Over the past decade , The Internet has greatly changed the nature of our work , This is something that no technology in human history has ever done . People sit at home , Collaborate remotely with a group of anonymous people , Live a decent life , This was unheard of in the past . From small to large , I've always heard that San Francisco is a paradise for ordinary people to seek opportunities .2017 Since then , I have seen that this trend is turning to the blockchain industry . We have discussed many times , How will reputation on the chain contribute toPlay an increasingly important role in cooperation . however , In order to facilitate the regulation of the resources of these agreements , We need infrastructure to facilitate decision-making and resource allocation . This is it. The origin of .
DAO It's essentially a “ Headless ” organization （ namely , An organization without a leader's control ）, Run... Based on the instructions given by the code , And manage through interaction on the chain . The traditional corporate governance model can be completely implemented on the chain . Now ,DAO It is widely used to buy NFT（ for example PleasrDAO） To venture capital （ for example Metacartel and SyndicateDAO） And all the interactions on the chain that need to be coordinated . In other words ,DAO It is a blockchain native module that redirects resources based on requirements , Subvert people's traditional ideas about how to build and operate institutions to achieve equal ownership and transparent governance . This article will not delve into DAO The impact on culture , If you want to know more about DAO, It is recommended to read this article about DAO Articles on pre birth history .
“ The unicorn ” Lead the new trend
front 12 Big DAO The lock up amount of the Treasury （ Company ： dollar ）
The frenzy of the open market means DeFi The agreement will reach a billion dollar valuation much faster . In numberfield , Most teams will reserve some liquidity supply for themselves . How much is a variable , Depending on the nature of the company ,10% to 20% Both are possible . If a team reaches a valuation of billions of dollars , We need to find new ways to distribute new wealth , Increase the benefits of the agreement . In many cases , these Are locked in DAO Inside , And managed by the community .
Manage the agreement Treasury DAO Have a special status .
- Selling assets on the open market may send a bearish signal , Causing asset prices to plunge . some DeFi The agreement will privately sign a sale and purchase agreement with the venture capital institution to avoid this risk . however , This practice may be contrary to the spirit of community governance .
- Another way is to publicly announce the voting of the community . however , This can cause great confusion ,Sushi It's a lesson from the past . The community may not be able to reach an agreement within an effective time .
what's more , Many large organizations prefer to buy assets from the open market to avoid censorship . therefore , Some big DAO The wealth of the Treasury is mainly concentrated in a few types of assets , Resulting in targeted exposure . The following figure shows the mainstream DAO The distribution ratio of Treasury （ Company ： dollar ）.
Data sources ：Deepdao.io
Due to cryptography, the money market has a strong periodicity ,DAO The Treasury needs to calculate its assets regularly . Selling assets in a bull market can make DAO Treasury's team will run longer , And have enough resources to make strategic acquisitions when the market falls . In this paper , We outline the fund allocation scheme of the University Endowment Fund , Then evaluated some information about DAO Solutions for Treasury how to hedge risks . In this regard ,DAO The Treasury is the same as the University Endowment Fund . The goal of both is to achieve long-term and steady development , Ensure that there are sufficient funds for operation and deployment in the bear market .
Current assets account for a large proportion of university endowment funds ： Take Yale University 2020 Take the endowment fund allocation in as an example , bond + cash + The proportion of absolute return products is as high as 31%. In terms of design , The endowment foundation reserves part of the funds for the allocation of risk-free assets , To avoid the lack of liquidity during the economic crisis . thus , The endowment fund can hold assets such as equity and venture capital for a long time , Enjoy compound interest return . If inflation is the sworn enemy of endowment funds , Then the market downturn is DAO The enemy of the Treasury . As mentioned above ,DAO The assets held by the Treasury are mainly composed of agreed tokens . It's a good thing to capture value from the growth of the agreement , But there are also disadvantages , Because market turbulence will affect cash flow , Or because of expenditure expansion 、 The high opportunity cost of dealing with economic exploitation or hacker attacks . Many agreements have native tokens to rely on . If they don't just rely on native tokens , Can better manage this risk . Let's take a look at the number one DAO Treasury Uniswap.
Uniswap The dollar value of the Treasury
Due to recent 2 Over the past three months, the currency price hit a new high and went all the way down ,UNI The dollar value of the Treasury has shrunk 50% above . As the market begins to recover ,UNI The Treasury recovered some losses . Such drastic market fluctuations can be called a nightmare for fund managers , It highlights the necessity of improving the asset allocation of Treasury . If the Treasury concentrates its wealth on tokens and ignores risk management , The agreement is difficult to survive the long winter of the cryptocurrency industry . The project needs to transform the Treasury into its own competitive advantage , Instead of just relying on initial financing . We delve into some potential solutions to Treasury liquidity problems and trade-offs .
scene ： Treasury sells covered call options during periods of market volatility （covered call） To finance put options , Or simply buy put options to hedge the risk of falling prices .
Put option and call option are both financial instruments , The former bet that the price of an asset will fall in a certain period of time in the future , The latter bet that prices will rise . Selling a covered call option means that the Treasury holds the underlying asset and sells the right to buy the asset at a price higher than the current price （ Call options ）. If the price of the underlying asset rises , Selling the call option will not cause a great loss to the agreed Treasury . If you want to know more about covered call options , Please read this article , Or watch this funny video . The premium earned from selling a call option can be used to pay the premium for buying a put option . This effectively offsets the cost of Treasury buying put options .
