Ribbon Finance
  • Introduction to Ribbon Finance
  • Aevo
  • FAQ
    • General
    • DOV Deposits
    • DOV Withdrawals
    • DOV Trading and options
    • Ribbonomics
  • Dune dashboards
  • Contribute
  • Security
  • Ribbon Theta Vaults
    • Introduction to Theta Vaults
      • Strike Selection and Expiry
      • Options Architecture
      • Options Settlement
      • Auctions
      • Risk profile
      • Fees
    • Theta vaults architecture
    • User guides
      • How to deposit
      • How to withdraw
      • How to pause and resume
      • How to stake, unstake vault shares and claim rewards
      • How to transfer vault positions
      • How to participate in Paradigm Auctions
      • How to redeem oTokens
  • RIBBON EARN
    • Introduction to Ribbon Earn
    • Ribbon Earn USDC
      • Risk-Free Rate
      • Twin win strategy
      • Vault specifications
      • Eligibility
      • Fees
    • Ribbon Earn stETH
      • What is a dolphin strategy?
      • Vault specifications
      • Risk profile
      • Fees
  • RIBBON LEND
    • Introduction to Ribbon Lend
      • Yields from unsecured lending
      • No lockups
        • Pool status
        • Default
      • Off-chain enforcement / credit underwriting
      • Built-in insurance
      • Fees
  • ribbon treasury
    • Introduction to Ribbon Treasury
      • Why Ribbon Treasury?
      • Partners
      • How to get involved
  • Ribbonomics
    • Overview and RBN tokenomics
      • Vote-Escrowed RBN
      • Fee Collection and Distribution
      • Liquidity Gauges and RBN Emissions
      • Gauge Weight Voting
      • Bribes
        • Guide to Boost Bribing
          • For Bribers
          • For veRBN Holders
      • Upgrades
    • How to lock RBN, boost and claim protocol revenues
  • Developers
    • Deployed Contracts
    • Ribbon Subgraph
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  1. ribbon treasury
  2. Introduction to Ribbon Treasury

Why Ribbon Treasury?

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Last updated 2 years ago

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As noted in Hasu’s , many DAO treasuries consist primarily of their own native token, which should not/cannot be considered as a real treasury. Ribbon Treasury allows DAOs to generate income on their native tokens and build a healthy diversified portfolio of assets.

We think this makes it a perfect product for DAO treasuries for multiple reasons:

  1. DAOs who are sitting on hundreds of millions of dollars of their own native token often have no way to generate yield on them. Covered calls unlocks significantly higher income generation on those assets;

  2. Instead of selling tokens on the open market to diversify the treasury, DAOs could sell covered calls on their native asset and collect the premiums in stables;

  3. DAOs are well suited to sell upside volatility in their own native token in exchange for cash today. In the case that the token is flat or down, the DAO would have collected premiums for free. In the case that the token goes up significantly, the DAO would have given up some of that upside — which is totally reasonable risk-reward for a DAO that already owns significant amounts of the native token.

“A New Mental Model for Defi Treasuries”