A New Mental Model for Defi Treasuries

Besides the protocol's governance token, there should be a portion of the treasury in liquid blue chip assets (e.g. ETH, BTC), stablecoins (e.g. DAI, USDC), and other assets. 

Token distribution mechanisms have adopted a lot of the structures from within the traditional financial world — including vesting schedules and vesting cliffs — which have resulted in some unintended consequences like adverse price action as tokens vest; and the inability of holders with large economic interests in a protocol to exercise governanc... See more

The vision for the Aave treasury is to encourage innovation, accelerate growth, and prudently manage financial assets, while providing relevant and transparent financial reporting content. As long term believers in Aave, the protocol is to remain overweight $AAVE capturing future growth upside, whilst hedging against the risks of adverse market con... See more