In an ideal situation , The agreement will buy put options to hedge some Treasury risks . If the price of the assets held in the agreement decreases , It will bring profits to the agreement . in addition , This actually sets a price floor , Once below this price , The agreement will convert the underlying asset into a stable currency , Instead of continuing to hold the underlying assets . The problem lies in , The liquidity of options in the chain may not be enough to realize transactions of this scale . Suppose the agreement wants to hedge at least 10% The risk of your assets , So just Uniswap The Treasury needs to hedge more than 1 Billion dollars in assets . Let's compare the option agreement on the head chain Opyn, The total lock up amount is 8200 Thousands of dollars . thus it can be seen , There is not enough liquidity in the chain market to execute hedging transactions in a capital efficient manner . The reason why we consider the option trading platform on the chain , Because DAO Treasury is likely to avoid off chain management . However , Compared with the centralized platform , The price of the platform on the chain is prohibitive . In order to achieve cost-effectiveness , The trading volume of options on the chain must increase significantly . Another problem is , This could lead to extended put options —— Buy the put option again near the maturity date to extend the term of risk hedging —— Become a recurring cost . As the field of option trading on the chain becomes more and more mature , This will be an alternative , Help Treasury effectively manage risks while ensuring full transparency （DAO One of our values ）.
Stable currency and index
scene ： Treasury holds stable currency 、 Diversified index funds and other structured income products on the chain are used as the source of working capital , Avoid selling assets at low prices when the market is depressed .
On how to ensure the long-term operation of the Treasury , A proposal that has been discussed in detail is , Invest in a variety of stable currencies . The proposal may not be supported , Because it means the agreement to sell native tokens . Although index funds are not as good as stable currencies in hedging , But holding a single token is a better way to hedge risk . what's more ,DAO Different sectors can be selected for investment according to the functions of the agreement , Ensure appropriate diversification . Interestingly , Now there are index funds that can contribute to this trend . As we mentioned in a previous article , Diversified sector index funds can be realized on the chain . The agreement can entrust the market maker to trade at a preset fee , namely , The exchange rate proposed by the individual market maker will DAO Part of the assets of the Treasury are gradually converted into other assets . thus , The agreement can buy the component tokens of the index at a more favorable price .
scene ： Treasury uses its assets as collateral to obtain working capital through chain lending , There is no need to sell tokens in advance .
The agreement can borrow funds from lenders in the chain to pay operating costs , There is no need to sell any native tokens . This allows the network to avoid selling assets in the short term . If deployed as expected , Money will have a positive impact , Even if you sell tokens later, you can repay the loan well . The underlying logic is , If one really believes that the original token of an agreement will rise in price , It is natural and reasonable to use it to pledge loans . The problem is the pledge rate . If the loan agreement （ Or venture capital institutions ） Find asset prices falling , There is good reason to sell tokens , Maintain the pledge rate at the necessary level . what's more , If the agreement is hacked , Asset prices plummeted , Lenders are at risk of losing money . The agreement can also use off chain lending to generate revenue .DAO Part of the assets of its Treasury can be liquidated into stable currency , And provide Centrifuge And other project loans . This requires DAO Some tokens must be cleared .
scene ： Treasury utilization range token
Special mention should be made here UMA Agreed range token. Recent Sushi In the storm of token sale proposal , It has been proposed as a solution . I strongly recommend that you read this article to understand what is range token.range token It is a debt instrument endorsed by the agreement Treasury , Sell the right to buy the underlying asset within a certain price range , Instead of converting original assets into stable currency . Foretell details , You can read this blog post .
range token It can make DAO Pledge their native tokens to borrow . At maturity , If the borrower fails to pay the debt ,range token The holder will receive a pledge of equal value （ Native token ） As compensation （ The specific quantity depends on the settlement price of the native token ）. for example , If the original token is in 25 The price is settled in US dollars , be 100 individual USDC Your debt will be in 4 A native token settlement （100/25）.
This avoids an agreement to sell tokens at a low price , And choose to settle in US dollars when necessary . however , This requires investors with specific risk appetite . for example , If the token price falls , So that the pledge is insufficient , The risk is borne by investors . similarly , If the transaction price is higher than the preset range , The agreement will miss this part of the rising profits . at present ,range token It's a complex tool , It may take some time to really adapt to the market , But it helps DAO One of the many innovative attempts of treasury risk management .（ I know it's a little puzzling . I will ask the rest of the team to write a clearer article as soon as possible .）
Where to go ？
According to conservative estimates , future 6 There will be at least value in months 100 $billion Treasury assets seek management . The infrastructure seeking the best asset management is still under development . Centralized service providers have gradually realized this opportunity , Startups are also taking advantage of this narrative . Because the decision-making of large capital pool is inseparable from large-scale coordination , We are still some way from efficient management . We think , There will be professional agreement fund managers in the coming quarters . They are familiar with the complex and centralized financial field , It aims to connect it with the field of decentralized Finance . meanwhile , Community and protocol developers will continue to introduce similar UMA Of range token New financial instruments like that , To promote the transformation of the financial industry . in addition , There's another possibility , The fund manager runs the portfolio completely on the chain . In later articles , We will explore in depth how hedge funds or venture funds operate in the chain . at present , We can only say that the agreement Treasury is still a sleeping beast , Waiting for someone to wake up and control it , Promote the development of the financial industry . If you are building a related project , Please email me or join our Telegram Group chat .
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