Bain Capital Crypto Leads $8 Million Investment in Aera’s Autonomous Treasury Management for DAOs

By 0xK2 10/27/23 12:03 AM

Aera, a trailblazing development in the realm of Decentralized Autonomous Organizations (DAOs), officially launched its highly anticipated autonomous treasury management protocol. The launch coincided with the successful conclusion of an $8 million token sale, led by the prominent Bain Capital Crypto.

Aera, conceived and executed by the team behind Gauntlet, seeks to redefine the way DAOs oversee their treasuries. The core innovation of the protocol lies in automating essential treasury management functions, allowing DAOs to establish long-term strategic goals and streamline routine maintenance activities, such as portfolio rebalancing. This automation, in turn, reduces the necessity for ongoing governance intervention, offering forward-looking DAOs the ability to embrace responsive, efficient, and sophisticated treasury management strategies.

With billions of dollars in assets held by DAO treasuries, the need for proactive asset management is paramount, particularly in the current bear market. To optimize their treasuries, DAOs are now tasked with employing effective strategies like risk-adjusted yield targeting, safeguarding funding capacity, enhancing the liquidity of their native tokens, and mitigating exposure to volatile assets.

Tarun Chitra, CEO, and co-founder of Gauntlet and the visionary behind the Aera protocol, emphasized the importance of streamlined treasury operations, stating, “In the last market cycle, DAOs with clear focus and sound operations emerged as the winners, and Aera was designed to facilitate precisely that.” He further underscored Aera’s ability to provide DAOs with advanced treasury management capabilities, all while maintaining decentralization, decision-making quality, and incentive alignment.

Aera’s approach hinges on the utilization of noncustodial designated accounts known as “vaults.” These vaults enable each DAO to securely deposit token reserves, including stablecoins, native tokens, and other on-chain assets, safeguarding individual control and flexibility while mitigating the risks of co-mingling or misattribution of ownership.

Key elements of Aera’s treasury management solution encompass:

Strategic Target Selection: DAOs can choose from a range of strategic targets for their treasuries, such as risk management through volatility targeting, bolstering liquidity, generating yields from idle holdings, and diversifying their treasury assets.
Continuous Rebalancing: Aera’s protocol autonomously rebalances vault assets to adhere to these targets, eliminating the need for recurrent governance decisions.
Asset Allow-Listing: This feature ensures that treasury assets are exposed only to pre-approved forms of risk.
Transparent Reporting: Real-time access to investment performance data through on-chain reporting dashboards.
Noncustodial Design: Importantly, there are no lockups, allowing DAOs to retain full control of their assets and withdraw at any time without incurring penalties.

Stefan Cohen, a partner at Bain Capital Crypto, lauded Aera as a long-overdue solution for crypto-native organizations seeking responsible treasury management. He emphasized that Aera signals the ushering in of a new era in responsible decentralized finance growth.

Currently, Aera manages the treasury assets of numerous protocols and institutions, totaling more than $4.3 million. The protocol is now accessible to all DAOs, protocols, and crypto-native institutions searching for a transparent on-chain treasury management solution.

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