đŧTreasury Managers
Last updated
Last updated
Treasury management in DeFi is a burgeoning space given the number of tokens that are part of the treasury and need to be managed properly. Although these managers do excellent work on risk and reward analysis on treasury asset allocation, they don't have advanced on-chain execution engines to complete the trades.
Treasury managers are DeFi-native organizations that are comfortable interacting with smart contracts. Some of these teams have even implemented products that leverage existing technologies.
However, as explained in the Open Market Operations section, these tools lack flexibility, gas optimizations, and MEV resistance.
The below MakerDAO example is as simple as executing:Sell $3.5B ETH <> USDC in 90 days (648000 blocks).That trade would sell roughly $5400 of ETH per block or roughly 3.3 ETH @ $1600 ETH/USDC.
This trade is so big that it can't be executed on-chain without causing havoc across the entire DeFi system because of the price dumping drastically and the second-order effects on other protocols.
TWAMMs help increases the anti-fragility of blockchains.
TWAP buying and selling large orders is a tried and old strategy. TWAMM is the next evolution of the strategy that happens on-chain and is aware of the limitations of blockchains like gas, MEV, and liquidity.
Additionally, the TWAP tools on the market depend on keepers and external inputs that make them execute discretely and non-automated. This is not an ideal solution for DAOs and protocols that want to have an automated system with zero maintenance.
Aave Treasury Diversification:https://governance.aave.com/t/aave-initial-treasury-strategy/5602/6
Aave Treasury Managment:https://governance.aave.com/t/the-aave-treasury-management-vision/5157/3
Gitcoin Treasury Diversification: https://gov.gitcoin.co/t/gitcoin-treasury-diversification/9698
Nouns DAO Treasury Report: https://llama.mirror.xyz/cXx3ed66iXem3yRfTeImIi72RHesHvqXlXsaq-VX9RU
Gnosis DAO Treasury Management: https://forum.gnosis.io/t/gip-20-karpatkey-dao-treasury-management/2233
ENS DAO Endaoment: https://discuss.ens.domains/t/endowment-initiation/15952
Balancer Treasury Management: https://forum.balancer.fi/t/bip-162-karpatkey-investment-strategy/4220
