A DAO fund is put in place to further sustain peg in event of a bank run or peg is at risk.
A treasury fund has been set up as an additional measure to backstop WLRS's 1:1 USDC.e peg alongside the WBOND mechanism. The Frozen Walrus Treasury Fund's main purpose is to aid in the reclaiming of 1 WLRS: 1 USDC.e peg and does so in a number of ways.
- The treasury fund may begin buybacks of WLRS in the event WLRS TWAP falls below 1 USDC.e. These buybacks will be performed manually and at the discretion of the Frozen Walrus team so that they can not be gamed or front ran.
- When the WLRS TWAP is extremely high, the treasury fund will sell some WLRS in order to repair its reserve funds that it may deploy in the event of slipping below peg.
- The Treasury Fund may or may not make additional investment to yield and grow it's assets to bolster the Frozen Walrus ecosystem.