Uniswap Treasury Working Group (UTWG) Interim Update

Hello Uniswap Community,

The Uniswap Treasury Working Group (UTWG) is posting this update to share progress on our work and provide visibility into some of the topics that our team is actively exploring.

TL;DR:

The Uniswap Treasury Working Group was formed to address the volatility and underutilization of the Uniswap treasury. Its scope is to research and present a diverse set of options in terms of treasury management strategies for the DAO, ensuring long-term sustainability and growth for the protocol. This work aims to help facilitate the DAO’s decision-making process when devising and implementing various methods for mobilizing treasury funds.

What have we accomplished so far?

One of our predominant goals is to attain a comprehensive understanding of how to utilize the Uniswap treasury through an aggregation of numerous stakeholders’ perspectives. Therefore, our work so far includes:

  • 11 interviews with Uniswap stakeholders, including investors like a16z and VanEck
  • Analysis of 8 DAOs with existing treasury management activities, including Arbitrum, MakerDAO, and GnosisDAO*
  • Examination of thousands of onchain data points specific to the Uniswap ecosystem

*The full list of interviewees will be included in the acknowledgements section of the final report

During Uniswap’s GovSwap event in Brussels, our team shared insights into the UTWG’s work with Uniswap delegates and stakeholders. Below we are sharing an interim update that provides visibility into some of the topics that our team is exploring:

[Interim Update] Mobilizing a DAO’s Treasury - An exploration by StableLab, karpatkey, FranklinDAO & Arana Digital

What do we still need to complete?

  • Present possible native token diversification solutions and sustainable growth strategies
  • Finalize conducting interviews with leading DAOs, Treasury Managers, and relevant industry players
  • Present a suggested long-term roadmap and effective execution strategy

The UTWG’s research will take a few weeks longer than expected due to scheduling difficulties for interviews and leeway for team travel (like EthCC). Additionally, interviewees have requested involvement in the peer review process to ensure accurate representation of their quotations and opinions. We are allowing a 2-week period for this review before publishing the final document on the forums. This extended research timeline will not incur any additional costs to the DAO.

How can you contribute?

Our team has prepared two questionnaires that ask Uniswap stakeholders to rate their perspective on various factors that influence how the utilization of the treasury is to be approached. The first survey is for all relevant stakeholders–the second survey is exclusively for treasury/asset managers.

If you are a delegate, token holder, or general community member, please share your opinion using the following link (takes 3-4 minutes): Mobilizing a DAO’s Treasury - General Survey

If you are a treasury or asset manager, please share your opinion using the following link (takes 3-4 minutes): Mobilizing a DAO’s Treasury - for Treasury Managers

11 Likes

Thanks for the update, was actually waiting for it since last week. Looking forward to read the report.

2 Likes

Thanks for this clear update and the interim report. Curious to see growth strategies presented in the future report. Filled out the form and looking forward to seeing this research soon.

3 Likes

Figure 5 commentary fails to distinguish between lumpy line-item proposal-disbursement vs actual cashflow from UNI into fiat which are price-sensitive. Could it be reframed as non-convertible (eg delegate weight) and plot separately the conversion outflow? This should give a better sense of the time-horizon … ie how much should be kept in short-term cash-equivalents vs medium-term vs long-term investment “punts”.

Given that the budgeted spending usually requires conversion to fiat which effectively offsets any actual assets / investments then you can with different asset mixes, attempt to figure out a safe withdrawing threshold which then impacts the desired yield curve to accommodate spending.

Appreciate your engagement with the WG’s efforts. Correct–figure 5 simply lumps together all outflows, summing up both expenses and delegations. We express this distinction above figure 4:


Burn rate and runway analysis are indeed expense-based, which is separate from general outflows to any staking or Franchiser contracts. General outflows are important to include since they encapsulate the true utilization/productivity of the treasury.

1 Like