Swap 150,000 USDC into ISC?

Type Operations Direct Action

Author(s) @Richard_ISC

Overview

MetaDAO has approximately $2.2M in USDC in its treasury.

This poses a risk to the DAO given that the US Dollar has been losing value at an increasing rate. The dollar has lost 17.8% of its value since 2020. Due to the debt situation, we don’t expect this to be resolved soon, if ever.

$ISC was built specifically to solve this issue. ISC is an inflation-resistant stable currency built on Solana. It was launched at the Solana Hacker House in HCMC on 2023-03-17 at a price of $1.545. It is now trading at $1.81.

Not pegged to USD, ISC is collateralized by a basket of financial assets. This basket consists of 20% cash, 20% commodities, 20% treasuries, 20% bonds, and 20% equities.

If the proposal passes, MetaDAO will swap 150,000 USDC of its treasury (~6.8%) for ISC.

Details:

MetaDAO would execute a DCA order on jup.ag using the following parameters:

Amount: 150,000 USDC To buy: ISC Every: 1 hours Over: 10 orders Min price: 1.7 Max Price: 1.9

The ISC team would encourage other DAOs to use MetaDAO Futarchy for similar treasury swap proposals. This could easily turn into a win-win-win.

Once the ISC DAO is set up, ISC would commit to use MetaDAO for part of its governance. Example proposals that we have in mind:

• Remove Freeze authority
• Changes in the basket

Potential advantages:

• MetaDAO maintains its treasury value over time
• Promotes other new Solana-native projects
• Showcase a simple Futarchy proposal for other DAOs to follow

Potential pitfalls:

• ISC is still small and early compared to USDC
• ISC could lose value to the USD