#SushiSwap โs decentralized autonomous organization (#DAO ) has unveiled a strategic proposal to boost liquidity through treasury diversification. The proposal aims to optimize SushiSwapโs treasury by shifting from an exclusively SUSHI-held portfolio to a more diversified mix. This move is intended to bolster yield generation, reduce price volatility, and increase liquidity for the native SUSHI token. Sushi DAO plans to introduce stablecoins (#USDT , USDC) to represent 70% of the holdings, while allocating 20% to blue-chip assets like Bitcoin and Ethereum, and 10% to DeFi tokens such as AAVE.
The proposal outlines a step-by-step liquidation process to reduce the treasuryโs exposure to #SUSHI , mitigating volatility and diversifying risk. By expanding the treasury to include high-value assets, SushiSwap anticipates greater stability and liquidity, helping to fortify the protocolโs long-term sustainability. Furthermore, the strategy integrates opportunities for staking, lending, and liquidity provision, creating a multifaceted approach to treasury growth.
This initiative is currently under review by the #SushiDAO community, and if approved, it will move to a governance vote for final implementation. Following the announcement, the price of SUSHI saw an impressive spike of over 20%, reflecting the marketโs positive reception to the diversification plan. The token has experienced an extraordinary rise, with nearly 130% growth in the past month, marking a significant moment for SushiSwap as it embarks on this new phase of development.
The diversified treasury structure promises to provide a robust foundation for SushiSwap's operations in 2024 and beyond, allowing the protocol to capitalize on market opportunities while ensuring long-term resilience and liquidity.
