The Aave Treasury Management Vision

The annual budget for a treasury should be decided based on the protocol’s needs and its treasury size. Ideally, a protocol’s annual budget should be less than its expected revenue (e.g. Uniswap fee revenue) and treasury investment income.

Compounding: prevent harming treasury returns by giving away tokens at inopportune times

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.

DAO treasuries are typically thought to be transparent. But if you need to spend several hours digging through Etherscan, Discourse forums, and voting tools to get a summary of the treasury’s activities, is the transparency useful?