PIP 5 - Accepting stable coins for token requests

This post proposes to reconfigure the token request app to instead of Ether accept multiple stable coins.

Motivation

Current volatility has made it clear that using Ether as a funding mechanism and store of value for the DAO might negatively impact the financial stability of the DAO. Drops in the price of Ether greatly impact the runway. In my opinion PieDAO should prioritise financial stability over benefitting from possible price increases in Ether.

Proposal

Remove Ether as an accepted asset for the token requests and accept DAI, USDC and USDT instead.
We should consider accepting interest bearing assets from Compound and Aave.

How

The voting app in the DAO has the ability to add and remove tokens from the accepted token by the token requests app. (In simple terms we can vote tokens in and out). This needs to be triggered by a DOUGH holder from the CLI interface. Once the votes have passed the new tokens will be accepted.

Let’s discuss before initiating votes.

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I’m fine with accepting stablecoins but not super thrilled about removing ETH.

I opted for removing Ether to make the suggested price for DOUGH easier to calculate.

Due to the asynchronous slow nature of the DAO(which I like), token requests might take some time and having multiple assets with floating DOUGH price might incentivise people to cancel their token request.

I’m fine with that… people withdrawing token requests is part of the process.

We could still accept Ether. I think we then should express the suggested DOUGH request price in USD instead of Ether.

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Is there are signal that suggest accepting stablecoins might be beneficial? Did anyone requested it?

No strong signals. Just the fact that the amount donated is now worth considerably worth less and my personal opinion that financial stability is improved when not being exposed to the price of Ether.

A lot of projects and businesses got in a though spot financially after the 2017 boom because they were very much exposed to Ether.

I personally think the price of Ether will go up in the long run but I don’t think the DAO should speculate on that.

Are there any signals or arguments against?

Ether is the only permission less asset on ethereum.

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Ether is also a quite volatile asset.
I think Ether is the only permission less asset with a large market cap on Ethereum.

If DOUGH gets pegged to the Dollar today it’ll be worth about $0.0525.
Pegging it means DOUGH will become a stablecoin.
What are the ramifications of that?
Need to spin that for awhile :thinking:

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Once DOUGH becomes tradable it will no longer have a peg to the Dollar.

I think the other way we could diversify our the vault’s portfolio is to buy into our own products. HODLing BTC++, CASH++, and ETH would be cool.

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Yes diversification of the DAOs assets would achieve the same goal and might be better.

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Then it’ll be a FrozenCoin. We’ll freeze the DOUGH for awhile :slight_smile:

People can use Uniswap to send any tokens for token requests and we can accept ETH as we did because it has best liquidity. One thing for sure we can do is vote in DAO how much we should keep in ETH and how much in DAI (or other stablecoins ofc)?

At the moment I am more favorable to accept and hold ETH but hey, who knows maybe we can see 90$ ETH price soon if this levels don’t hold up…

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