Summary

This proposal aims to ensure the sustainability of the Unlock Protocol DAO treasury by increasing available USDC liquidity to cover current and future operational expenses.

Context

The DAO treasury is currently running low on USDC, which creates a risk for fulfilling approved and upcoming payments, such as Proposal #32333504691908265821196935068686159046240743627403944131571934699080378126681. At the same time, the DAO holds approximately 10.17 ETH on Base. To prevent liquidity issues and ensure smooth operations, it is necessary to rebalance part of the treasury.

Proposal

Swap 3 ETH from the treasury into USDC. For execution flexibility, this proposal transfers the 3 ETH to the DAO multisig on Base, which will perform the swap on a DEX.

Rationale

• Maintain sufficient USDC liquidity for approved and future payments.
• Reduce short-term operational risk.
• Preserve the majority of ETH holdings for long-term exposure.

Financial Impact (Estimated)

Using ETH price ≈ $2,132.39 USD:

• 3 ETH ≈ 6,397.17 USDC
• Remaining ETH in treasury: ~7.17 ETH

(Note: Final USDC amount will depend on market price and slippage at execution time.)

Execution Plan

1. Transfer 3 ETH from the Timelock to the DAO multisig on Base.
2. Perform the swap on Base using a trusted DEX (e.g., Uniswap).
3. Ensure minimal slippage and optimal execution.
4. Transfer the acquired USDC to the DAO treasury.

Conclusion

This proposal provides a simple and low-risk strategy to ensure the DAO maintains sufficient liquidity while preserving most of its ETH exposure. It is a proactive step to support ongoing operations and approved governance decisions.