Summary
The Euler Foundation has taken proactive steps to optimize its financial resources, ensuring maximum impact on the Euler protocol and ecosystem while maintaining operational stability. The following actions have been initiated:
- Operational Funding: The Foundation has secured $500k USDC* from the Euler Treasury to the Foundation Operations multisig to cover operational expenses for the next 12 months.
- Liquidity and Strategic Reserves: 500,000 EUL* has been retained for liquidity provisioning and other discretionary strategic initiatives. These funds are primarily intended for deployment and subsequent return to the Euler Treasury, rather than direct distribution. This amount will be sent to the Foundation Operations multisig from the Euler Treasury.
- USDC Reallocation: $5m USDC* will be reallocated from Euler v2 on L1 back to the Euler Treasury to enhance flexible capital deployment. Up to $500k USDC* of the total $5m USDC will be available for deployment and/or distribution for strategic initiatives at the Foundation’s discretion.
By securing and repositioning these funds, the Foundation ensures its ability to support protocol growth and ecosystem initiatives efficiently while maintaining operational continuity.
Motivation
The Euler Foundation oversees governance, security, legal, and ecosystem support for the Euler protocol. To execute these responsibilities effectively, stable funding and flexibility in resource deployment are essential.
For 2025, the Foundation’s financial strategy focuses on:
- Ensuring Operational Continuity: Securing operating capital to sustain governance, legal, and infrastructure functions without interruption.
- Strengthening Strategic Reserves: Retaining EUL in the Foundation’s ecosystem initiatives multisig for liquidity provisioning and ecosystem support as needed.
- Optimizing Treasury Management: Reallocating USDC from Euler v2 enables dynamic capital reallocation to serve the protocol’s long-term interests efficiently.
Token Request
1. Operational Funding (USDC Request)
To sustain core operations, the Foundation requests $500k USDC* for 2025 to cover:
- Legal and compliance services
- Professional directors and governance oversight
- Professional service firms (accounting, financial management, etc.)
- Technical infrastructure and security engagements
- Community and ecosystem coordination
Transparency Commitment : The Foundation provides quarterly attestations on spending, ensuring accountability to the Euler DAO.
2. Strategic Initiatives Reserves (EUL Request)
The Foundation requests 500,000 EUL , which will be retained in the Foundation’s ecosystem initiatives multisig as a discretionary reserve.
- These funds are not for direct distribution but may be strategically deployed at the Foundation’s discretion to enhance market depth, facilitate liquidity provisioning, or support initiatives that reinforce Euler’s ecosystem.
- Maintaining a flexible EUL reserve ensures the Foundation can act swiftly and effectively without requiring frequent governance interventions.
3. Reallocation of USDC from Euler v2
To ensure efficient capital deployment, the Foundation seeks to recall up to $5m USDC* from Euler v2 and return it to the Euler Treasury.
- This reallocation is a repositioning of existing assets to allow for greater strategic flexibility.
- A portion of these funds ($500k USDC) will be available for deployment in ways that best serve the Euler ecosystem, including governance, liquidity support, and ecosystem initiatives.
Specification
The Euler Foundation Multisig (0x967B10c27454CC5b1b1Eeb163034ACdE13Fe55e2) will manage:
- $500k USDC for operational expenses.
- 500,000 EUL for discretionary liquidity reserves.
- $5m USDC reallocated from Euler v2 to the Euler Treasury.
- $500k USDC transferred to the Euler Foundation ecosystem initiatives multisig.
Funds are managed under a 3-of-5 multisig, where two signers are Foundation Directors, and the remaining signers are appointed agents or contractors at the discretion of the Directors.
Governance & Execution
- Operational funds will cover routine expenses necessary to sustain Euler’s legal operations and infrastructure.
- Liquidity and strategic reserves will be deployed at the Foundation’s discretion to ensure capital is allocated effectively.
- Quarterly reporting and attestations will provide transparency on fund usage and treasury status.
Voting & Community Feedback
Under Euler’s optimistic governance framework, this proposal does not require formal on- or off-chain voting to be executed. However, community feedback is strongly encouraged to ensure alignment with the broader goals of Euler DAO.
By securing funding and optimizing capital deployment for 2025, the Euler Foundation can continue enhancing governance efficiency, supporting the ecosystem, and ensuring the protocol’s long-term success.
*Figures denoted with an asterisk are best estimates at the time of posting and may be adjusted as needed. Any edits or adjustments to these figures will be noted in the comments of this post with as much notice as possible.