Discussion Regarding Treasury Management
Introduction
I’m opening a discussion regarding Shutter DAO 0x36 treasury management.
In this context: “treasury management” refers to investing Shutter DAO 0x36’s non-SHU assets. It does not refer to treasury diversification activities like selling SHU, treasury swaps, etc.
As of 10 April 2024, Shutter DAO 0x36’s non-SHU assets include:
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6,538,086.22 USDC
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3 ETH
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Uniswap v2 LP tokens (not relevant here)
Treasury management could allow Shutter DAO 0x36 to earn yield and generate additional resources /runway for the project until these assets are needed for grants, liquidity or other purposes.
Considerations
Trust & Custody
Should Shutter DAO 0x36 insist on trustless non-custodial treasury management solutions? Or should Shutter DAO 0x36 be open to some forms of trusted custodial solutions?
Scope (Short Term / Long Term)
What amount (or percentage) of non-SHU assets should Shutter DAO 0x36 hold in the treasury for immediate use? What amount (or percentage) of non-SHU assets should Shutter DAO 0x36 invest?
Risk / Reward Appetite
What level or risk and reward does Shutter DAO 0x36 desire? Does Shutter DAO 0x36 seek a “risk free” rate of return? Or does Shutter DAO 0x36 want to maximize earned yield with potentially higher risk?
Management / Optimization
How “hands on” does Shutter DAO 0x36 wish to be? Does Shutter DAO 0x36 want to actively manage its investments in order to ensure they are highly optimized? Or does Shutter DAO 0x36 prefer a “set it and forget it” solution?
Compensation
Should Shutter DAO 0x36 insist that all service providers / platforms submit bids in response to a Request For Proposals with an identical compensation model? Or should Shutter DAO 0x36 allow service providers / platforms to submit bids with their preferred compensation model.
If Shutter DAO 0x36 insists on the identical compensation model, then which model - percentage of performance (profit), monthly service fee, other?
Chain
Does Shutter DAO 0x36 have a strong preference regarding which chain(s) treasury management takes place on?
Responsibility
Who should be given responsibility for making decisions regarding treasury management? Should every decision be put to a full vote by the Shutter DAO 0x36 members? Or should there be a sub-DAO to make certain decisions - i.e, changes in investment strategies, responding to emergencies, etc.?
Next Steps
- Discussion & signaling
- Proposal to create an RFP for treasury management services
- RFP for treasury management services
- Temperature check to select service provider / platform
- Negotiation of final terms of service
- Fractal vote to implement
Discussion
Please comment below if you …
- Have comments, suggestions and/or questions
- Are interested in working on this topic