Introduction

Cosmos DAO Treasury Model: A Refined Overview

The Cosmos DAO Treasury is a cornerstone of the Cosmos protocol, serving as a decentralized financial hub that manages and optimizes protocol-owned assets, including $COS tokens, stablecoins, and other cryptocurrencies. Designed to ensure stability, transparency, and growth, the Treasury empowers $COS token holders to make democratic decisions on fund allocation, investments, and stability measures through an on-chain voting mechanism. The Cosmos Treasury model focuses on maintaining the value of the $COS token, supporting ecosystem development, and generating sustainable revenue within the DeFi 3.0 ecosystem.

Core Functions and Responsibilities

The Treasury holds and manages all protocol-owned assets, prioritizing the provision of $COS liquidity in open markets and stabilizing its value through direct market operations in specific scenarios. Additionally, through DAO governance, it enables the operation of assets within a hybrid DeFi system, referred to as Hybrid DeFi, to generate revenue, which can be distributed among DAOs. The Treasury comprises:

• Reserve Assets: Provide a stable foundation for treasury operations.

• Liquidity Positions: $COS liquidity pools and other assets to support market stability and protocol functionality.

• DAO Governance Operations: Through on-chain governance, DAO members can operate assets in a Hybrid DeFi system, generating revenue and enabling profit distribution among DAOs.

The Treasury adopts a streamlined management strategy, utilizing the Range Bound Stability (RBS) mechanism to enhance operational efficiency. Access to additional modules in the future can also be granted via on-chain governance.

Key Features

• Asset Pooling: Aggregates staked $COS, liquidity provider (LP) tokens, and stablecoins to build a diverse and resilient asset base.

• Price Stability: Utilizes automated supply adjustments (rebasing) to maintain $COS at a stable value of 1 USD.

• Revenue Generation: Leverages staking, lending, strategic partnerships, and Hybrid DeFi system operations to generate sustainable revenue and support profit distribution among DAOs.

• Transparency: Ensures all transactions and governance decisions are immutably recorded on the blockchain, fostering trust and accountability.

Strategic Vision

The Cosmos DAO Treasury balances stability and innovation, enabling community-driven governance while leveraging Hybrid DeFi systems to generate and distribute revenue among DAOs. By integrating DeFi protocols and Hybrid DeFi operations, the Treasury not only safeguards the protocol’s financial health but also unlocks new opportunities in decentralized finance, positioning Cosmos as a leader in the DeFi 3.0 landscape.