You can read our latest blog post about treasury management here
ParaSwap currently has ~100% of its treasury is in the native token. While we’re not advocating active management, (please don’t be traders) we know setting up runway, being able to mitigate market turbulence, and having established channels to do this is necessary for the long-term health of any protocol.
Auctioning PSP with custom vesting options, with sealed bids, would allow for diversification while also making sure buyers (likely VCs or MMs) don’t dump on the community, something other treasuries have endured in the past.
We’d love to talk more about how SIZE can help or answer any questions.
although the PSP allocation is a major part of the DAO’s cash flow, staking 2.0 and social escrow have introduced another important income for the DAO which will in fact make the DAO’s cash flow naturaly more diversified overtime (in the sense that there will be two tokens instead of one - I’m not counting the various grants or airdrop received).
Have you looked into the different revenues of the DAO? We could actually not use PSP to deversify and avoid sell pressure if we are going in this direction (even if it could be slower).
Can you define your service more precisely, is it only the onchain sales tool in OTC auctions, or do you also provide diversification advisory?
I read your article and the examples are very interesting. However, your site is a little light on judging your legitimacy at first glance, despite your fundraising last year (congratulations).
Do you work or have you worked with other DAOs/Protocols so that we can get feedback on your service?
SIZE doesn’t offer diversification strategies, leaving that up to the DAOs, just a protocol for on-chain auctions.
SIZE’s most recent auction was a few days ago for 1M GRT ($140k USD) sold. There are a few more auctions lined up this week and several others are in the pipeline. The site is currently whitelist only.
Other cash flow alternatives are a great start, SIZE auctions are an option for diversification now while still avoiding sale pressure with vesting, as you mentioned.
The revenue generated by the DAO through PSP 2.0 has just recently been integrated and we can hardly see the impact this will have on its cash flow.
We are still making adjustments to this system and don’t have enough history to start projecting into a next step that is there diversification.
As you mentioned, SIZE offers the tool, not the strategy, but unless I’m mistaken, there hasn’t been any discussion about that yet because it will probably come at a later stage when we have stabilised revenues.
This is only my personal opinion of course but I think that at this stage of the DAO it is too early to think about the DAO fund diversification tool.
This kind of consultation would be useful when revenues are stabilised and a strategy is thought out and voted by the DAO.