How Can a Financial Derivative Be Used to Hedge against a DAO’s Treasury Risk?
A DAO can use derivatives to hedge the price risk of its native or held assets. For example, if a DAO holds a large amount of Ether, it can sell Ether futures contracts or buy put options on Ether.
If the price of Ether falls, the profit from the derivative position offsets the loss in the treasury's value, preserving capital.
