The DAO has full control over the funds held by the treasury and how they are spent. Treasury funds can be spent for:
- Investing in tokens,
- Providing liquidity for trading on exchanges,
- Other expenses approved by the DAO.
The treasury holds and tracks all of MetFi DAOs funds. It currently holds and tracks:
- MFI tokens
- BUSD tokens
- LP tokens for the PancakeSwap MFI/BUSD liquidity pool
If the treasury wishes to add new tokens e.g. BNB it needs to deploy a treasury extender smart contract for the new token.
Handling MFI tokens
The treasury can mint MFI tokens:
- To pay a rebase APY for staked tokens,
- When a purchaser mints an NFT or buys MFI tokens on the MetFi platform and the treasury doesn’t buy the MFI tokens from the liquidity provider (currently PancakeSwap) but rather mints them in exchange for the purchaser BUSD. The received BUSD goes to the treasury,
- To provide additional liquidity to the liquidity provider.
These are the only 3 scenarios for minting MFI tokens.
All MFI tokens that enter the treasury are immediately burned for the following reasons:
- Fewer tokens to be stolen in the event of a hacking event,
- Treasury has a more accurate valuation,
- MFI tokens have a more accurate valuation.
Burning MFI tokens will occur:
- When an NFT holder unstakes their NFT tokens 10% of their MFI tokens are sent to the treasury and burned,
- At token buybacks from the liquidity provider,
- When liquidity is removed from the liquidity provider,
- When the DAO demands it.
The treasury also holds the first position in all 10 matrixes as well as all the staked MFI tokens in the NFT #10 Humpback (at the time of writing 126,288 MFI). These tokens can only be burned when the DAO demands them to be burned.
MFI Trading Liquidity
The treasury has control over liquidity it provides on the DEXs. If the treasury has locked some or all of this liquidity it is bound by the parameters of the smart contract that the liquidity is locked in. The treasury can provide additional liquidity or remove excess liquidity up to the number of available MFI tokens. Adding or removing liquidity is always bound by the LP pair e.g. MFI/BUSD.