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Treasury assets are managed based on strategies proposed and voted upon by SPR token holders — a diverse group of individuals with vast experience in DeFi. This decentralized process allows for efficient utilization of these assets. By holding SPR, users are participating in the governance of the Spiral DAO and its Treasury, making key decisions on how these assets are utilized.
Spiral DAO allocates liquidity into different strategies with three key goals in mind:
- 1.Protecting the Treasury from dilution - Spiral DAO market share of a token aims to always increase. E.g.: If Spiral DAO achieves a 10% market share of a token as more tokens are minted, Spiral DAO will aim to increase its share, and the number will never go below that 10% unless the DAO decides to do so.
- 2.Identifying, building, and deploying secure strategies to take advantage of profitable, sustainable yield sources.
- 3.Efficient treasury management - balancing asset ratios within the Spiral DAO treasury to meet the voted-upon risk profile of the Spiral community.
- 4.Fair exit - if the total supply of COIL becomes less in value than Treasury, DAO will perform buybacks or provide any other possibility to redeem its tokens with a small penalty. We plan to allocate part of the Treasury for a UniV3 moving wall at 90-95% of SPR treasury backing. This way, any user can have a direct route to exit the project if the market cap goes below backing.
There will be a 20% performance fee on new yields and inflows to the Treasury to cover running costs and incentivize the most active DAO members. As a result, Treasury won't be a source of funds for the work of the DAO.
The future ratio of each asset will be decided based on voting.
Initial Treasury composition was chosen with an aim to keep a limited exposure towards volatility and have enough USD to sustain a decent amount of Protocol Owned Liquidity. After the initial days, Treasury will increase its exposure towards CRV-BAL-FXS and many more ecosystems.
Initial treasury composition
It will change in the future to better fit market conditions.