DAO Funds

DAO Treasury of SOLTOMB Finance serves as a critical financial instrument, managed by the developers to ensure stability and growth of the protocol. The treasury engages in strategic buybacks and holds reserves that are pivotal in maintaining the peg of the $STOMB token.

Key Functions of the TOMB Finance DAO:

• Peg Maintenance: As a vital line of defense, the DAO fund supports the peg of $STOMB through market interventions. When the $STOMB TWAP (Time Weighted Average Price) is below 1, the DAO initiates buybacks to stabilize and elevate the token price. These operations are discreetly conducted to avoid potential market manipulation and are publicly disclosed post-action to ensure transparency.

• Market Corrections: Conversely, when the $STOMB TWAP is significantly above 1, the DAO may sell $STOMB to moderate the price, realigning it closer to the peg. This strategy also refill the treasury, preparing it for future buybacks.

• Asset Diversification: The treasury holds a diverse portfolio of assets, managed under the discretion of the core team. This diversification helps mitigate risks and ensures the robustness of the financial strategy.

• Investment and Yield Generation: With a strategic approach to asset management, the DAO may invest in safe and vetted projects to generate yield. These investments are aimed at growing the treasury's capital, enhancing its capacity to support the $STOMB ecosystem.

Governance Transition: Initially controlled by the developers, the DAO is designed to transition towards a decentralized governance model. This will empower $SSHARE holders to vote on key financial decisions, including the utilization of funds for investments, marketing, and other strategic areas.

Transparency and Records: All transactions made by the DAO are meticulously recorded and made available to the public. This ensures a high level of transparency and builds trust within the community.

Future Enhancements: The governance model and operational strategies may evolve as the project grows and adaplates to new challenges and opportunities within the DeFi ecosystem.