DAO Tokens for Treasury Management and DAO Tokens for Treasury Yield Strategies Using DeFi

A practical playbook for using DAO tokens and modern DeFi rails to secure, govern, and grow onchain treasuries—backed by current implementations, concrete configuration tips, and risk controls that institutional teams expect.

In this guide, we show decision‑makers how leading DAOs wire up Safe-based controls, onchain governance, tokenized T‑bill rails, staking/restaking yield, and streaming disbursements to run a treasury like an enterprise-grade balance sheet.

Why this matters now

Tokenized T‑bill funds (BUIDL, WTGXX, BENJI/FOBXX, OUSG) moved from pilots to production collateral and multichain access in 2024–2025—becoming “cash equivalents” for onchain treasuries with daily yield accrual and KYC’d holder lists. BlackRock’s BUIDL crossed $1B AUM in March 2025 and later expanded beyond Ethereum; Binance added BUIDL as institutional collateral. (coindesk.com)
Restaking and liquid restaking tokens (LRTs) matured: EigenLayer shipped mainnet slashing in April 2025, addressing a major risk blocker; Ether.fi, Renzo, and Kelp DAO became mainstream “yield layers” for ETH treasuries. (coindesk.com)
Some yield primitives changed status: Mountain Protocol’s USDM began an orderly wind‑down in 2025; smart treasurers exited or swapped to USDC/T‑bill funds. (docs.mountainprotocol.com)
Governance tooling modernized: Safe roles/spending limits, Zodiac modules, and OpenZeppelin Governor v5.x + Timelock became the standard baseline. OpenZeppelin also announced a 2026 sunset of Defender’s hosted service, prompting migration planning. (docs.roles.gnosisguild.org)

Part 1 — DAO tokens as the control plane for treasury management

Think of your DAO token not just as voting power, but as the policy key that selects and supervises modules which actually move money. The current enterprise-grade pattern looks like this:

1) Safe{Wallet} as the onchain operating account

Structure: a primary Safe per legal entity/sub‑DAO, plus network‑specific Safes for deployment chains.
Critical controls to enable on day one:
- Spending Limits module (Allowance): give specific bots/ops wallets a daily USDC or ETH limit for routine spend without pinging all signers. Configure per‑token, per‑period caps. (help.safe.global)
- Zodiac Roles Modifier: granular, role‑based permissions that restrict which contracts/functions/params an address can call. Useful for “treasury‑manager” roles that can deploy into allow‑listed DeFi venues with caps and rate limits. (docs.roles.gnosisguild.org)
- Timelocks on dangerous actions: add Zodiac Delay on modules and/or use OZ TimelockController if governance executes from a Governor; use 48–96 hour delays for “can’t‑rush” ops. (docs.openzeppelin.com)
- “Policy as code” visibility: Safe Shield shows clear transaction risk signals and lets you add transaction guards that auto‑block non‑compliant actions. (safe.global)

Implementation notes your ops team will appreciate:

Enforce repeatable workflows: set per‑role rate/threshold limits in Zodiac Roles (e.g., “Aave v3: supply USDC up to 2M; borrow up to 500k; only against wstETH collateral; forbid permit2 calls”). Version control your Roles SDK config alongside your infra repo. (docs.roles.gnosisguild.org)
Make room for agents: Safe’s Allowance module is the sanctioned way to let bots/AI agents pay invoices up to a limit; Safe provides a code example for enablement. (docs.safe.global)

2) Onchain governance that won’t surprise auditors

Use OpenZeppelin Governor v5.x with ERC20Votes/721Votes, dynamic quorum, and a TimelockController. Default parameters we see working for large DAOs: voting delay 1–2 days, voting period 5–7 days, timelock 48–96 hours, quorum 4–7% of supply. (docs.openzeppelin.com)
Plan for the Defender sunset in 2026: OpenZeppelin is open‑sourcing Relayer/Monitor and sunsetting hosted Defender on July 1, 2026. Migrate automation and timelock ops playbooks in 1H 2026. (blog.openzeppelin.com)

3) Streaming disbursements instead of lump sums

Grants/payroll/vesting: Sablier v2 streams are ERC‑721 NFTs, transferable and auditable; Lockup (vesting), Flow (indefinite payroll), and airdrops at scale with CSV/Merkle. Superfluid streams add automation (auto‑wrap, scheduling) for operational flows. (blog.sablier.com)
Practical pattern: pay service providers via Sablier or Superfluid, funded weekly by a Safe Allowance; revoke streams with timelock notice. This eliminates “surprise” treasury drains while giving recipients predictability. (help.safe.global)

4) Reporting, accounting, and audits

Adopt “onchain‑first” FP&A: external teams like Steakhouse/Karpatkey publish monthly program reports (e.g., Arbitrum’s STEP) with Dune dashboards; ENS endowment reports include net APY and ncAUM. Mirror that discipline. (forum.arbitrum.foundation)
Require Proof of Reserves/oracles for tokenized assets; use Chainlink PoR as circuit breakers to halt actions if backing deviates. (chain.link)

Part 2 — DAO tokens as the allocation lever: building yield ladders in DeFi

Below is a structure we deploy with treasuries from $10M–$2B. Adjust percentages to your risk tolerance.

