DIP063 - Treasury Management Proposal

Abstract

The vision of dForce Treasury is to enhance the operational efficiency, financial stability, and drive the strategic growth of the dForce network, while committing to maintain open and transparent financial practices. This fosters a culture of trust and accountability, ensuring that community members are well-informed and can contribute to the ecosystem’s governance and decision-making processes.

Asset Management

At dForce, we’ve recognized the critical importance of effectively managing our treasury assets to sustainably drive the long-term growth and prosperity of our ecosystem. Our treasury comprises not only protocol revenues but also includes grants received from various ecosystem foundations, such as the airdrops from Arbitrum and Polygon.

To ensure that we navigate the dynamic landscape of the crypto market with prudence and foresight, we propose a comprehensive approach to treasury management that encapsulates the following key principles:

  1. Strategic Diversification: While we acknowledge the significance of major cryptocurrencies like BTC and ETH, we understand that excessive exposure to any single asset can pose concentration risks. Therefore, we advocate for a balanced portfolio where non-major cryptocurrencies (assets other than top 30 cryptos, plus stablecoins) shall not constitute more than 50% of the total non-DF treasury portfolio. This strategic diversification not only mitigates risk but also enhances our resilience against market volatility.
  2. Financial Stewardship and Sustainability: Our core team is deeply committed to upholding the highest standards of financial stewardship. We recognize that effective treasury management is not solely about short-term gains but rather about fostering the sustainable growth of our ecosystem. As such, every decision pertaining to the treasury will be guided by our unwavering dedication to maximizing the long-term financial soundness and vitality of the DAO.
  3. Efficiency and execution In this rapidly evolving crypto landscape, agility and efficient execution are paramount. To optimize the execution of our treasury management strategies, we will leverage a diverse array of tools and resources available to us. This includes utilizing all available venues, including DEX / CEX / OTC / external traders, market makers, or brokers. By adopting a multifaceted approach, we aim to enhance the efficiency and effectiveness of our treasury operations.
  4. Delegation. The core contributors are fully delegated by the DAO to carry out the execution of treasury management, including but not limited to diversification, liquidity provision etc.

Conclusion

In conclusion, our Treasury Management Proposal represents a holistic and forward-thinking approach to safeguarding and optimizing the treasury resources of dForce.