UMA's Range Token Allows DAOs to Diversify Their Treasures

UMA introduced the Range token, a treasury primitive that allows DAOs to access funds and diversify their treasury without selling their original tokens. Instead, DAOs can use their native tokens as collateral without the risk of liquidation. A liquidity issue DAOs have become increasingly important with some DAO treasuries worth billions. However, one thing to note is that these assets are kept as local tokens for a particular project. Only a part of it is kept as fixed money or cash. It's okay to only have the local token of the project during a bull market. However, it can happen during a bear market. The recent sell-off, where the ETH/USD price fell 50% and the DAO's valuation plummeted, are a good example of what can happen in a bull market. The Answer Is Diversification There is a growing need for DAOs to diversify their vaults to ensure their operations are well funded and their protocols are on the right track to achieve their goals. The challenge facing DAO's DeFi projects is that they currently have no reliable way to access funding, and that is the sale of their own tokens. Compare that to traditional financing and many other options such as bonds, direct loans and equity loans. Each instrument in traditional finance has its own specific purpose, which is to raise funds in different ways. Despite restrictions and qualifying programs, DAOs need funds to cover costs and compensate their teams. DAOs need the security of funds to drive the volatility of crypto markets while minimizing the impact on their tokens post-disposal. Range Token gives DAOs the option to diversify their vaults and overcome some of the challenges outlined above. Range Token A Range Token is comparable to convertible bonds, allowing companies to raise financing without up-front capital. Through the Range Token, DAOs can use their local tokens as collateral and raise funds. If it can't be a crime

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