Pars Protocol

Treasury Overview

The foundation of Pars Protocol, holding all assets that back PARS and providing capital for protocol operations.

Treasury Overview (خزانه)

The Treasury (خزانه - Khazaneh) is the foundation of Pars Protocol. It holds all assets that back PARS and provides the capital for protocol operations. Treasury management is governed by the Pars Council through transparent, on-chain processes.

Treasury Architecture

┌─────────────────────────────────────────────────────────────────────────────┐
│                           PARS TREASURY (خزانه)                               │
├─────────────────────────────────────────────────────────────────────────────┤
│                                                                              │
│  GOVERNANCE LAYER                                                           │
│  ┌─────────────────────────────────────────────────────────────────────────┐│
│  │  Pars Council ──► Resolutions ──► Treasury Policies                     ││
│  └─────────────────────────────────────────────────────────────────────────┘│
│                                       │                                      │
│                                       ▼                                      │
│  CUSTODY LAYER (Safe Multisig)                                              │
│  ┌─────────────────────────────────────────────────────────────────────────┐│
│  │                                                                         ││
│  │  ┌───────────────┐  ┌───────────────┐  ┌───────────────┐               ││
│  │  │ Main Treasury │  │  Operations   │  │    Grants     │               ││
│  │  │   (3-of-5)    │  │   (2-of-5)    │  │   (3-of-5)    │               ││
│  │  │               │  │               │  │               │               ││
│  │  │ Long-term     │  │ Monthly opex  │  │ Ecosystem     │               ││
│  │  │ reserves      │  │ up to $10K    │  │ development   │               ││
│  │  └───────────────┘  └───────────────┘  └───────────────┘               ││
│  │                                                                         ││
│  └─────────────────────────────────────────────────────────────────────────┘│
│                                       │                                      │
│                                       ▼                                      │
│  ASSET LAYER                                                                │
│  ┌─────────────────────────────────────────────────────────────────────────┐│
│  │  Stablecoins │ ETH │ Protocol-Owned Liquidity │ Yield Positions         ││
│  └─────────────────────────────────────────────────────────────────────────┘│
│                                                                              │
└─────────────────────────────────────────────────────────────────────────────┘

Core Responsibilities

1. PARS Backing

The treasury ensures every PARS is backed:

backing_per_PARS = total_treasury_value / PARS_circulating_supply

The backing ratio is:

  • Calculated on-chain every block
  • Publicly verifiable
  • Used for stability mechanism triggers

2. Liquidity Provision

The treasury maintains permanent liquidity:

  • Protocol-Owned Liquidity (POL) in DEX pools
  • No reliance on external liquidity mining
  • Trading fees return to treasury

3. Stability Operations

Treasury funds stability mechanisms:

  • Range-Bound Stability (RBS) market operations
  • Inverse bonds to support price floor
  • Reserve bonds to capture price ceiling

4. Committee Funding

Treasury allocates resources to Committees:

  • Streaming payments via Sablier
  • Milestone-based grants
  • Emergency allocations

Multi-Sig Structure

Main Treasury

ParameterValue
Threshold3-of-5 signers
PurposeLong-term reserves, large allocations
LimitsGovernance approval required

Operations Vault

ParameterValue
Threshold2-of-5 signers
PurposeRecurring operational expenses
Limits$10,000/month

Grants Vault

ParameterValue
Threshold3-of-5 signers
PurposeEcosystem grants and bounties
LimitsGovernance approval required

Spending Tiers

All treasury expenditures follow tiered approval:

Tier 1: Under $10,000

ParameterValue
Voting Period7 days
Quorum10% vePARS
Approval>50%
Timelock48 hours

Tier 2: $10,000 - $100,000

ParameterValue
Voting Period14 days
Quorum15% vePARS
Approval>50%
Timelock7 days

Tier 3: Over $100,000

ParameterValue
Voting Period21 days
Quorum20% vePARS
Approval>67% (super-majority)
Timelock30 days

Reserve Requirements

The DAO maintains minimum reserves:

RequirementValueDescription
Operational Runway6 monthsCover all active streams and costs
Stablecoin Reserve30% of runwayHedge volatility
Emergency Fund$100,000 minimumImmediate security response

If reserves fall below minimum, Tier 2 and Tier 3 spending suspends automatically.