Bucket A — Cash & runway (30–60%): tokenized T‑bills and regulated MMFs

Objectives: capital preservation, daily liquidity, 24/7 settlement for ops.

BlackRock BUIDL (tokenized USD Inst. Digital Liquidity Fund)
- Daily yield accrual, Securitize KYC, multichain share classes (Ethereum plus Aptos, Arbitrum, Avalanche, Optimism, Polygon; later BNB Chain); accepted as collateral by major venues. Treat as “cash equivalent” with whitelist constraints. (prnewswire.com)
Franklin Templeton BENJI/FOBXX (OnChain U.S. Government Money Fund)
- SEC‑registered 1940‑Act MMF; peer‑to‑peer transfers and USDC on‑/off‑ramp via Benji; AUM reported near $800M by late 2025. Suitable for institutions needing U.S. fund governance. (franklintempleton.com)
WisdomTree WTGXX (Government Money Market Digital Fund)
- 1940‑Act MMF with blockchain ledgering; integrated in ecosystem use (debit card spend, protocol collateral proposals). Useful for permissioned DeFi with KYC separation. (wisdomtree.com)
Ondo OUSG (institutional tokenized T‑bills)
- Qualified purchasers & accredited investors only; strict KYC and transfer restrictions; often used by treasuries that prefer manager diversification (OUSG invests across multiple managers, including BUIDL/FOBXX). (docs.ondo.finance)

Risk notes and 2025–2026 changes:

Confirm investor eligibility: BUIDL/WTGXX/FOBXX require KYC and often institutional status; OUSG requires both accredited investor and qualified purchaser—U.S. persons are restricted unless they qualify. Keep a whitelist registry per holder wallet. (docs.ondo.finance)
USDM wind‑down: if you ever held Mountain Protocol’s USDM, unwind exposure—it entered Phase 3 in Aug 2025 (Uniswap pool backing). (docs.mountainprotocol.com)

How to wire it:

Safe role “Cash Manager” can mint/redeem with providers (via their portals) or swap secondary markets; enforce limits and whitelisted routers only. Use Chainlink PoR + transaction guards to block transfers if reserve feeds fail. (chain.link)

Bucket B — Core crypto yield (20–40%): staking, restaking, and blue‑chip lending

Objectives: ETH beta plus conservative yield; composable collateral for other strategies.

ETH staking (baseline 3–4% APY; varies with fees/MEV)
- Treat 3% as a planning rate; actuals fluctuate with MEV and network activity. Diversify across native validators and liquid staking (wstETH, rETH, etc.). (theblock.co)
EigenLayer restaking + LRTs (incremental reward layer)
- As of April 17, 2025, EigenLayer shipped slashing on mainnet; AVSs must opt‑in. LRTs like Ether.fi (eETH/weETH), Renzo (ezETH), and Kelp (rsETH) amplify yield but add smart‑contract/operator risk; use capped allocations and liquidity checks. (coindesk.com)
Conservative lending rails (Aave v3, Morpho Blue)
- Aave v3 remains the blue chip; parameter updates by professional risk firms (Chaos Labs/Gauntlet) continuously right‑size LTV/caps; use isolation/e‑mode judiciously. (governance.aave.com)
- Morpho Blue lets you choose isolated markets/oracles/IRM; reviewed by multiple audits and formal verification; still requires oracle diligence and curator discipline. Prefer curated vaults with published risk disclosures. (docs.morpho.org)

Checklist:

Cap LRT exposure (e.g., ≤10% of total treasury) and prohibit leverage loops by policy.
Require oracle diversity for collateral markets (Chainlink primary; fallback with time‑weighted delays).
Approve only audited markets/IRM variants; review Cantina audit reports for IRM modules. (cantina.xyz)

Bucket C — Stablecoin yield (10–25%): savings rates and programmatic cash

Objectives: predictable USD yield, flexible liquidity for grants/ops.

