What Are the Most Common Automated Strategies for Yield Farming a DAO’s Treasury Assets?
The most common strategies involve supplying assets to decentralized lending protocols to earn interest or providing liquidity to automated market makers (AMMs) to earn trading fees. DAOs often use yield aggregators (e.g.
Yearn Finance) that automatically move funds between different protocols to maximize returns. Another strategy is liquid staking, where assets like ETH are staked to secure the network while receiving a liquid staking token that can be used in other DeFi applications to generate additional yield, compounding returns for the treasury.