Diversification Policy

Treasury assets are diversified:

ConstraintLimit
Single Asset Max30% of total (excluding PARS)
Stablecoin Min20% of total
PARS Max50% of total
RebalancingQuarterly

Asset Allocation

Reserve Assets

AssetPurposeTarget Allocation
USDCStability, immediate liquidity15%
DAIDecentralized stable10%
sDAIYield-bearing stable5%

Protocol Assets

AssetPurposeTarget Allocation
ETHCore crypto exposure20%
PARS/ETH LPProtocol-owned liquidity25%
PARS/USDC LPStablecoin liquidity10%

Yield Positions

PositionPurposeTarget Allocation
Yield strategiesTreasury growth15%

Revenue Sources

Protocol Revenue

SourceDescription
Bond premiumsProfit from bond sales above backing
Trading feesFees from POL positions
Advance interestFees from Advance facility
YieldReturns from treasury investments

Revenue Distribution

Protocol Revenue
      │
      ├──► 70% to Treasury reserves
      │
      ├──► 20% to xPARS stakers
      │
      └──► 10% to Committee allocations

Streaming Payments

The treasury uses Sablier for continuous payments:

Contributor Streams

  • Monthly compensation flows continuously
  • Claimable at any time
  • Cancellable if contributor stops work

Grant Streams

  • Milestone-based unlocks
  • Cliff periods for large grants
  • Automatic distribution

Emergency Procedures

Emergency Freeze

Any 2-of-5 signers can freeze treasury:

  • Duration: 72 hours maximum
  • Effect: All transactions paused
  • Extension: Requires governance vote

Emergency Recovery

If signer compromised:

  1. Remaining signers freeze treasury
  2. Expedited governance vote (3 days)
  3. Replace compromised signer
  4. Lift freeze

Transparency

On-Chain Visibility

All treasury operations are on-chain:

  • Transaction history public
  • Reserve composition verifiable
  • Spending trackable

Quarterly Reports

Published reports include:

  1. Balance sheet
  2. Income statement
  3. Expenditure breakdown
  4. Stream status
  5. Reserve compliance
  6. Diversification compliance
  7. Upcoming obligations

Reports published on-chain (IPFS) and at pars.vote.

Treasury Dashboard

Monitor treasury at app.pars.network/treasury:

  • Real-time reserve composition
  • Backing ratio
  • Active streams
  • Recent transactions
  • Historical data

Contract Addresses

ContractAddress
Treasury0x... (TBD)
Main Safe0x... (TBD)
Operations Safe0x... (TBD)
Grants Safe0x... (TBD)

How Bonds Work

Detailed technical documentation on bond purchase flow, Sequential Dutch Auction pricing, vesting, and integration with Range-Bound Stability.

Committee Treasuries

Dedicated treasuries for each of the Ten Committees, detailing structure, funding, and governance.

On this page

Treasury Overview (خزانه)Treasury ArchitectureCore Responsibilities1. PARS Backing2. Liquidity Provision3. Stability Operations4. Committee FundingMulti-Sig StructureMain TreasuryOperations VaultGrants VaultSpending TiersTier 1: Under $10,000Tier 2: $10,000 - $100,000Tier 3: Over $100,000Reserve RequirementsDiversification PolicyAsset AllocationReserve AssetsProtocol AssetsYield PositionsRevenue SourcesProtocol RevenueRevenue DistributionStreaming PaymentsContributor StreamsGrant StreamsEmergency ProceduresEmergency FreezeEmergency RecoveryTransparencyOn-Chain VisibilityQuarterly ReportsTreasury DashboardContract AddressesRelated Documentation