Foundations & DAOs

A foundation’s treasury is at the core of its business and is typically deployed across several protocols to earn yield. It sits at a public address, so the balance, the allocations and any losses are visible to the community it serves. Treasuries have been drained through both the protocols they deposit into and the governance that controls them. Beanstalk lost about $77 million in April 2022 when a $1 billion flash loan bought a governance supermajority and passed a malicious proposal in one transaction. Tornado Cash had its governance seized in May 2023 through a hidden proposal. Treasuries deposited in Euler Finance and holding balances on FTX took losses in the same period, and Nexus Mutual paid over $7 million to cover holders in those two events.