[Discussion] Stablecoin allocation

We’re presenting the initial draft for a proposal how to fund the inaugural seasons of OBRA with stablecoins.

After listening to the feedback during the governance calls around OBRA and consulting with Safe guardians, we’ve identified a clear way how to allocate funding to projects under OBRA even though the Safe token is not transferable. SafeDAO has transferable tokens in its treasury in the form of Optimism and Arbitrum token. These allocations amount to approximately 1.3 million USD.

This proposal asks for these token allocations to be allocated to the Safe Ecosystem Foundation in return for the respective amount of USDC (details below). We’ve reached out to the Optimism and Arbitrum Foundation, who confirmed that there are no restrictions on the usage of token allocations in this way, provided they benefit the ecosystem.

To facilitate the collaboration and feedback process, we are sharing the draft as a Google Doc where everyone can add comments and suggestions.

Title: [Discussion] Stablecoin allocation

Authors: Andre Geest, Christoph Simmchen (+ any other contributors who would like to be named)

Created: 2023-12-01


This proposal delineates the terms under which SafeDAO shall receive an allocation in stablecoins from the Safe Ecosystem Foundation (“Foundation”) in return for its ARB/OP tokens. This funding mechanism enables SafeDAO to fund initiatives of the Safe Ecosystem under OBRA with stablecoins.

Proposal types

Other SEPs

Proposal details

A. Terms of the proposal:

  1. SafeDAO shall be allocated USDC from the Foundation in an amount equivalent to the value of the Optimism (OP) and Arbitrum (ARB) tokens currently allocated to SafeDAO (stablecoin allocation). This amount corresponds to approximately USD 1.3 million based on the exchange rates available on CoinMarketCap on November 30, 2023. The Foundation shall transfer the USDC to SafeDAO’s designated wallet with the address [0x0B00b3227A5F3df3484f03990A87e02EbaD2F888].
  2. In return, SafeDAO shall transfer the currently allocated Optimism (OP) and Arbitrum (ARB) tokens to the Foundation. See the following table for the wallets and specific amounts.
Token Wallet address Amount Approx. valuation in USDC
ARB 0x8fDfaF0D17E949f2bC555a1DaD72141c30D53500 257540 257482.05
OP 0x3EDf6868d7c42863E44072DaEcC16eCA2804Dea1 619584.01 1,024,830.88
  1. The price of the OP/ARB tokens shall be determined based on the average relevant market price available on CoinMarketCap in the period of 30 days (closing price) before this proposal enters into effect on the date the voting period of this proposal ends on Snapshot as per the governance framework of SafeDAO (“Effective Date”).
  2. The transfer of the respective USDC shall be executed within 4 weeks after the acceptance of this proposal by SafeDAO.
  3. The aggregate value of the proposed exchange of OP/ARB tokens shall be capped at an aggregated value of maximum USD 1.5M on the Effective Date. If the aggregate value is higher than USD 1.5M, the amount of OP/ARB token to be transferred to the Foundation should be reduced proportionally.

B. Purpose:

To foster the Safe Ecosystem, SafeDAO can fund initiatives in accordance with OBRA. For this purpose, SafeDAO shall now be allocated stablecoins.

C. Enter into effect / Effective Date

This proposal enters into effect on the date the voting period of this proposal ends on Snapshot as per the governance framework of SafeDAO and upon acceptance of this proposal.

Purpose and Background
OBRA stipulates the funding of initiatives mainly using stablecoins. By obtaining a stablecoin allocation from the Foundation, SafeDAO can foster the Safe ecosystem according to OBRA and the constitution. This also ensures that SafeDAO has a part of its allocated treasury in stablecoins. The Foundation could use the OP/ARB token for treasury diversification or for future grants / ecosystem programs.

Effects and Impact Analysis


  • Ensures immediate funding for SafeDAO funded initiatives.

  • Allows to foster and grow the Safe ecosystem.

  • Enables SafeDAO to have part of its allocated treasury in stablecoins.

  • Since OP and ARB are not swapped on DEXs but will be executed as a direct change in allocation between SafeDAO and the Foundation, there will be no market impact.