sUSDS (Sky/Maker “Savings USDS”)
- The Sky Savings Rate (SSR) was actively tuned through 2025 (upper single‑digits to mid‑single‑digits). Treat SSR as adjustable policy yield funded by protocol revenues/RWAs; confirm current rate before allocation and prefer direct sUSDS with no third‑party wrappers. (governance.aave.com)
BENJI/WTGXX/USDC pairings on Aave v3
- For operational cash buffers, we favor Aave v3 deposit ladders with borrow caps and conservative LTVs. Observe Chaos Labs risk updates, especially after stablecoin depeg/incidents. (governance.aave.com)
USDY (Ondo; non‑U.S. investors)
- Accumulating or rebasing yield; KYC required, but broader access than OUSG (non‑U.S. natural persons/institutions). Check issuer docs for current APY policy and transfer hold periods. (docs.ondo.finance)

Operational tips:

Stream ops payroll in Superfluid USDCx; backfill the stream wallet via Safe Allowance and Auto‑Wrap to avoid manual USDC→USDCx wraps. (docs.superfluid.org)
Use Sablier for grants with cliffs and clawback; stream NFTs make audit trails trivial and avoid “unlock bombs.” (blog.sablier.com)

Case studies you can model today

Arbitrum DAO’s RWA program (STEP):
The DAO diversified a portion of a 2.8B ARB treasury into tokenized MMFs (e.g., BUIDL/FOBXX via Securitize; others through STEP managers). Monthly reports show daily interest distribution changes (e.g., BUIDL) and operational updates (e.g., exiting USDM during its wind‑down). This is a reference template for transparent RWA program ops in a large DAO. (forum.arbitrum.foundation)
ENS Endowment managed by Karpatkey:
2024 review reported ~$99M ncAUM, 100% capital utilization, and 3.7% net APY with a diversified onchain portfolio and strict risk controls; reporting cadence and stakeholder comms are exemplary. (discuss.ens.domains)
Uniswap DAO treasury mobilization:
A working group analyzed diversification paths for a mostly‑UNI treasury; in 2025, a $165M funding plan passed alongside steps to form a legal governance entity—relevant if your DAO seeks revenue‑share distribution or legal clarity on spend. (gov.uniswap.org)

Emerging best practices (2025–2026) you should adopt

Encode roles, not just multisig thresholds

Use Zodiac Roles to restrict DeFi actions by contract/function/params (e.g., allow “supply USDC to Aave v3 mainnet market id X up to cap,” deny everything else). Review roles quarterly. (docs.roles.gnosisguild.org)

Add time to think on “dangerous” txs

Apply TimelockController (governor) and Zodiac Delay (modules) so large reallocations can’t execute instantly. Use “anyone can execute” after delay to reduce centralization. (docs.openzeppelin.com)

Prefer tokenized T‑bill funds with daily accrual and clear holder registers

BUIDL, WTGXX, and BENJI/FOBXX offer daily accrual and compliance rails; check chain availability if you operate on L2s or alt‑VMs and confirm whitelisting. (prnewswire.com)

Treat restaking yield as a satellite strategy

After EigenLayer slashing went live, risk improved, but AVS reward variability and operator concentration remain. Cap exposure, track LRT liquidity depth, and don’t stack leverage. (coindesk.com)

Institutionalize risk management and reporting

Subscribe to Aave risk posts (Chaos Labs), require market caps/LTV changes to pass a roles‑gated policy, and publish a monthly RWA/DeFi risk memo (holdings, liquidity, oracle, counterparty). (governance.aave.com)

Stream, don’t dump

Pay service providers via Sablier/ Superfluid; combine with Safe Allowance so ops can refill streams inside small daily caps—no single signer can drain your treasury. (help.safe.global)

Build a compliant “access matrix” for assets

Maintain which wallets are KYC’d/eligible for BUIDL/WTGXX/FOBXX/OUSG vs. unrestricted assets. Enforce via allowlists in Roles/guards and keep copies of KYC attestations for auditors. (docs.ondo.finance)

Implementation blueprint (4–6 weeks)

Week 0–1: Foundation

Spin up a Safe matrix (entity and per‑chain), enable Spending Limits, add Zodiac Roles for “Cash Manager,” “DeFi Manager,” “Grants Manager,” wire Transaction Guards and Safe Shield. (help.safe.global)
Deploy OpenZeppelin Governor v5.x + TimelockController; set quorum/voting windows; write an Ops SOP for emergency pauses. (docs.openzeppelin.com)

Week 1–3: Cash rails and disclosures

KYC with Securitize (BUIDL), Franklin (BENJI/FOBXX), and WisdomTree (WTGXX); test tiny mint/redeem; document wallets on issuer whitelists. (franklintempleton.com)
Publish an “RWA Access Matrix” (who can hold what) and encode it in Roles/guards.

