[SEP #9] Stablecoin allocation

[Updated according to the comments during Phase 1 on December 11, 2023]

Thanks for the comments provided in Phase 0 (Discussion). I’m submitting this proposal to Phase 1.

Also adding here the Google Doc reflecting one change in wording regarding the alternative solutions:

Feel free to use this doc for any other comments or suggestions.

:phone: The final call on the proposals in Phase 1 (Stablecoin allocation SEP + Strategies and Budget SEP) will be this Wednesday at 5pm UTC. Sign up here.

Title: [SEP #9] Stablecoin allocation

Authors: Andre Geest, Christoph Simmchen

Created: 2023-12-04


This proposal delineates the terms under which SafeDAO shall receive an allocation in stablecoins from the Safe Ecosystem Foundation (“Foundation”) in return for the ARB/OP tokens held for SafeDAO (by the Foundation as legal entity). 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 1.6 million based on the exchange rates available on CoinMarketCap on December 10, 2023. The Foundation shall transfer the USDC to SafeDAO’s designated wallet with the address [0x0B00b3227A5F3df3484f03990A87e02EbaD2F888].
  2. In return, the Optimism (OP) and Arbitrum (ARB) tokens currently allocated to Safe DAO shall be assigned to the Foundation. See the following table for the wallets and specific amounts.
Token Wallet address Amount Approx. valuation in USDC
ARB 0x8fDfaF0D17E949f2bC555a1DaD72141c30D53500 257,540 296,171
OP 0x3EDf6868d7c42863E44072DaEcC16eCA2804Dea1 619,584.01 1,361,034.77
  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: Instead of structuring a token swap with delayed transfer in the future with an unclear reference value, 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, Dmitriy, Nneoma, Charlie, and Varit for their contributions and feedback (list will be updated).


Copyright and related rights waived via CC0.


Thanks, @Andre, and team, for finding a solution to get SafeDAO operational, even before SAFE unlock; this first season under OBRA will be important for setting a benchmark for future (potentially larger) seasons. Let’s get building!

We’ll leave it up for some days for final comments, but this proposal is ready to move to vote from my POV as not much can change.


Since there haven’t been any new comments, I consider this proposal ready to move to vote.


I’d also consider this proposal ready to move on to a vote.



Hello everyone, I apologize in advance for my bad English. Initially, I wanted to ask these questions personally to the safe team, but I decided that many are also interested in this and those who are not, they will probably be interested in why this happened :slight_smile:

  1. Why does Safe have 2 tokens? Initially, the first token

0x5aFE3855358E112B5647B952709E6165e1c1eEEe - the contract was created as a non-transferable token

BUT I found a token that was also created much later - 0x9aE357521153FB07bE6F5792CE7a49752638fbb7 it is transferable, you experimented, added liquidity but the community doesn’t even know about it, moreover .

on the Internet I found this - GitHub - z0r0z/vSafe: Virtual Safe Token This is one of the opinions on what can be done with safe tokens, this post is more than 10 months old BUT NO ONE HAS NEVER remembered this!

Hidden development of a transferable token, complete disregard for the vsafe idea, how does it work?

2.1) If the token remains non-transferable, what was the point for investors to invest $100 million? What will be their benefit, since this is not charity and their only opportunity to return the investment is to make the token transferable?!

2.2) What will be the point of a DAO if the token remains without the possibility of transfer and the voices of several thousand users will not be heard because of a couple of whales
how it was here -

7.8% Manages 92%, this is not fair in any case and understanding this problem will give us a chance to move on

  1. If optimism and arbitration issued tokens for our DAO, then how many safe tokens did we allocate to them in return in their DAO and do they take part in management?

Also at address 0x5aFE3855358E112B5647B952709E6165e1c1eEEe

there are tokens from Thrupenny worth more than 230,000 thousand dollars, what were these tokens for and why are they on the safe token contract?


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As the product lead for the Safe grants program (SGP), I recommend that the “OBRA strategies and budget” is ready to move forward to the voting process by the DAO. Here is my public friendly account.

This has been great work lead by @Andre and it is amazing to see many important builders in the Safe ecosystem be involved in this project.


As a delegate with sufficient voting power, I consider this proposal ready to move to a vote


As a delegate with sufficient voting power, I can confirm that this is ready to move to a vote!


As a delegate with sufficient voting power, I also consider this proposal ready to move to a vote.


We just did minor wording changes to the SEP. The changes can be found as track changes in this Google Doc.

This proposal has enough signaling according to the governance framework and will be included in the voting cycle of this sprint.


Pls reply on my mesage up)

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@Bruce you have voiced some interesting questions.
Perhaps they are worthy of a separate discussion thread?

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I think yes , which me need create category thead ?

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I’m not sure, but it looks like a category Safe Ecosystem → General Discussion

(Maybe it will be moved to a more suitable place later)

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Interesting to see this unfolding. @Andre


@golr, this discussion has moved to another Thread with a lot of detail provided on the questions asked.


Stablecoin allocation [SEP #9] has passed. Thank you everyone who participated in Season 1 / Sprint 2!