Thanks for sharing your vision and strategy for the treasury
Aave treasury’s major component is the Ecosystem Reserve with AAVE tokens not included in the circulating supply. One thing to consider is as soon as the DAO decides to allocate or exchange them this increases the circulating supply
There are an additional $20m or so mostly collected via the Reserve Factor, held in aToken. These have the significant benefit of accruing yields for borrowing but are on the Aave Protocol
Risk-wise, this means the Aave DAO’s treasury relies exclusively on Aave (either the protocol or the token) leading to very concentrated risks
Really looking forward to a more diversified approach:
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Funding growth via grants has strengthened the Aave ecosystem; taking on participation in these early projects could further solidify the benefits in the Aave DAO treasury. This would also encourage further contributions from the Aave DAO members in these early projects
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Alliances with other DAOs could also be promising. For example, @Dydymoon Curve Alliance ARC, validated via snapshot, could boost rewards both for depositing on curve.fi and by voting in for aToken Curve LPs
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Hedging is also an interesting option, in particular for the Safety Module which is heavily exposed to AAVE
I’ve been really enjoying using the Aave Treasury Dune Dashboard and was impressed to hear @MSilb7 work around to calculate aToken interests with Dune. Aave has just been integrated via a grant to Flipside Crypto which looks exactly like Dune but does capture aToken accrual. Could be interesting to have some similar dashboards across platforms to compare results. Can’t wait to see more of these analytics, would be great to see a live version of Aave Weekly or Monthly for example