From an insurance perspective, which I believe is the right framework to look at this through, Rei’s proposal is right. We should be matching our currencies with our exposure identically.
That’s not to say that we can’t have more ETH than dictated by the above, but anything above that should be classified as an investment and we all need to be aware that it brings with it extra risk.
One way to frame this might be to allow us some additional % leeway to invest.
So, if we say we can be 20% overweight one currency.
If 80% of exposure is in DAI, 20% is in ETH, the maximum exposure we could have would be 60% DAI, 40% ETH.
This gets us a good way to where we know we need to be, while giving some leeway for staying long a currency if we desire. As we become more capital efficient (read: less overcapitalized), that 20% would need to come way down. But right now, with our current capital efficiency we can afford to have some excess ETH. Having said that, I still think we should start moving in the right direction, but we don’t have to go all the way to a 1:1 match immediately.