How Can a DAO Treasury Hedge against Market Volatility Using Options?

A DAO treasury can hedge against volatility by buying put options on its non-native assets like ETH or BTC. A put option gives the right, but not the obligation, to sell the asset at a predetermined strike price, thus establishing a floor for the asset's value.

Alternatively, they can use zero-cost collars by simultaneously buying a put and selling a call. This strategy protects the treasury's downside while limiting upside potential.