Aera creates vaults for DAOs on Polygon to manage their treasuries

Quick Take

  • Aera has launched autonomous, non-custodial vaults for Polygon-based DAOs to manage their treasuries.
  • The treasury management protocol says it expects DAOs on other networks to migrate to Polygon following its vault launch.

Aera, a treasury management protocol, has announced the launch of treasury optimizing vaults for decentralized autonomous organizations (DAOs) on Polygon. Aera says its goal is to enable crypto projects to manage their token reserves in a more efficient manner.

The current bear market has made treasury management a major concern for DAOs. Their treasuries have declined significantly over the past year, falling from $13 billion to $11 billion, according to DeepDAO. During the summer, they even fell as low as $8 billion. There are a few reasons for this decline which include the undiversified nature of their treasuries, slow governance procedures, and the lack of adequate DAO management tools.

Aera says it wants to solve the latter two problems, according to a statement. The goal is to make treasury-related governance more efficient by providing a tool for DAOs to manage their reserves. DAOs will be able to delegate the treasury management function to a small group of participants. These participants will use Aera’s vaults to manage the reserves of their projects.

DAOs can deploy Aera’s vaults by depositing their treasury tokens into the vaults. They can then assign vault guardians and arbitrageurs from among the small group of participants appointed to manage their reserves. Vault guardians are responsible for setting asset allocation parameters within the vault, while arbitrageurs trade with the assets in the vaults to meet the targets set by the vault guardians. The end goal is to ensure asset optimization for DAO treasury assets.

Aera’s launch partner vaults are restricted to Polygon. The project stated that it expects to see DAO treasuries on other networks instantiate vaults on Polygon to use its services.

Update: This article has been updated to clarify that Aera's launch partner vaults are restricted to Polygon.

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