This is an interesting approach and was also something I was going to suggest. Essentially structure a reserve similar to what Celo is doing but then put that capital to work like OHM is doing and be a liquidity provider on DEXs to make the treasury a productive asset and provide sticky, lower-cost liquidity to Terra ecosystem projects that are approved by governance votes.
ie. make a part of the Terra protocol an AMM for new projects to bootstrap their networks.
Should be able to get the best of both worlds:
- Less volatility because there are more diverse assets;
- Turning the treasury into a productive asset vs. just a static pool to help further grow the reserve ratio
EDIT: Formatting