Introducing Element’s Treasury Management Initiative

We are excited to push forward our initiative for treasury management solutions using DeFi.

Treasuries have a diverse set of needs, such as compensating contributors, paying for operating expenses, maintaining healthy growth in a volatile market, among other contributing factors.

For the vast majority of protocol and DAO treasuries, participation in DeFi for allocation of assets is still relatively underemployed, which is a huge missed opportunity for growth.

We at Element are making strong efforts to develop this emerging use case and help make treasury management easier.

Solution

Element’s capital flexibility is a great solution, offering treasuries a way to get a fixed or variable rate exposure on their capital depending on their risk profile and allocation strategy.

Element is the perfect treasury diversification solution for DeFi protocols, allowing them to earn fixed rates on their treasury capital (or a portion of it) while maintaining the ability to exit if needed.

Treasury management is typically a conservative approach to capital management, due to the many responsibilities tied to this capital, as well as the need for a certain degree of predictability around it, if at least for budgetary allocation purposes. As such, we focus on fixed rates as a solution instead of variable rates. This allows Element to provide structured, reliable, and predictable capital growth, even within the volatile market that governs the DeFi space, while maintaining capital efficiency.

Our goal is for asset managers to be able to take a passive long-term strategy with minimal exposure to interest rate risks and incrementally grow the size of their treasury using Element.

Showcase

Opolis

ChainSafe

Next Steps — Reach Out!

As a next step, we plan to do a follow-up post going into further details about our approach to treasury management and highlight our feedback and results from our conversations with protocols, DAOs, and institutions.

We are actively speaking with DAOs and DeFi protocols interested in leveraging Element for their treasury management needs. If you’re interested in using Element for your protocol or DAO treasury, please reach out to us on Twitter or fill out the Treasury Management Inquiry form!

Join Our Community! 🧝

We want to hear from you! You can always ask questions in our Discord if you need any help, feedback, or just want to learn more about Element.

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Shout out to the amazing MazyGio for contributing to this blog post!