The Aave Treasury Management Vision

Risk management To fund future operations, DAOs must manage their currency exposure. Some DeFi and NFT DAOs have treasuries worth hundreds of millions or billions. In addition to funding development and audits, these assets provide insurance if underlying protocols fail and are used for user acquisition and growth. To achieve these goals, DAOs mana... See more

Use governance tools To enable DAO members to understand what it means to vote to reduce collateral/margin requirements or increase interest rates, several quantitative tools have emerged to visualize DAO risk (and possibly their protocols). Aave and Compound, for instance, hold billions of dollars in assets to backstop lending protocols. DAO treas... See more

Diversifying the treasury also allows us to invest in new projects, onboard new contributors into our in-house guilds and hire full time staff. Furthermore, de-risking the treasury with a stable and productive asset will also allow us to fund programs via USDC instead of our governance token ($FF), especially given how volatile the market can be wh... See more