🔙Buybacks

Continue a deep dive 🤿 on interesting use cases for TWAMM, we'll focus on DAO treasury management tools for buybacks 💰. This is a point of interest given how large some of the DeFi treasuries have become: https://openorgs.info.

There are two types of buybacks: buy + build/make & buy + burn. We'll focus 🔬 on buy + build using a smart treasury to automate 🤖 buybacks as discussed by @jmonegro in this article: https://placeholder.vc/blog/2020/9/17/stop-burning-tokens-buyback-and-make-instead

Let's break down the pros & cons of using @BalancerLabs smart pools for buybacks.

• ✅ Automation of buying assets 、

• ✅ Customizable pool ratios

• ✅ Built-in DEX features

• ⛔️ Only for future revenues

• ⛔️ Happens at uncontrolled intervals

• ⛔️ Gas costs for rebalancing

Other standard ways of performing buybacks include using DEX aggregators at set intervals -- slippage 📈, manually executing 🏗️monthly buys.

And of course, just trusting a CEX for smarter execution -- needs KYC, centralized, & custodial.

With TWAMM, a DAO treasury would just simply put in a buy order with the amount and number of blocks to execute the order in period time 🎯. It's more gas efficient ⛽️, happens at a regular interval, is trustless & non-custodial, and can be canceled on demand.

Here are a few DAOs performing buybacks & the mechanisms they use:

YearnFinance - @iearnfinance: https://twitter.com/iearnfinance/status/1486450959723155474

CowSwap - @MIM_Spell: https://twitter.com/0xM3rlin/status/1487028438724718595

Alameda - @feiprotocol: https://tribe.fei.money/t/fip-37-fei-v2-tribe-buybacks

Balancer LBP - @indexcoop: https://gov.indexcoop.com/t/adopt-a-smart-treasury/726

With more money & investment clubs coming on-chain thanks to tools like @SyndicateDAO, we envision a flexible & efficient TWAMM style DEX will be an absolutely critical DeFi lego to help facilitate large trades in a trustless & decentralized manner.