# Treasury diversification ## Option 1: adding liquidity to SUSHI-ETH pool on Uniswap I know this one will be controversial. **Pros**: * auto-rebalancing portfolio (50% ETH - 50% SUSHI) * we <u>won't</u> directly hurt Sushiswap SUSHI-ETH LPs * swapping fees (<u>0.3%</u> on each swap) go to our treasury * dunking on Uniswap? **Cons**: * xSUSHI holders <u>won't</u> benefit from this liquidity * we will hurt Uniswap SUSHI-ETH LPs * we <u>will</u> indirectly hurt Sushiswap SUSHI-ETH LPs * bad publicity? **A few thoughts** We will indirectly hurt Sushiswap SUSHI-ETH LPs: chances are Uniswap SUSHI-ETH pool gets a better price, hence discouraging swaps on Sushiswap SUSHI-ETH pool. ## Option 2: adding liquidity to SUSHI-ETH pool on Sushiswap **Pros**: * auto-rebalancing portfolio (50% ETH - 50% SUSHI) * xSUSHI holders <u>will</u> benefit from this liquidity * we won't hurt Uniswap SUSHI-ETH LPs **Cons**: * we <u>will</u> directly hurt Sushiswap SUSHI-ETH LPs * swapping fees (<u>0.25%</u> on each swap, 0.05% less than Option 1) go to our treasury **A few thoughts** Unless we decide to stake the remaining SUSHI tokens, which kinda defeats the community-owned AMM narrative, we will lose 0.05% in swapping fees. We will also directly hurt our LPs. ## Option 3: staking in the bar (xSUSHI) **Pros**: * we're not selling any SUSHI token * we won't be exposed to ETH price swings **Cons**: * we will hurt xSUSHI holders * we won't be exposed to ETH price swings **A few thoughts** This kinda defeats Sushiswap's whole purpose. ## Option 4: adding liquidity to Curve **Pros**: * we won't be exposed to ETH price swings * decent APY * it won't hurt SUSHI-ETH LPs * we can stake earned CRV **Cons** * we won't be exposed to ETH price swings * we will have to manually rebalance our treasury * xSUSHI holders won’t benefit from this liquidity **A few thoughts** This might be the safest option. ## Option 5: treasury 100% in SUSHI (YOLO) **Pros**: * balls deep in SUSHI **Cons**: * balls deep in SUSHI **A few thoughts** If number goes up, treasury moons. If number goes down, SUSHI ship might sink and never recover again. We need money for developers, designers, marketing, grants..we might want to be sure we can afford all of this for the coming years. ## Option 6: swap for ETH and hold it **Pros**: * may be the easiest solution **Cons**: * we won't put our ETH to work * we will have to manually rebalance our treasury **A few thoughts** Just holding ETH doesn't provide any yield but after all you could say we only need to diversify, not to earn. ## Option 7: swap for ETH and lend it somewhere **Pros**: * we're putting our ETH to work **Cons**: * we will have to manually rebalance our treasury **A few thoughts** We could lend our ETH on Cream or Aave. ## Final thoughts Should I make some charts with projected earnings for each option? I didn't consider smart contract risk because all the contracts involved in the various options have been audited multiple times and currently hold billions in locked value. --- LPs = Liquidity Providers > Would it make sense to add an Option 8: choose the asset with the lowest correlation? Like SNX?