As the decentralized finance (DeFi) landscape evolves, Balancer DAO's treasury is making strategic moves to diversify. This shift is not only reshaping their financial portfolio but also setting a precedent for other DAOs in the DeFi space.
The Balancer community has begun integrating itself with other decentralized finance protocols by trading its governance tokens for those of other DAOs, also known as treasury swaps.
This could be the start of a larger trend of DAOs taking a more active role in other DAO, using the strength of their holdings to trade for influence across decentralized finance (DeFi).
PrimeDAO
Wants to get Balancer directly involved in its operations
- Is asking for 25,000 BAL ($405,000) to use for a pool with equal parts of its token, PRIME, and BAL on Balancer
- Will return half the liquidity provider tokens for that pool to the Balancer treasury so they will each benefit from trading fees and BAL rewards on the pool
Fei
With Fei, the Balancer DAO voted to trade 200,000 BAL from its treasury for equal parts of Fei’s two tokens: FEI, its stablecoin, and TRIBE, its governance token.
- The deal enables Balancer to lock in some of its treasury value with a stablecoin (which is insurance against a downturn), and to earn yield using Fei’s incentivized staking program, should it choose to do so.
mStable
The stablecoin yield platform wants Balancer to become an active part of its governance process and to advocate for BAL holders.
- To that end, they have proposed a trade between the two projects treasuries: 20,000 of Balancer’s governance token, BAL, for MTA tokens of equal value ($322,000 as of Wednesday afternoon in New York)
- Balancer would then participate in mStability governance with its MTA tokens
