With the recent crypto market volatility, there may be renewed interest (at least there is from me) in the ability to remove NMR currency risk and focus on model returns in fiat (i.e. USD).
It is possible today to borrow NMR on the NMR/USDC pair on Kashi lending (see: Kashi NMR Borrowing: Stake on Your Model Without NMR Price Exposure | by Gosuto | Medium ).
However, the current borrow rate is ~70% APY, which is rather high. https://app.sushi.com/kashi/0x7BEe2161AfA1aEe4466E77BED826a41D5A28DB46?pair=0x7BEe2161AfA1aEe4466E77BED826a41D5A28DB46&chainId=1
Previous proposals have asked the COE to add liquidity to that pair (ex: [Proposal] Provide NMR lending liquidity on Kashi )
This proposal is different: Instead of one off proposals to add liquidity, set a “monetary policy”: The COE sets a target borrow APY of 20% or less on the NMR/USDC market.
There would need to be further specification on how COE decides how to tradeoff hitting the borrow APY vs funding other worthwhile projects. At the very least, it could be policy to keep most of the treasury in the contract until needed for funding specific projects, particularly since it will help the COE grow the treasury over time.