The use cases for Spool for DAOs, defined as any Decentralized Autonomous Organisation that seeks to earn yield on their treasury.
It has become a very apparent trend within DAOs to avoid holding their entire treasury in their respective base asset, since this comes with an array of risks and potential issues when liquid assets are needed. The DAOs who are shifting to the idea of holding multiple collateral treasuries have the following use cases for Spool:
- Custom Smart Vaults: Most DAOs will prefer a highly curated list of yield generators to commit their assets to. Spool allows these DAOs to select their preferred Yield Generators, a Risk Model and a Risk Appetite to fit their specific needs.
- Earn Yield on Treasury Assets: Depositing an asset into a custom Smart Vault generates yield.
- "Set-it-and-Forget-it": Most DAOs do not want to occupy themselves with managing assets in their treasuries. Efficient capital management is usually difficult due to lengthy governance processes. This decision-making process will often take longer than is required by the fast-paced nature of the market. Spool allows a DAO to generate yield with a "Set-it-and-Forget-it" mindset, freeing up time for DAO contributors without taking away any agency in how their funds are managed.
All in all, DAOs can use Spool for democratic, diversified and risk-managed treasury management without the need for constant proposals or intervention, ultimately allowing the DAO to focus on matters of concern, instead of pro-active treasury management.
A one pager has been written for DAOs to get up to speed about using the Spool Ecosystem to manage their treasury, this one pager can be downloaded below in PDF format:
Spool Treasury Management.pdf
The DAO Treasury Management One Pager.
Last modified 6mo ago