Olympus DAO establishes a new treasury strategy and framework

Olympus DAO establishes a new treasury strategy and framework

Olympus DAO has ratified a proposal seeking to establish a new framework for its DAO treasury. The recently passed OIP recommends a maximum protocol exposure of 60%, as well as an asset mix of 75% stable and 25 volatile asset combinations.

“OIP-137: Treasury Framework” was approved on Friday, after receiving more than 98% support from the voters. The new framework covers areas such as guiding policy, asset allocation process, strategic assets, and treasury composition.

The guiding policy for the new framework will prioritize conservative deployment instead of active and aggressive investments. It will also favor “organic third-party proposals to ensure the framework is compatible with an on-chained governed future.”

Currently, the DAO’s treasury is made up of about 79% stable assets and 21% volatile assets. Moving forward, the community will increase its exposure to volatile assets such as Ethereum to 25%. Along with this, the DAO will reduce its exposure to centralized stablecoins by more than 10% by increasing the cap for LUSD to 10%. Meanwhile, the treasury will go through rebalancing whenever weights deviate more than 10% from targets.

Still on the subject of treasury composition, the proposal recommended limiting deployments into illiquid venues to 7.5% of the treasury. Illiquid investments in this case are venues that have a maturity or lock-up period of more than 4 months. “In no event shall the treasury deploy into assets with maturity or lock-up greater than 1 year, with the exception of select strategic assets acquired via DAO swap or other similar arrangements, which today include FXS and JONES,” the proposal stated.

The proposal also recommends limiting the DAO’s maximum exposure to any protocol or project to 60% of the treasury.

Subscribe to our weekly DAO newsletter and follow us on Twitter to stay up to date with important DAO news and knowledge. Contact us at contact@daotimes.com to pitch a story or share your thoughts. Let's build the future of decentralized organizations together.

Check BTC Peers guide of the most promising crypto

Read more

MANTRA Secures Strategic Investment from Nomura’s Laser Digital to Accelerate RWA Tokenization Initiatives in the Middle East and Asia

MANTRA Secures Strategic Investment from Nomura’s Laser Digital to Accelerate RWA Tokenization Initiatives in the Middle East and Asia

Dubai, UAE, May 23rd, 2024, Chainwire MANTRA, a Layer 1 blockchain solution for Real World Assets (RWA), today announced a strategic investment from Laser Digital, Nomura’s digital asset subsidiary. This additional investment, extending the recent funding round, aims to accelerate MANTRA towards its goal of becoming the de-facto RWA

By Makoto Takahiro