Treasury and Investments
Because of the goal to achieve High Yield, Low Risk, the Treasury will spread its investments over several different chains and protocols to create a diversified, yielding treasury.
Therefore, the only way to achieve this, is manually investing with the use of a multi-sig wallet.
This Multi-Sig wallet is owned by the ButterFinance Team. We are executing and overseeing all actions and investments for the collective decisions made by the community.
The ButterFinance Team understands the amount of trust that investors have to bring to the table for this. That is why transparency and quality of our actions are our main focus. We are fully doxxed as a team and all actions will be traceable on-chain and recorded on the website.
The treasury is supposed to grow in value over time, not only to support, but to raise token value and ultimately yields for users. Therefore, before paying out earning to stakers, a portion of the the rewards is compounded back into the investments as principal. The rest is to be paid out through the staking contract.
At the beginning, we set the compound to 25%, the pay-outs to 55%. This way we do compound a good amount to grow the treasury, but raise the APR of the staking contract as well.
55% of Yields are paid out.
25% of Yields are compounded.
20% of Yields are going to ButterFinance for Development and Marketing.
This is also variable and can be changed through proposals.
This setup ensures an ever growing and sustainable treasury. The treasury value will be volatile. But in terms of tokens, the treasury holdings will increase by compounding part of the yield back to the investments, owned by the treasury.
This ultimately increases floor price of the token and yields consistently and continuously.
While the coin launch (the first 365 days after TGE) is active, the compound will be set to 80% to grow the treasury faster.
When maximum token supply is reached, the treasury will be starting to pay out yields in the aforementioned manner.
The treasury's investments will be mainly focused on the leading DEX/AMMs tokens of a variety of Blockchains.
This includes tokens, such as $UNI, $SUSHI, $VVS, $QUICK, $CAKE, $BANANA, $BSW, $CRONA, $JOE, $BOO, etc. (list is not comprehensive).
DEX/AMMs are the backbone of Decentralised Finance and they are not going anywhere. These projects have proven they are long-term sustainable and keep innovating on a daily basis. Additionally they are the few reliable sources of reliable yield farming opportunities.
Therefore, the treasury will invest in such tokens and provide liquidity in their main trading pairs as well as make use of the respective yield farms to increase profits further.
Additionally, the treasury will stake part of the owned tokens in ButterFinance's ButterVaults, which have already proven to be yielding reliably and consistent returns.