This proposal continues the plan adopted by the community to de-risk the protocol. After TIP-111, the remaining ETH in PCV will be 10k in Tokemak, 20k in Balancer 70/30 FEI pool, and 50k in Lido stETH.
The stETH would be a last-resort asset to liquidate given the current liquidity issues.
Therefore, the Tokemak and Balancer ETH should be made liquid by withdrawing. An additional benefit is it removes 10 million protocol FEI from Balancer which could become circulating, further strengthening the protocol backing.
The withdrawal of the Balancer portion will go through an on-chain vote because the DAO timelock has the correct access control, subject to the discussion below.
The Tokemak portion will follow the Tribal Council process and be completed in two stages: 1. request withdrawal and 2. then withdraw in the next cycle. Stage 1 is currently queued in the Tribal Council Timelock and has a 4 days veto window timelock.