#ETHTreasuryStrategy
An ETH Treasury Strategy refers to how an organization, DAO, project, or even an individual manages Ethereum (ETH) holdings in their treasury to balance growth, risk, and liquidity needs.
Key elements typically include:
1. Allocation & Diversification
Decide what % of the treasury should stay in ETH vs. stablecoins or other assets.
Reduces volatility risk while keeping upside potential.
2. Yield Generation
Staking ETH to earn staking rewards (e.g., via Lido, Rocket Pool, or native validator setup).
Deploying ETH into DeFi protocols for lending, liquidity provision, or low-risk yield farming.
3. Risk Management
Hedging strategies (using futures or options) to protect against major price drops.
Maintaining emergency reserves in stablecoins for operational needs.
4. Growth & Deployment
Funding ecosystem development, partnerships, or R&D from ETH gains.
Timing sales of ETH to avoid market pressure while securing funds for expenses.
5. Governance & Transparency (for DAOs/projects)
Clear rules for treasury spending and rebalancing.
On-chain reporting so the community can track funds.
📌 Example Strategy:
60% staked ETH for long-term growth.
25% stablecoins for expenses.
15% ETH in liquid DeFi for opportunistic investments