Treasury

The Space Protocol treasury is a decentralized innovation of the traditional banking system. Like a bank, Space Protocol’s treasury stores value for the ecosystem and provides financing mechanisms that enable users to access growth capital and also grow the value of their savings. However, the Space treasury uses sound economics and decentralized voting to create a whole new reserve model that gives Liquidity Providers agency to provide growth capital where it’s deemed suitable. Additionally, the Space treasury uses novel principle protection mechanisms to create a highly de-risked model of financing that ensure mutual benefit and aligned incentives for the ecosystem’s counter-parties.

Wrap ALPs for SPACE: The SPACE treasury allows users to wrap their ALPs for SPACE. By holding SPACE, users get a singular asset that is backed by the index of all the revenue pools in the protocol.

Leveraging NFTs: In Space Protocol, NFTs act as marker of the revenue contributed by Asset Operators. These NFTs enable Asset Operators to submit a loan proposal of the treasury which is then voted upon by the DAO. Asset Operators can only submit a loan proposal up to the value that their NFT reflects in the treasury. Once an Asset Operator submits their loan proposal, the ecosystem’s community can assess the Asset Operator reputation in the ecosystem, their contributions-to-date and vote on whether to approve that loan.