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.

Understand this: yield has to come from somewhere. If you can’t understand in simple terms where yield comes from, what risk you are being compensated for bearing, then the yield is likely not sustainable. It rests on temporary venture capital subsidies or from inflows into the protocol from other investors. As the recent crypto crash reminds us,... See more

- 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