I think the debate is a 2 step debate: First: Stable coin or ETH/LSD or Other (like OP or Ocean)
Then the next debate is exactly which one of those types…
There is a real argument for using ETH (or an LSD like stETH or rETH) for our reserve currency. Beyond the well discussed potential issues with DAI and clear desire to diversify our holdings, there is also the change in market conditions. Having a stable coin in our reserve was very powerful for us in the bear market… but the bear market will end, and it might be smart for our organization to invest it’s reserve pool into ETH so we can follow the market. We would effectively be buying ETH at 1/2 the price as we would have bought it in 2021 during the Hatch… That would be a pretty good play for any crypto org.
There is also a good argument for the long term viability of using a stablecoin as well. Avoiding correlation with the crypto markets has it’s own merit too and the tributes would come out as stable tokens which would reduce our overhead for treasury management.
There is less of an argument to be made about using a more volatile, less liquid currency… but I think its fair to leave it open as a possibility for us to consider.
What do you think? If we migrate to Optimism, what should we use for our Reserve in the ABC?
Poll (results as captured: 0 voters)
- Stick with Stables
- Opt for ETH (or LSD)
- Other