Introducing Thetanuts’ Approach in DAO Treasury Management

Thetanuts Finance
4 min readMar 2, 2022


Thetanuts Finance helps DAOs achieve their treasury management goals by customizing different structured product strategies for them.

As new DAOs continue to emerge and have an increasingly influential role within the world of blockchain, one of their biggest challenges continues to be treasury management. Finances are key to how DAOs operate, but so far, there are still several issues that need to be solved.

The first is the limited options available for DAOs to generate yield. Currently, DAOs can generate yield through lending protocols, which is significantly lower than the yield generated through structured products. The second issue is that DAOs lack the ability to diversify their treasury holdings. Their main option is to sell their tokens on the open market from the team’s allocation, which causes the team to look like they are dumping their tokens, which may wrongly signal a lack of confidence among their token holders. The third issue is DAOs do not have an easy solution to expand their options market, which is a strategic way to improve token liquidity and trading volume.

Thetanuts Finance will solve these issues by offering customized DAO treasury management strategies based on our structured product protocol. Our structured products behave like staking contracts, locking up liquidity in return for yield, and reducing sell pressure.

Why Thetanuts and Its Structured Products Are Best Suited for DAOs

Thetanuts believes that DAOs should be able to decide on the products that best achieve their objectives. Existing structured product solutions allow DAOs to customize basic metrics like strike prices and tenors.

While these are useful, Thetanuts Finance offers more layers of customization that are not available on existing structured product protocols. We specifically offer both cash-settled vaults as well as physically-settled vaults. Through a physical settled vault, DAOs can sell their tokens for a stable currency of their choosing if the option is exercised. If the option is not exercised, the DAO can generate consistent yield based on their own risk tolerance. All DAOs, apart from owning their native token, need a portfolio of tokens for a variety of reasons like team compensation or for deploying elsewhere to diversify the source of yields.

In essence, Thetanuts enables DAOs to better achieve their treasury goals. Whether it is earning more yield on their tokens or diversifying their treasury portfolio, Thetanuts is able to customize the variables (strike price, delta, and tenors) of the options, types of settlement, and options strategies. Apart from reaching treasury goals, helping DAOs expand their options market is a way for projects to have a large amount of liquidity injected — this will attract competitive bids from market makers, leading to higher trading volume and better overall liquidity.

Thetanuts’ Core Philosophy for DAOs

Thetanuts believes strongly in providing DAOs the ability to customize vaults based on their treasury management needs. With this in mind, we are continually working to develop new types of vaults, with multiple levels of customization, to further support the different types of DAOs we work with and their various treasury management goals. As our platform grows, and we partner with more DAOs, we will be releasing more customization options, as well as vault types to meet the increasingly varying needs of the DAOs we work with.

Our mission is to help DAOs earn yield, and as such, we do not take any fees for the services we provide them.

How Thetanuts’ Partnerships with DAOs Work

  1. Thetanuts works with DAOs on their treasury management objectives.
  2. DAOs will make proposals to their community. Thetanuts will then deploy vaults based on the mandate to facilitate the process of option selling and the collection of premiums from market makers.
  3. Both the DAO and its token holders can deposit their assets into the vault to generate yield on their tokens

About Thetanuts Finance

Thetanuts Finance’s DeFi structured products and its customizable vaults are the future of generating yield. The platform is designed to provide treasury management for DAOs, as well as help retail traders earn yield on their tokens. Thetanuts’ vaults simplify the process of options trading, making previously complex instruments easy for any investor to access and ready to match each individual’s own investment outlook. Launched in August 2021, Thetanuts is founded by a team of programmers, hedge fund managers, and financial analysts who specialize in building financial crypto products. Our notable investors include Deribit, 3AC, Jump Crypto, and QCP Capital.

Follow Thetanuts Finance for our latest updates and announcements:

Website | Twitter | Discord | Research



Thetanuts Finance

Thetanuts Finance is building a decentralised on-chain options protocol focused on altcoin options 🥜❓