Authors: Proph3t and Kollan
Category: Treasury Management Direct Action
Allocation: Up to $2,000,000 USDC

Overview

If passed, this proposal would:

• Scale up to 2,000,000 USDC held by the MetaDAO treasury into USDv through staged mint transactions.
• Route rewards to MetaDAO’s treasury.

Motivation

MetaDAO holds a meaningful portion of its treasury in USDC. These balances currently generate no return.

Solomon is one of our core projects and they are currently in their deployment / GTM phase.

We’ve analyzed the risk associated with Solomon’s smart contracts, including their OpSec, and we think that the upside of supporting the project and generating yield is greater than this risk for $2M of our capital.

We expect the position to generate between 2.5% and 5% annually, although the rate will vary. On a $2,000,000 position, this would represent approximately $50,000 to $100,000 per year that could be directed toward MetaDAO’s operating expenses.

Risk

USDv introduces a different risk profile than holding USDC directly, including exposure to its reserve portfolio, program infrastructure, and redemption process. USDv does have risk, including risk of total loss, we believe that the risk / reward is worth it based on the below factors.

The USDv program has been double-audited by Accretion, has formal verification (which is itself partially audited), will have a timelock on program upgrade authority by the time we deploy, and includes strict controls around minting, redemption, administrative authorities, and program operations.

MetaDAO will also receive direct mint and redemption authorization, allowing it to enter and exit through the primary system rather than relying solely on secondary-market liquidity.

The position will be capped at $2,000,000 unless a future proposal authorizes an increase. Deployment will occur incrementally, allowing MetaDAO to validate the minting, custody, reward-routing, and redemption infrastructure before the full allocation is deployed.

Logistics

High-level terms:

• Allocation: Up to 2,000,000 USDC.
• Execution: MetaDAO will scale into the position through a series of mint transactions. The pace and size of each transaction will be determined by security and operational considerations, and the full conversion may take several weeks.
• Custody: The resulting USDv will be held in MetaDAO’s treasury wallet.
• Rewards: Rewards attributable to the position will be routed to MetaDAO’s treasury wallet.
• Mint and redemption: MetaDAO LLC will complete Solomon’s institutional onboarding process and receive authorization to mint and redeem USDv.
• Expected rewards: Approximately 2.5% to 5% annually, subject to change.
• Position limit: The principal amount may not exceed $2,000,000 without a subsequent governance proposal.
• Additional wallets: MetaDAO LLC may independently use USDv in company-controlled wallets where it currently holds USDC. These balances will remain separate from the DAO allocation authorized by this proposal.

Onchain Action

Upon passage, this proposal will authorize the transfer of up to 2,000,000 USDC from the MetaDAO treasury through the approved USDv mint process.

The position will be established incrementally rather than through a single transaction. MetaDAO LLC will determine the timing and size of each mint based on security, operational readiness, and the successful completion of prior transactions. The full allocation may therefore take several weeks to deploy.

The MetaDAO director is authorized to execute the agreements, onboarding documents, wallet verifications, mint transactions, redemption transactions, and other operational actions reasonably necessary to establish and manage the position.

No further governance action will be required unless MetaDAO seeks to increase the position beyond $2,000,000 or materially change the authorized custody structure.