Revisiting the community treasure stablecoin allocation

Dear Index Coop Community Members,

The Index Coop Treasury Pod is hereby announcing a modest re-allocation of the treasury’s assets. The purpose of this allocation is to further diversify and optimise the treasury’s portfolio, while mitigating risk such as the events witnessed in the stablecoin space last week.

Given the current market conditions and the need for a well-balanced investment approach, we propose the following approximate allocations for the treasury:

This is from the current approximate allocation of:

  • 64% USDC
  • 34% DAI
  • (2% Other)

By allocating the majority of our investments into stablecoins like USDC, DAI, and USDT, we ensure a strong and stable foundation for our treasury.

Investing 20% of our treasury into the upcoming launch of MMI, demonstrates the belief in our product and the power of passive income.

Lastly, by allocating 10% of the treasury to LUSD, we further diversify our stablecoin holdings and support an innovative, decentralised stablecoin project from Liquity Protocol.

We will continue to deposit a minority proportion of our stable coin assets across the two most trusted lending protocols Aave and Compound (v2/v2) for additional low risk yield.

Trades will be executed using limit orders through Cowswap to ensure best execution and value.

We believe that this proposed allocation strikes the right balance between long term sustainable capital preservation, risk mitigation, and stablecoin diversity.

Your feedback and support are highly appreciated as we work together to strengthen our treasury and secure the financial future of Index Coop.


The Index Coop Treasury Pod Team