Gov. token collateralised bonds to mobilise the treasury

0 replies, 1385 views, 0 likes


X50 proposes a solution to the 'illiquidity 101' problem in DAO treasury management by suggesting the use of 5% of AaveDAO treasury's Aave tokens as 1:1 collateral for bonds. This could potentially generate $6.75 million in liquid assets for the DAO, with the proposal currently open for community feedback.

The discussion primarily revolves around the 'illiquidity 101' problem that DAO treasury management is currently grappling with. The issue at hand is the challenge of diversifying and mobilising treasury value without adversely affecting token holders. In response to this, X50 has put forth a potential solution. The proposal suggests using 5% of the Aave tokens, currently held in the AaveDAO treasury, as 1:1 collateral for bonds. These bonds would then be made available on the open market and are expected to yield a 5% return annually.

This innovative approach could potentially generate a substantial $6.75 million of liquid assets for the DAO. These funds could then be strategically utilized for various purposes. The proposal by X50 is currently open for community feedback, marking an important step towards addressing the 'illiquidity 101' problem. The community's response to this proposal will be crucial in determining the next steps for DAO treasury management.

Posted a year ago

Last reply a year ago

Summary updated 2 months ago

Last updated 09/12 13:53