Sushi DAO proposed a financial diversification strategy aimed at improving liquidity. This strategy includes adding stablecoins and blue chip tokens as part of the treasury. Sushi DAO proposals will be subject to a governance vote following community review.
The SUSHI Decentralized Autonomous Organization (DAO) on Friday announced a proposal to transfer the protocol's original state holdings to SUSHI and accommodate other assets.
SUSHI increases with financial diversification strategy proposal
Decentralized finance protocol Sushi plans to change its financial system following a proposal from the DAO.
The proposal introduces a financial diversification strategy aimed at improving the liquidity of SUSHI tokens and reducing price volatility while increasing yields.
This plan includes transitioning from the current 100% SUSHI holdings to a portfolio consisting of 70% stable coins including USDT and USDC, 20% blue chip tokens including Bitcoin and Ethereum, and 10% DeFi tokens such as AAVE. This includes diversifying Sushi's finances. .
This strategy could potentially reduce the impact of volatility on Treasury value by minimizing native token holdings through a strategic liquidation process.
The Sushi team believes that holding new tokens will provide new liquidity to improve operations on the protocol. The plan also includes providing liquidity for staking, lending opportunities, and yield generation.
The financial strategy must be vetted by the sushi community and approved by a governance vote before implementation.
SUSHI rose by double digits following the announcement, rising nearly 20%. The token has seen impressive growth over the past month, surging more than 130%.
