The Yield Question No One Wants To Address

The Aave Treasury ought to be utilised by the community to reflect the values and ambitions of the protocol. The protocol seeks growth and the accumulation of strategic assets, while continuing to be a leading DeFi citizen. Financial capital is to be deployed with holistic oversight, balancing a longer-term vision with consideration towards shorter... See more

Gives a brilliant and very cynical description of the Ponzi nature of yield farming in DeFi. Shed some light on how it is no so different from startups nowadays that keeps raising more money despite net negative return, as long as they have a grand narrative with a big promised profit at the end.

That said, the platform may not have a clear sense of the contributions’ value, especially early on, so there needs to be a mechanism for experimentation and recalibration around token distribution.

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