Treasury Management
TREASURY:
The collected treasury will have 2 main purposes:
1/ Yield Generator
Holding USDC without exploiting them would not be optimal treasury management. That's why we decided to convert them 100% into GLP.
Indeed, as written in Arbitrum Choice, GMX is the major protocol of Arbitrum and a reference point for many DEFI projects. The GLP is currently composed as follows:
Stablecoin part:
USDC 39.35% USDT 1.36% DAI 3;45% FRAX. 2.21% Total: 46,37% Variable part:
ETH 28.84% BTC 22.59% LINK 1.31% UNI 0.85% Total : 53,59%
Excluding unpeg, only 53.59% of the GLP composition is subject to price changes. Given the current market prices we consider that a purchase of GLP offers an interesting risk/reward. Moreover, being an arbitrum based protocol, it would have been unwise not to take exposure to GMX.
2/ Yield management
The yield generated by this investment will be used in its entirety to buyback the token and thus increase the price and counteract the selling pressure, but the $OMM purchased will also be burned which will reduce the total supply and inflationary pressure caused by bonds.
The use of treasury to generate yield therefore helps to maintain the price of the $OMM via buybacks but also burn of tokens to reduce inflationary pressure on bonds.
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