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What Is “Protocol Owned Liquidity” (POL) and Why Is It Important for a DAO Treasury?

Liquidity assets owned by the DAO, ensuring permanent market depth, reducing rental costs, and increasing protocol stability.
Greeks.Live15.11.25

What Is “Protocol Owned Liquidity” (POL) and Why Is It Important for a DAO Treasury?

Protocol Owned Liquidity (POL) refers to the liquidity pool assets that are owned and controlled directly by the DAO's treasury, rather than rented from users. This is important because it reduces reliance on temporary liquidity providers, leading to greater stability and less slippage for token trading.

By owning the liquidity, the DAO can ensure a permanent market for its native token and capture the trading fees generated by that pool. It is a key strategy for long-term decentralization.

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