Week 2–4: Crypto yield legs

Stake ETH baseline (mix native + LST); if using restaking/LRTs, cap exposure and pick 1–2 LRTs with deepest liquidity. Slashing is live, but AVS opt‑in varies—track it. (coindesk.com)
Approve Aave v3/Morpho markets with documented oracles and caps; rely on Chaos Labs/Gauntlet notices for changes. (governance.aave.com)

Week 3–5: Disbursement automation

Move payroll/grants to Sablier or Superfluid; configure Auto‑Wrap; fund via Safe Allowance under daily caps; publish job‑to‑be‑done docs for contributors. (docs.superfluid.org)

Week 4–6: Reporting cadence

Stand up monthly PDF + Dune dashboards like Arbitrum STEP; include yield vs. 3‑month T‑bill benchmark, liquidity ladders, and risk flags. (forum.arbitrum.foundation)

Risk checklist (review weekly)

Counterparty/KYC: any change to whitelists for BUIDL/WTGXX/FOBXX/OUSG wallets? (docs.ondo.finance)
Oracle integrity: any deviations or paused feeds on your lending markets?
LRT liquidity: 1% exit slippage threshold met across top DEXs?
Concentration: native‑token exposure ≤ X%; restaking ≤ Y%; single‑protocol stablecoin ≤ Z%.
Governance ops: timelock queue clean; emergency roles tested; Defender migration plan on track for 2026. (blog.openzeppelin.com)

What changed recently that you should factor into 2026 plans

Tokenized MMFs/T‑bills are now “DeFi‑compatible” cash: BUIDL expanded multichain and is accepted as collateral by major venues; Franklin BENJI enabled P2P and USDC ramps; WisdomTree integrated fund rails with payments. This is the biggest unlock for compliant, yielding DAO cash management. (prnewswire.com)
EigenLayer shipped slashing; restaking moves toward “production risk.” Good for measured allocations, not for leverage loops. (coindesk.com)
One product exited: USDM wind‑down. Audit your policies to remove it from allowlists. (docs.mountainprotocol.com)
Governance infra is consolidating around OZ Governor v5.x + Timelock; with Defender sunset by July 1, 2026, plan your automation migration now. (docs.openzeppelin.com)

A final word on yields and expectations

ETH staking baseline remains roughly 3–4% APY; treat anything materially above that as adding market/structural risk (MEV, LRT smart‑contract/operator exposure). (theblock.co)
SSR/sUSDS and other “protocol rates” are dynamic; verify current rates and governance direction before onboarding. Avoid wrappers that add hidden risk. (governance.aave.com)
Tokenized T‑bill/MMF rails are the cleanest source of USD yield for DAOs that can KYC—and they increasingly interoperate with DeFi. Write the policy once, enforce with Roles/guards, and let Safe stream the workflows. (coindesk.com)

TL;DR implementation template you can copy

Governance: OZ Governor v5.x + Timelock; Snapshot for temp‑checks; 48–96h execution delay. (docs.openzeppelin.com)
Wallets: Safe with Spending Limits and Zodiac Roles; Safe Shield guards. (help.safe.global)
Cash: 30–60% across BUIDL, BENJI/FOBXX, WTGXX; KYC’d wallets only. (franklintempleton.com)
Crypto yield: 20–40% in ETH staking + selective LRT (<10%). (coindesk.com)
Stablecoin yield: 10–25% via sUSDS/Aave v3 ladders; avoid leverage loops. (governance.aave.com)
Disbursements: Sablier/Superfluid streams funded by Safe Allowance; no lump‑sum grants. (blog.sablier.com)
Reporting: monthly STEP‑style memo + dashboard; Chainlink PoR circuit breakers. (forum.arbitrum.foundation)

If you want help tailoring this to your org, 7Block Labs can stand up the full stack—policies, Safe roles/guards, KYC rails, and reporting—in under six weeks with your legal and finance teams in the loop.

Summary: A 2026‑ready blueprint for turning DAO tokens into enforceable treasury policy—combining Safe roles, OZ governance, tokenized T‑bill rails, ETH staking/restaking, and streaming disbursements—plus concrete guardrails and reporting practices proven in Arbitrum, ENS, and Uniswap. This is how to run an onchain treasury with enterprise‑grade discipline and DeFi‑native yield.