Nothing in this document should be considered financial advice. Please do careful research of each strategy before deploying capital.
Current DAO Treasury Capabilities
- Multi-sig ability to send funds to individual addresses
- Through Contract Interaction, you have to find contract ABI from the Dex contract.
Multi-sig will need to ability to execute smart-contracts to enable assets swaps (between ONE and stables) and yield farming.
Dictated Strategies based on Market Conditions
Bear Market (prices are trending downward)
To preserve capital for operations, DAOs may consider converting treasury funds to stablecoins. These stablecoins can earn yield for the DAO.
It is wise to diversify assets across different protocols to reduce exposure to smart-contract risk.
On-Chain (Harmony) Options
- 8-25% APR on USDC and USDT
- Note: Rewards are earned in HND, which would need to be sold on SushiSwap to lock in the returns.
- Synapse Protocol
- Up to 10% APY
- 2-5% APR on stables
- Curve.fi + StakeDAO
- This is a 2-step process that first involves depositing stablecoins into the 3 pool to receive 3Crv. Then the DAO would deposit 3Crv into StakeDAO for additional rewards. This is best for long holding due to the multiple transactions involved and 0.5% withdrawal fee.
- Choose “Deposit”
- Connect wallet and deposit 3Crv
- Validator Staking
- 9-10% APY
- Note: it takes 7 epochs (~8 days) to withdraw ONE that is staked.
- Using Tranquil’s stONE to stake to Validators. This adds flexibility and additional yield opportunities compared to traditional staking.
- Use Tranquil’s money market to stake ONE, stONE or both for a combination of APYs.
- ONE can be used as collateral to borrow stONE, and then the stONE can be used to provide more collateral. Since ONE and stONE are nearly identical in price - there is near-zero liquidation risk.
Other-Chain (non-Harmony) Options
Popular options include various Convex and Curve pools on Ethereum, typically using a FRAX pair.
Balancer also has some attractive stablecoin yields
Bull Market (prices are trending upward)
Treasuries may want to keep more exposure to ONE during uptrends to benefit from overall market growth. These are places to earn additional yield while holding ONE.
Crab Market (prices are moving sideways in a choppy fashion)
Treasuries may combine the above strategies in percentages that suffice their risk appetite. It’s important to preserve capital as continued DAO operations should be considered the utmost priority.