Most DAO Treasuries are keen to diversify their Treasuries away from their native tokens towards increased exposure to ETH, ideally yield-bearing staked ETH, but with the safety associated with a Treasury core holding. Diversified, automated, insured, composable baskets of LSDs optimised for both intrinsic AND extrinsic yield harvesting are ideal products for DAO Treasuries looking to diversify away from their native tokens towards yield-bearing staked ETH with acceptable levels of protection from slashing and smart contract risk.
Prior to launching $LSDETH, we will be polling selected DAO Treasuries in a ‘book-building’ exercise to determine which of them are willing to act as prime minters using their ETH and LSDs to mint the initial basket. Most medium and small scale DAOs will eventually be looking to outsource management of the $LSD part of their portfolio. DAOs minting and redeeming via the PowerPool UI will pay no minting/redemption fees.
Some very large DAOs may initially prefer to ‘roll their own’ multi-LSD portfolios to seemingly optimise yields net of fees and smart contract risk. However, in many cases, the level of contract integration required to spread both contract risk (across LSPs) and extrinsic yield options will be such that even large DAOs will be tempted to ‘out-source’ management of the LSD portfolio to PowerPool. This is especially true for multi-chain, multi-layers LSD portfolios. Duplicating the composability of blended $LSDxxx baskets will be very difficult to justify for an individual DAO.
The PowerAgent (multi-chain) diversified yield harvesting, combined with the automated slashing re-insurance wrapper capabilites of PowerSyndicate backing the Safety Fund, and live reporting/monitoring dashboards featuring Methodologist operational fundamental data feeds/dashboards will be key factors in pursuading the larger DAO Treasuries that they really have better things to do than ‘roll their own’. Their internal development efforts/capacity have a high opportunity cost, and for the majority of DAOs, automated portfolio management is not a core activity.