# Short Term Treasury Diversification **URL:** \ **Category:** Treasury\ **Created:** [15 February 2021 23:31 UTC](https://gov.indexcoop.com/t/short-term-treasury-diversification/867 "2021-02-15T23:31:16Z")\ **Posts on this page:** 1\ **Showing post:** 19
**Author:** ![anon10525910](https://avatars.discourse-cdn.com/v4/letter/a/97f17d/32.png) [@anon10525910](https://gov.indexcoop.com/u/anon10525910)\ **Post date:** [17 February 2021 13:40 UTC](https://gov.indexcoop.com/t/short-term-treasury-diversification/867/19 "2021-02-17T13:40:50Z")
This ā˜ discussion has been very helpful. Iā€™m parroting šŸ¦œ back in a way that makes sense in my brain. With no intent to misconstrue: **Problem** : The Index Coop Treasury is invested only in INDEX. Today, INDEX is a volatile asset. This threatens long-term Coop sustainability. **Solution** : Purchase $200k ETH from the treasury committee wallet using approx. 8000 INDEX tokens **Why** : 1. To prepare for implementation of the smart treasury 2. To reduce the volatility of Index Coop Treasury holdings 3. $200k is 10% of the available market liquidity for INDEX tokens, the maximum we can sensibly trade over a period of a few days. **How** : A mixture of OTC and market selling **Immedite Effect** : After purchase, the Treasury Committee Wallet will hold approx. 14,000 INDEX tokens. **Background** : - Treasury Strategy is currently being guided by [Treasury Questionnaire Pt. 1](https://gov.indexcoop.com/t/treasury-questionnaire/596) and [Pt 2](https://gov.indexcoop.com/t/treasury-questionnaire-pt-2/716) - Forum Post: [Adopt a Smart Treasury](https://gov.indexcoop.com/t/adopt-a-smart-treasury/726) - Google Doc: [Treasury Goals](https://docs.google.com/document/d/1LcP0DkuMdNrPTj4sBWXBD9hJMf7fp5uDh0F_-wIj9uo/edit#) - Discord Discussion: [2/9/21](https://discord.com/channels/762061559744299010/798768395918376980/809178603748589588) --- _[View the full topic](https://gov.indexcoop.com/t/short-term-treasury-diversification/867)._