Summary: This SIP introduces a new iteration of our treasury management strategy, focusing on the addition of cash and carry trade. This strategy proposes allocating up to a max of 15% of the treasury to enhance returns through funding rate differentials. Community feedback is sought to inform the implementation of this strategy.
Abstract: Building upon the previous RFF, which successfully diversified the treasury by allocating 10% to ETH and 15% to stETH, this updated RFF introduces the concept of cash and carry trade to further optimize our treasury management. This trade allows for leveraging funding rate differentials to enhance returns, aligning with our goal of maximizing treasury efficiency.
Motivation: The motivation behind this proposed addition is to further enhance the treasury’s resilience and increase potential returns.
Specification: Introducing cash and carry trade to the treasury management strategy, allowing for allocation of up to 15% of the treasury.
Implementation: Sector Finance will conduct thorough research and analysis to determine optimal entry and exit points for cash and carry trades.
Implementation will be carried out in accordance with risk management protocols, ensuring prudence and alignment with overall treasury goals.
Feedback from the community will be carefully considered in finalizing the implementation plan.