MonkeDAO Expands Its Treasury to Include Bitcoin-Backed zBTC

In a notable change in the way that DAOs & asset management

MonkeDAO, a prominent decentralized autonomous organization (DAO) on the Solana blockchain, has made a noteworthy addition to its treasury holdings with the integration of zBTC, a Bitcoin-backed asset on Solana. This move, which was recently announced, marks a significant shift in MonkeDAO’s treasury management strategy.

Instead of focusing solely on Solana's native coin (SOL) or stablecoins, MonkeDAO is now diversifying its treasury with Bitcoin reserves to mitigate volatility risk and enhance financial stability, especially in times of market turbulence.

The introduction of zBTC also allows MonkeDAO to benefit from Bitcoin liquidity in Solana's ecosystem, rather than relying on centralized or Ethereum-focused solutions like Wrapped Bitcoin (WBTC). This move is in accordance with Solana's vision of decentralized finance (DeFi), where Bitcoin and similar assets can be natively used across its more general DeFi protocols.

“We are excited to welcome zBTC to MonkeDAO's treasury. This integration aligns perfectly with our goal of maximizing financial resilience and expanding possibilities within the Solana ecosystem,” stated a spokesperson for MonkeDAO.

The integration of zBTC, a product of Blockfolio, a leading crypto company, provides MonkeDAO with several advantages:

* Treasury Stability & Risk Reduction: The price volatility of SOL poses a substantial risk to DAOs with treasuries denominated largely in ecosystem-native tokens. By hedging using Bitcoin-backed assets, MonkeDAO gives itself greater financial stability in the long term by making itself less dependent on SOL performance.

* Native Bitcoin Liquidity on Solana: zBTC offers a decentralized solution for using Bitcoin in Solana's DeFi, enabling MonkeDAO to trade, stake, and lend BTC without needing Ethereum-based solutions. This translates to lower transaction fees and faster execution speeds compared to wrapped Bitcoin options like WBTC, which require an intermediate bridge to Solana.

* Improved Financial Resilience: Bitcoin is renowned as the most reliable store of value in the cryptocurrency domain. By holding BTC-backed reserves, MonkeDAO effectively hedges for the long term against market dumps, ensuring that the DAO's financials remain strong even in times of cryptocurrency volatility.

* Setting an Example for Other DAOs: MonkeDAO's decision to accept Bitcoin reserves sets an example that other decentralized organizations may follow, considering Bitcoin as a decentralized and stable reserve asset. This could lead to the broader adoption of BTC-backed reserves across different blockchain ecosystems.

"We are continuously exploring new avenues to enhance MonkeDAO's treasury management strategies," added the spokesperson. "The inclusion of zBTC is a testament to our commitment to financial innovation and our goal of setting the standard for DAO treasury best practices."

Unlike Ethereum's Wrapped Bitcoin (WBTC), which relies on centralized custodians to mint and redeem BTC, zBTC is a Bitcoin-backed asset natively deployed on Solana. It allows BTC liquidity to be spent in Solana DeFi, potentially powering lending, borrowing, and trading at a large scale with minimal transaction fees.

This integration also solidifies Solana's position in DeFi, showing that Bitcoin liquidity can be used for good in an ecosystem other than Ethereum's.

MonkeDAO's decision to accept Bitcoin reserves is a sign of a growing trend in DAO treasury management. As the crypto market matures, more and more DAOs are looking for ways to hedge their treasuries against volatility.

Moreover, with growing cross-chain solutions like zBTC and other BTC-backed assets, multi-chain treasury diversification is becoming increasingly possible, allowing for less fragmented financial operations across different blockchain ecosystems.

MonkeDAO's embracement of Bitcoin reserves via zBTC is a landmark moment for decentralized finance. By adopting BTC-backed assets, MonkeDAO enhances its financial stability, liquidity, and long-term viability, setting a new standard for DAOs on the Solana network.