What Mechanisms Do DAOs Use to Diversify Their Treasury Assets?

DAOs diversify their treasury assets to reduce volatility and ensure long-term stability. A common mechanism is to use a portion of their native governance tokens to acquire more stable assets like stablecoins (USDC, DAI) or major cryptocurrencies (BTC, ETH) through decentralized exchanges.

Some DAOs also invest in tokenized real-world assets or participate in yield farming and liquidity providing to generate a steady return. These decisions are typically proposed and voted on by the community, using treasury management tools and platforms to execute the diversification strategy.