DAO Treasury Management

By jer979!! | | 10 May 2022

There’s a slide in the Crypto Futura Fund deck that has a chart with 3 columns.

In column 1, there is a list of industries, such as “remittances.”

In column 2, there is a list of crypto-based approaches to providing those services, such as “Bitcoin.”

In column 3, there is a list of existing companies that are at risk, whether they know it or not, such as “Moneygram.”

Yesterday, I was updating that slide (actually there are 3 slides, since the list is so long) and I added a new line.

“Corporate Treasury Management.”

When a large company sits on a pile of assets, such as cash, their own stock, and the stock of companies they have acquired or just investments, I would imagine there’s a team of people that are responsible for optimizing the yield on those investments, while minimizing risk.

This is what university endowments do as well.

I was thinking about this as I read the Messari report on The Health of DAO Treasuries. There are a lot of DAOs out there now and some of them have a fair bit of assets under management.

And within those treasuries, there’s a mixture of assets.

Now one thing that all of these DAOs should do is to take out some insurance against the rapid depreciation of their own currency, as well as the risk of stablecoin depegging (hint: this is why Nexus Mutual).

However, they also need help in figuring out how to allocate their treasury portfolios to help them achieve their long term goals.

It’s like financial planning for DAOs, but I can guarantee that it’s not going to be a Morgan Stanley wealth advisor who does it.

It’s going to be an entire new market and a quick search for “DAO Treasury Management Services” confirms that.

Places like Llama DAO and Bancor are emerging as well as many, many others.

Bottom line: we’re seeing an entirely new, decentralized treasury management industry emerging in front of our eyes.

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