Treasury Management for DAOs

Goal

Every DAO needs to manage its treasury.

The data we are curating and the risk management tools we are developing at Credmark are indispensable to anyone responsible for treasury management. In the spirit of eating our own dog food and radical transparency we intend to fully document our treasury management activity.

We hope our work can help others achieve healthy returns while minimizing downside risk.

Strategy

This is a living document. It will evolve over time. In order to avoid losing history each treasury management cycle will be documented separately.

Decision making, execution, analysis, and reporting will be done by the core Credmark team for the first few cycles. Much of that work will be manual. All of it will be published, no matter how embarrassing. 🙂

Over time, analysis and reporting will be automated. We will, of course, publish any tools we develop.

Over time, decision making will be transferred to our community and will be subject to our standard governance process.

Eventually, execution will be transferred to our community as well.

Objectives

• Manage financial risk safely and soundly within the boundaries set by the core team or community.

• Maintain sufficient liquidity to meet all payment obligations, both under normal conditions and in case of liquidity stress.

• Generate returns in line with expectations set by the core team or community.

• Monitor risk exposure in line with industry best practices. (These are being developed starting from traditional finance industry best practices.)