DAO Treasury/Balance Sheet Management

Outline the dilemma that DAOs face today: one the one hand, DAOs need to diversify their treasuries away from their native token concentration; on the other hand, they can’t simply sell their native tokens on the open market without moving the market or cause any negative perception by market participants or its community members. We will discuss s... See more

Anything in a DAO that can be automated should be. Anything that can’t be automated should be funded by the treasury. Treasuries help DAOs fund critical development, attract contributors, and grow their network.

The vision for the Aave treasury is to encourage innovation, accelerate growth, and prudently manage financial assets, while providing relevant and transparent financial reporting content. As long term believers in Aave, the protocol is to remain overweight $AAVE capturing future growth upside, whilst hedging against the risks of adverse market con... See more

The first priority for many large protocol treasuries is to diversify a portion of assets into stablecoins. The stablecoin allocation should at least cover a few years of operating expenses for the treasury.

- Maintain or ramp up spending in the event of a significant market drawdown- Allow governance contributors, grant recipients, and security bounty recipients to be fully or partly paid in stablecoins- Enable yield-generation on Yearn, Aave, and Compound- Provide liquidity on stablecoin-stablecoin pools 

The treasury’s purchasing power should be maintained or grown after accounting for expenses.Diversified asset allocation: The assets in the treasury should be diversified and aligned with the goals of the community.