Sushi Wants to Convert All Treasury Funds to Stablecoins and Other Cryptocurrencies

The Sushi DEX wants to convert all tokens in the treasury fund to stablecoins and other tokens in the Ethereum ecosystem.

Jared Grey, director of the Sushi DEX (formerly known as SushiSwap), has posted a new proposal on the Sushi DAO community forum, calling for a vote to adopt a new asset allocation strategy.

Specifically, Mr. Grey wants the project to reallocate its treasury fund from 100% holding SUSHI tokens to other assets, in the following proportions:

- 70% are stablecoins such as USDT and USDC;

- 20% are major cryptocurrencies such as BTC and ETH;

- 10% are DeFi tokens such as AAVE.

In addition, SushiSwap will also carry out other profit-making strategies from the new treasury fund assets such as participating in staking, providing liquidity and lending money.

Jared Grey's Proposal to Convert 100% of Treasury Funds from SUSHI to Other Cryptocurrencies

Mr. Jared Grey explained that the move to reallocate the treasury fund's assets is to maintain the long-term development of SushiSwap, reduce the impact of holding too many SUSHI tokens, improve liquidity for the fund, and explore new profit-making strategies.

To prevent risks, Sushi will regularly monitor the market situation to make adjustments to the treasury fund, maintain a certain amount of stablecoins as an emergency fund for major market adjustments, and regularly update the asset balance for operational transparency.

Mr. Grey affirmed that if the proposal is passed, Sushi will gradually liquidate the tokens it is holding in a scientific manner to minimize the impact on the market.

According to data from Etherscan, SushiSwap's treasury fund holds 15.6 million SUSHI, worth nearly $27.6 million - equivalent to 8.1% of SUSHI's current market capitalization.

SUSHI is currently trading at $1.77, up more than 16% in the past 24 hours to its highest level since April, following a surge in Ethereum tokens after ETH's price crossed the $4,000 mark for the first time in nine months on the evening of December 6.

In April, the team behind Sushi caused a stir when it announced a proposal to move the treasury fund under the management of Sushi Labs, but was blocked by the community.