $1.1M | ✓ In range | | 4033 | WSTETH/GNO | $1.17M | ✓ In range | | 3700 | USDC.E/EURE | $1.16M | ✓ In range | | 4390 | USDC.E/GHO | $1M | ✓ In range | | 2974 | USDC.E/WxDAI | $955K | ✓ In range | | 4376 | USDC.E/BRLA | $226K | ✓ In range | | 4624 | EURE/ZCHF | $196K | ✓ In range | | 4377 | sDAI/EURE | $106K | ✓ In range | | 4542 | USDC.E/USDC.e | $100K | ✓ In range | | 4749 | BRZ/USDC.E | $44K | ✓ In range | | 4726 | USDC.E/BRLA | $40K | ✓ In range | | 4748 | BRZ/BRLA | $10K | ✓ In range | --- ## Summary of Actions | Position(s) | Action | Value | |------------|--------|-------| | 1640 (WSTETH/GNO) | Close — out of range | $433K | | All WSTETH/SDAI | Close all, create consolidated position | $7M | | 2975 (USDC/sDAI) | Adjust range per sDAI rate + 6M yield | $2.06M | | 3701 (WETH/WSTETH) | Adjust range per stEthPerToken + 6M yield | $1.97M | --- ## Appendix: ### Fee Tier Note Several positions are currently deployed at fee tiers that may be too low given the underlying asset dynamics. Low fees on predictable-drift pairs (yield-bearing tokens like wstETH, sDAI) attract toxic orderflow. **Recommendation**: Keep existing positions for now. Fee tier optimization to be addressed in future. ### Contract References ### sDAI on Gnosis Chain - Address: `0xaf204776c7245bF4147c2612BF6e5972Ee483701` - Function: `convertToAssets(uint256 shares)` — pass `1000000000000000000` (1e18) to get current sDAI:xDAI rate - [Gnosisscan Link](https://gnosisscan.io/address/0xaf204776c7245bF4147c2612BF6e5972Ee483701#readContract) ### wstETH on Ethereum - Address: `0x7f39c581f595b53c5cb19bd0b3f8da6c935e2ca0` - Function: `stEthPerToken()` — returns current wstETH:stETH rate (e.g., 1.22e18) - [Etherscan Link](https://etherscan.io/address/0x7f39c581f595b53c5cb19bd0b3f8da6c935e2ca0#readContract)