Risk in Treasury: portfolio of stablecoins, tokens

Hey guys,
I feel like a thing is off with the structure of the treasury. I tried to read everything I can, but feel like still doesn’t quit understand it.

The main idea of the treasury is “it can be used to pay for various operational expenses, including developer compensation and community grants.”
From my interpretation because of this it should contain 500,000$ of risk free assets, maybe a portfolio of stable coins or YCURVE, but as I’ve seen from the contract it has

  • 320k$ worth of weth
  • 310k$ worth of yfi
  • 130k$ worth of usdc
  • 97k$ worth of usdt
  • 3k$ worth of dai
    which for me is sorta not balanced.

Please argue with me!
It would minimize systemic risk, if there would be a balanced portfolio of 500k of stablecoins, minimally in the treasury for expenses.
Also for unforeseen events, it would be wise to not distribute all the fees that goes through the treasury, but like 50%-75%-90% percent of it and reinvest the rest in an optimal portfolio of yearn ecosystem members, and or tokens, communities that are trusted by the devs, and the community. For example, sushi, wbtc, weth etc

For example:
100$ yield is generated
5$ is fee, out of which 0.5$ goes to the strategy creator.
4.5$ goes to the treasury
(if the treasury keeps 10%)
4.05$ goes to governance staking as dividend.
0.45$ goes to an optimal portfolio of tokens that are trusted by the community and or yearn collaborators.

Things I’ve read:
Treasury contract:

5% fee on additional yield

  • For community-made strategies, like the new yETH vault, currently 10% of this fee goes to the strategy creator. The other 90% goes to the treasury and is then distributed to governance.
    From: https://docs.yearn.finance/faq

Profits are sent to the Governance contract after the Treasury Vault has accrued a $500,000 reserve; this reserve is used to pay for various operational expenses, including developer compensation and community grants.
From: https://docs.yearn.finance/governance

I believe this is already getting totally reworked. One reason for the existing coins is some of the strategies deposited tokens that weren’t automatically sent to governance rewards as they needed to be converted. Also read YIP’s 51-54 The fee structure is going to be completed different from the 5% model in v1. Also there is a multi-sig 0xfeb4acf3df3cdea7399794d0869ef76a6efaff52 that holds most of the current operational funding.

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Yes, they currently cannot be converted until a new contract is made that can sell them. It’s on the dev’s to-do list, but if anyone wants it done now, they are free to code it up.


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