We all know what treasury management is, in the traditional world but the rise of crypto has opened new ways of more diversification and growth of treasuries. This guide is an overview of the basics of Crypto Treasury Management.
DeFi & DAOs
Back in August 2018, the term ‘DeFi’ came into the picture when Telegram chat started between Ethereum developers and entrepreneurs. And MakerDAO being the first DeFi platform and ‘ DAO’. A DAO handles everything from buying assets & NFTs to venture-style investments.
These DAOs have grown up to be really big with hefty amounts of money which needs to be managed properly. For example - Uniswap’s founder Hayden Adams tweeted quoting “ ~$500M worth of UNI has already vested to the Uniswap governance community treasury out of $4b total (based on current price)” asking about impactful ways governance can allocate this UNI.
Likewise, there are and are going to be many DAOs and crypto companies in the near future that are going to have big treasuries to be managed properly.
Crypto Treasury Management
Treasuries manage the balance sheet of a business and enable its functions to run smoothly. There is a need for active monitoring of P&L, position keeping, cash flow information, funds, and liquidity.
And treasuries being financial asset managers for a crypto company, on top of that investing spare cryptocurrency that sits on the balance sheet to generate a return. This is often a very creative exercise that involves the search for yield, liquidity, and capital efficiency.
UniSwap, for example, With the billions of dollars in its treasury which is retained by the project's governance treasury that is used in contributor grants, community initiatives, and liquidity mining.
Considerations while choosing a Crypto Treasury management Platform
- Are your full and future requirements covered so you can have a common DataMart?
- Will your Regulatory Reporting requirements be handled seamlessly?
- Can all incoming and outgoing payments be captured and records are gathered and be monitored by compliance in near real-time?
- Does it eliminate all spreadsheet use, manual, and paper processes?
- Can it handle and support payments in existing & future ERC 20 tokens and stablecoins?
- Does it have multisig functionality to set transaction thresholds for owners and budget approvals?
MultiSafe is a treasury management platform that is helping various Individuals, crypto companies, and DAOs with the DataMart of all incoming and outgoing payments, maintaining records, supports various ERC-20 tokens the existing ones and the others, and there is a lot you can explore using our Webapp.
MultiSafe aims to simplify crypto treasury management for Companies & DAOs - built using Gnosis Safe, IPFS & Filecoin.
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