A New Treasury Scheme Investors Must Look Into PlatoAiStream PlatoAiStream. Data Intelligence. Vertical Search. Ai.

A New Treasury Scheme Investors Must Look Into

A New Treasury Scheme Investors Must Look Into PlatoAiStream PlatoAiStream. Data Intelligence. Vertical Search. Ai.
  • Aggregated Finance (AGFI) is using a multi-wallet approach for their treasury holdings.
  • The platform’s ultimate purpose is to increase the treasury.
  • It also aims to offer investors the power to vote on what to do with revenues via the AGFI DAO.

Treasuries have a range of purposes to serve, including rewarding contributors, covering operational expenditures, and ensuring healthy growth in a fluctuating market, among other things. Similarly, safeguarding the treasury is also critical since it houses the funds of the users. However, there have been several hurdles in order for them to be sustained in the long run. Continuous liquidations or cyberattacks have been depleting treasuries.

Moreover, participation in DeFi for asset allocation is still largely underutilized for the great majority of protocol and DAO treasuries, resulting in a big wasted opportunity for growth. Further, as the DeFi protocol is advancing at a breakneck pace, treasury management is emerging as a critical issue that must be addressed.

And, in order to maintain this pace, Aggregated Finance (AGFI) is working hard to keep up with rapid innovations thus making treasury management easier. The platform is taking a new approach by leveraging the best talents and technology from the DeFi sector. With the implementation of a DAO, AGFI is building a robust system to govern and protect the treasury. They are taking a new approach of Multi-sig to safeguard treasury funds.

Mechanism of AGFI’s Treasury

Aggregated Finance is using a multi-wallet approach for their treasury holdings in order to maintain top-notch security. The platform’s treasury is designed in a way where it receives 5% of the amount sold when someone sells AGFI. Moreover, as part of its diversification strategy, AGFI is investing in different DeFi avenues including yield farms, low-risk tokens, and high-risk tokens. Beyond that, they are also investing across various blockchains including Ethereum, Avalanche, Fantom, and Binance Smart Chain.

With all of these diverse strategies, AGFI has managed to retain a total treasury sum of roughly $550,000-$600,000 across two of their treasury wallets, which also includes some staked monies in their marketing wallet. The platform’s ultimate purpose is to increase the treasury and offer investors the power to vote on what to do with the revenues via the AGFI DAO.

And, in order to achieve this aim of growing treasury, AGFI has used a variety of ways, including buybacks, increasing liquidity, compounding, investing in other tokens, paying back to their holders in the form of reflections, and much more. Even though the focus is on building the treasury, AGFI is also maintaining stability by investing the majority of their tokens in less volatile farms and investments, while only having a tiny fraction of their investments in more time-sensitive and volatile assets.

AGFI’s Treasury Allocation Strategies

Aggregated Finance is taking a prudent approach to allocating its treasury to ensure long-term viability. It has more than $81,000 divided in $ETH, $MCC, $REFI, $ABC, $OKLG and $AVAX. Furthermore, to maintain a balance between risky and risk-averse assets, AGFI is also farming $61,000 worth of stablecoins on Reaper Farm and $43,000 worth of stablecoins on Yearn V2, totaling 5-10% APR.

Additionally, they have positions in $LQDR and are farming it on Beethovenx, generating $BEETS at less than 100% APR. Similarly, another position is also live on the Binance Smart Chain on The Animal Farm, which has about $200m TVL in it. Further, they have made an investment of $10,000 in BUSD, yielding approximately 200% APY. They have also purchased $5,000 worth $DOGS, which is producing a 300% APY, and have plans to DCA another $5,000, taking the total to $10,000.

Building a Long-Term Sustainable Treasury Model

Treasury management and allocation are hard challenges for DeFi protocols since the risk of losing money is generally present. Moreover, growing the treasury is a much more difficult undertaking since it includes complex strategies that need channeling funds into multiple protocols, all of which add to the existing risks. However, Aggregated Finance is solving all of these challenges with its unique approach.

The platform’s strategy of onboarding professional yield farmers and strategically allocating the treasury funds is an innovative solution that can be a game-changer for the platform as well as the other protocols. It is leading the way for DeFi 3.0 with its decentralized investment approach. The platform’s inclusion in the DeFi 3.0 alliance is a step toward the future of DeFi, and the transformation has already begun with its innovative treasury management system.

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