  • SafeDAO loses its opportunity to participate in Optimism and Arbitrum governance. However, this can be mitigated through the Foundation delegating the voting rights to SafeDAO or its members.
  • Missing treasury diversification: By allocating the OP and ARB token to the Foundation the treasury consists of SAFE and stablecoins. However, the OP and ARB token were meant to profit the ecosystem and not for treasury diversification.

Alternative Solutions

  1. Transferring SAFE upon transferability to Foundation instead of OP/ARB token: Challenge is to find the correct reference price. Using the transferable tokens in the SafeDAO treasury provides an immediate and reliable solution.
  2. Relying on Safe Grants Program Wave 2: Similar to wave 1, wave 2 will allocate 500k USD to grantees. However the grants program comes with different limitations to the funding amount and duration in contrast to wider strategies under OBRA, see the terms of SEP #6.


To be implemented the proposal needs to be executed by the Foundation.

Request for administrative and technical support through SEF

  • Who is needed? Finance department and Foundation Council
  • Did you reach out? Yes
  • Is there a roadmap? Yes

Open Questions



Special thanks to Dennison Bertram, Auryn, Nick, Georg Reichhelm, jengajojo, Lindsey, Bernard, Dmitry, Nneoma, Charlie, and Varit for their contributions and feedback (list will be updated).


Copyright and related rights waived via CC0.


Alternative Solutions fit my opinion


  • Directly maintains safedao’s continued participation in the governance of Optimism and Arbitrum, without the need for other channels

  • Given the bull market situation, the price of $arb and $op may increase. Selling tokens may cause Safedao to miss out on potential profit opportunities.

Since safe tokens are currently not transferable, The price of safe tokens can refer to the following:

  • Private placement financing price

According to published information, VC invested $100 million to obtain 8% of safe tokens, and the average private placement price was $1.25,and vc’s latest valuation on safe.

  • Compare with the same track

Given that safe currently belongs to the leading position in the multi-signature track, there is no suitable reference target. We can refer to the earliest L2 circulating token op for reference.

  • Community interest

Conduct token price voting in X/discord or even snapshot to collect the market’s assessed price and sentiment towards safe tokens.

If there have any other references, welcome to comment/feedback.

Hey @Andre - this seems like an excellent intermediate solution and seems to cover the first season of initiatives. While selling tokens of value-aligned networks, such as OP and ARB, is always painful, this seems like the path of least resistance. For example, having to do OTC sales of the non-transferable SAFE seems like a much harder road.

Finally - I don’t think SafeDAO is currently in a position to elect a good delegate for ARB / OP governance - hence reducing the overall utility of the token for SafeDAO in the short term.

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Thanks for the comment!

Just to clarify, the OP/ARB tokens will not be sold, but just allocated to the Safe Ecosystem Foundation. The Foundation’s purpose is to foster the Safe ecosystem so any kind of usage will still be tied to it. Also once SafeDAO develops a process how to get involved in other DAOs the tokens can be delegated and used for governance.

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​​Hi @Boris, thanks for the contribution. Considering the two pro arguments vs. the complications this option would bring, it’s challenging to see it as a better alternative imo. See details below:

Points of consideration regarding the pro arguments:

  • Delegation: Currently, we do not have a process for determining who will be involved and how we will engage in cross-DAO governance, as @LuukDAO alluded to. And in the case we decide that we want to participate in governance earlier, we could consider setting up a delegation to SafeDAO.
  • Price impact: Imo, price arguments regarding OP/ARB should not play a role since these airdrops are intended to benefit the ecosystem, not for speculating on token prices. Additionally, even if such arguments were considered, the Foundation holding OP/ARB could already better finance future ecosystem initiatives, for instance as currently done by the ongoing grants program.

Complications of the option:

  • Non-standard approach to determine price: In my opinion, price discovery should not rely on triangulating different sources in public. Ideally, the price should reflect supply and demand after Token Transferability. I believe we are at a good pace towards achieving this goal with the current level of progress on milestones.
  • Legal risk: Discussing a price in this manner might be premature, and I believe it would pose significant challenges from a regulatory standpoint for anyone leading this initiative publicly.