Optimizing TracerDAO's treasury reserves

I would like to start a discussion and see what the community thinks about deploying Tracer’s treasury (now or in the future) on a Yield Agreggator to earn yield.

Checking yearn.finance, which is arguably the best and most trusted Yield Aggregator proyect on Ethereum, I see that stablecoin vaults such as DAI or USDC are currently generating around 10-15% APY.

I think this is a pretty safe and straightforward way to optimize our treasury reserves.

What do you guys think?

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Love to see that you’re thinking ahead @m4ri0ml. Definitely a process that will need to be considered for greater capital efficiency.

I think the question boils down to when the best time is to implement. In the short term, the DAO funds will be needed for operations such as audits. As the treasury grows, I believe we could see proportions of the treasury being allocated to Operations/Yield Aggregator/Grants. We will need to decide on when the best time is for this to occur and what proportion % will be most effective.

Keen to hear others’ thoughts on this.

This is very much one of the things we (at the RMIT BIH) have discussed - but not yet given serious time and work to. The issues are how much of a Treasury need be held in the native token, and how much in non-native tokens. Then the rules to spend the Treasury. Then the whole issue of cash/liquidity management - that is the immediate issue here. How much of the Treasury need be held in highly liquid forms and how much in less liquid forms. There is a cefi literature on this - but not yet a defi literature. The challenge right for us is that the to-do list only ever gets longer.