BitDAO voting on proposal to earn yield from part of its $2.1 billion treasury

Quick Take

  • The BitDAO community is voting on whether to deposit as much as $8.5 million from its treasury in Ichi to earn a 15% annual yield.
  • BitDAO’s treasury is worth about $2.1 billion and is the second-largest in the crypto space behind Uniswap.

The BitDAO community is currently voting on a governance proposal that would seek to generate a yield from a portion of the organization’s $2.1 billion treasury.

The goal of the proposal is to create yields for holders of BitDAO’s native token, called bit, while also expanding its liquidity on Uniswap.

BitDAO holds the second-largest DAO treasury behind Uniswap. Unlike other DAOs built to administer DeFi projects, BitDAO is an investment DAO. The organization says its goal is to promote crypto adoption on a global scale by issuing grants to projects.

The plan would involve depositing a portion of its $2.1 billion treasury into its token vault on the Ichi platform. Ichi is a DeFi protocol that enables DAOs to mint their own stablecoins, called “oneTokens,” in exchange for their deposited collateral. Each oneToken created in this process is pegged to the U.S. dollar. Projects that mint their own white-label stablecoins from Ichi do so under a specific minting ratio determined by the protocol. Ichi offers these projects an internal rate of return (IRR) that allows projects to earn yields on their deposits.

According to the proposal, BitDAO community members have four deposit options to consider, ranging from 1 million to 20 million bit tokens. This would put the deposit outlay from $425,000 to $8.5 million at the current bit token spot price. The community can also decide to vote no, in which case, the DAO would not go through with the plan.

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