What Are the Common Risks a DAO Treasury Working Group Must Mitigate?

The group must mitigate risks like impermanent loss from liquidity provision, smart contract vulnerabilities, and market volatility impacting asset values. Concentration risk, where the treasury holds too much of its own native token, is also critical.

They must also manage regulatory uncertainty and the risk of governance attacks or exploits. Diversification is the key strategy for managing these exposures.