Skip to main content

Can a DAO Treasury Provide Liquidity with Its Own Tokens?

Yes, a DAO treasury can and often does provide liquidity with its own native tokens, usually paired with a major asset like ETH or a stablecoin. This is a crucial step in establishing Protocol-Owned Liquidity (POL).

By providing liquidity, the DAO ensures market depth and earns trading fees, which contributes directly to the treasury's revenue stream.

How Does the Tokenomics of a Native Token Affect Its Treasury’s Risk Profile?
How Does a ‘Protocol Owned Liquidity’ (POL) Model Benefit Treasury Health?
How Do Liquidity Providers (LPs) in a DEX Earn Fees?
What Is the Role of a ‘Liquidity Pool’ in a DAO’s Initial Capital Formation?