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SushiSwap DAO proposes strategy to improve liquidity through treasury diversification

  • Sushi DAO proposed a treasury diversification strategy aimed at improving its liquidity.
  • The strategy includes adding stablecoins and blue-chip tokens as part of its treasury.
  • Sushi DAO's proposal will be subject to a governance vote after a review from its community.
SushiSwap DAO proposes strategy to improve liquidity through treasury diversification
Michael EbiekutanMichael EbiekutanFXStreet

The Sushi decentralized autonomous organization (DAO) issued a proposal on Friday that offers a shift from the protocol's initial treasury holding in SUSHI to accommodate other assets.

SUSHI up amid proposal for treasury diversification strategy

Decentralized finance protocol Sushi is set for a change in its treasury system, following a proposal from its DAO.

The proposal introduces a treasury diversification strategy, which aims to improve liquidity and reduce price volatility for the SUSHI token while increasing its yield generation.

The plan involves diversifying Sushi's treasury by shifting from its current 100% SUSHI holdings to a portfolio with a make up of 70% stablecoins, including USDT and USDC, 20% blue-chip tokens, including Bitcoin and Ethereum and 10% DeFi tokens like AAVE. 

The strategy could potentially reduce the impact of volatility on the treasury's value by minimizing its native token holdings through a strategic liquidation process. 

The Sushi team believes holding new tokens will provide fresh liquidity for better operations in the protocol. The plan also includes staking, lending opportunities and liquidity provision for yield generation.

Before implementation, the treasury strategy will require approval by a governance vote after scrutiny from the Sushi community.

SUSHI is up by double-digits following the announcement, rising nearly 20%. The token has seen remarkable growth in the past month, surging over 130%.

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Michael Ebiekutan

With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addition to

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