> For the complete documentation index, see [llms.txt](https://cron-finance.gitbook.io/twamm/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://cron-finance.gitbook.io/twamm/use-cases/treasury-managers.md).

# Treasury Managers

Treasury management in DeFi is a burgeoning space given the number of tokens that are part of the treasury and need to be managed properly. Although these managers do excellent work on risk and reward analysis on treasury asset allocation, they don't have advanced on-chain execution engines to complete the trades.

{% embed url="<https://twitter.com/aerafinance/status/1580208145262993409>" %}

### Why TWAMMs are better?

Treasury managers are DeFi-native organizations that are comfortable interacting with smart contracts. Some of these teams have even implemented products that leverage existing technologies.&#x20;

However, as explained in the [`Open Market Operations`](https://docs.cronfi.com/twamm/use-cases/open-market-operations) section, these tools lack flexibility, gas optimizations, and MEV resistance.

The below MakerDAO example is as simple as executing:`Sell $3.5B ETH <> USDC in 90 days (648000 blocks).`That trade would sell roughly $5400 of ETH per block or roughly 3.3 ETH @ $1600 ETH/USDC.&#x20;

{% embed url="<https://twitter.com/bantg/status/1557742913924186117?s=20>" %}

This trade is so big that it can't be executed on-chain without causing havoc across the entire DeFi system because of the price dumping drastically and the second-order effects on other protocols.&#x20;

{% hint style="info" %}
TWAMMs help increases the anti-fragility of blockchains.
{% endhint %}

{% embed url="<https://twitter.com/VitalikButerin/status/1557746114526314501>" %}

TWAP buying and selling large orders is a tried and old strategy. TWAMM is the next evolution of the strategy that happens on-chain and is aware of the limitations of blockchains like gas, MEV, and liquidity.

{% embed url="<https://twitter.com/avsa/status/1620776616959041537>" %}

Additionally, the TWAP tools on the market depend on keepers and external inputs that make them execute discretely and non-automated. This is not an ideal solution for DAOs and protocols that want to have an automated system with zero maintenance.&#x20;

{% embed url="<https://twitter.com/nicksdjohnson/status/1595866753288265729>" %}

### Who's the target customer?

{% embed url="<https://llama.xyz/>" %}

{% embed url="<https://www.karpatkey.com/>" %}

{% embed url="<https://www.aera.finance/>" %}

### Example Proposals

#### Llama

* Aave Treasury Diversification:<https://governance.aave.com/t/aave-initial-treasury-strategy/5602/6>
* Aave Treasury Managment:<https://governance.aave.com/t/the-aave-treasury-management-vision/5157/3>
* Gitcoin Treasury Diversification: <https://gov.gitcoin.co/t/gitcoin-treasury-diversification/9698>
* Nouns DAO Treasury Report: <https://llama.mirror.xyz/cXx3ed66iXem3yRfTeImIi72RHesHvqXlXsaq-VX9RU>

#### Karpatkey

* Gnosis DAO Treasury Management: <https://forum.gnosis.io/t/gip-20-karpatkey-dao-treasury-management/2233>
* ENS DAO Endaoment: <https://discuss.ens.domains/t/endowment-initiation/15952>
* Balancer Treasury Management: <https://forum.balancer.fi/t/bip-162-karpatkey-investment-strategy/4220>
* CowSwap: <https://forum.cow.fi/t/cip-19-karpatkey-dao-proposal-to-create-a-core-treasury-team/1279>