The Aave Treasury Management Vision

In traditional accounting, we measure the decision-usefulness of financial reporting in two ways: relevance and faithful representation. Relevance refers to whether the financial reports include line items that are material, comparable between periods, and verifiable. Faithful representation refers to the financial information being complete, free ... See more

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

Aave DAO can utilize token swaps to form alliances with other DAOs. Alliances can help Aave with integrating relevant products, improving TVL, and increasing stablecoin deposits. Alliances are also very useful for DAOs to help each other in times of need, such as during smart contract exploits. 

Real Time Data MetricsPerformance AnalysisFinancial ReportingCash Flow StatementBalance SheetIncome StatementBudgeting / Forecasting Expenses

After ensuring operational needs are accounted for, illiquidity can be used to capture higher returns. Theoretically, and as part of the analysis when making an investment, illiquid assets (e.g. seed stage investments or strategic cross-DAO partnerships with defined lock-up terms) should capture a return premium relative to liquid assets. This is w... See more

Live financial tracking accessible via Dune and/or other platforms will enable performance to be measured in real time. This will provide visibility into what is happening on-chain in an easy to interpret manner and hopefully encourage community members to engage in discussion across the community. Aave intends to provide the following financial in... See more

Aave’s treasury contains an overweight AAVE position that provides exposure to the future success and upside in the token price. However, the associated volatility and downside risks are not desirable. As such, Aave is exploring ways to reduce exposure to any meaningful deterioration in market conditions. 

Managing the progression from using AAVE to aTokens for paying expenses shall require budgeting for future costs, forecasting future revenue and considering other potential use cases for aTokens. Ultimately, the vision is to have sufficient aToken inflows to accommodate all use cases. 

A Treasury Committee is to be created consisting of 5 community-elected individuals from within Aave and Llama. The committee will help shape how the treasury is managed, as well as ensuring there is open and transparent communication and alignment across the broader Aave ecosystem. The standard ARC and AIP process will be followed for all treasury... See more