Treasury Management PBL


Onboarding video

The goal of this module is to teach people about treasury management for organisations that receive funds in ADA, a digital currency. Students will learn about the challenges and opportunities that come with managing digital currency, as well as strategies for ensuring the security and stability of funds.

Materials needed: Access to the internet, a computer or mobile device, Cardano wallet.

Treasury management is essential to any organisation. There are a few ways to approach treasury management and we’ll be looking at some of the options known and used by the Catalyst community.

The basics of ADA and the Cardano blockchain

ADA is the cryptocurrency used on the Cardano blockchain. Cardano is a decentralized and open-source blockchain platform that was created in 2015 by IOHK (Input Output Hong Kong). It is built on a proof-of-stake consensus algorithm called Ouroboros and uses a unique multi-layer architecture that separates the computation layer from the settlement layer, allowing for more flexibility and scalability. Cardano also aims to be more environmentally friendly than other blockchain networks through its use of a more energy-efficient consensus mechanism. The Cardano blockchain is also designed to support smart contracts and decentralized applications (dApps).


A Cardano wallet is a digital wallet that allows you to store, manage, and send Cardano (ADA) and other assets built on the Cardano blockchain. A Cardano wallet typically has a software interface that you can use to interact with the Cardano blockchain and view your transactions, balances, and other information. There are different types of Cardano wallets available, including:

Hardware wallets: These are physical devices, like a USB drive, that store your private keys offline and provide an extra layer of security against hacking and theft.

Software wallets: These are digital wallets that you can download and install on your computer or mobile device. Some examples include Daedalus

Web Wallet: These are online wallets that you can access through a web browser. Examples include Typhon and Eternl. When you create a Cardano wallet, you will typically be given a unique public address, which is a string of letters and numbers that you can use to receive Cardano and other assets.

Multisig wallets

A Cardano multisig wallet, also known as a multi-signature wallet, is a type of cryptocurrency wallet that requires more than one signature or approval from multiple users before a transaction can be executed. In a multisig Cardano wallet, multiple individuals hold private keys, and a certain number of those keys are required to sign off on a transaction before it can be processed. This added layer of security helps to prevent unauthorized or accidental spending of funds and is often used by organizations or groups managing collective funds.

You will also be given a private key, which is a secret code that you will use to sign transactions and access your wallet. It is important to keep your private key safe and secure, as anyone with access to your private key can spend the funds in your wallet.

Hardware wallet is considered the most secure option. When you want to send Cardano or other assets, you can use the software interface of your wallet to input the recipient's address and the amount you want to send. The transaction will then be broadcast to the Cardano blockchain, where it will be confirmed by the network and added to the blockchain. Please remember that, as with all types of crypto wallets, it is your responsibility to ensure the security of your wallet, and to carefully consider the option that best suits your needs.

Private Keys

A private key on the Cardano blockchain is a secret code that grants access to the funds stored in a specific address. It is used to sign transactions, allowing users to transfer their funds to other addresses. It is important to keep private keys secure as anyone with access to them can control the funds associated with that address. Private keys should never be shared with anyone and should be stored in a secure and safe place.

Key ownerships

Key ownership on the Cardano blockchain refers to the control and access of funds stored in a specific address by a person or entity that possesses the private key associated with that address. In other words, the owner of a private key has complete control over the funds stored in the address tied to that private key. Key ownership is an important aspect of the Cardano blockchain as it ensures the security and privacy of funds stored on the network. It also allows users to have full control over their funds and makes transactions on the network trustless and decentralized.

Non-custodial wallets

Non-custodial wallets are digital wallets in which the owner holds the private key and has full control over their funds. This means that the funds are not held by a third party, such as an exchange, but rather by the user themselves. In the context of Cardano blockchain, a non-custodial wallet is a wallet that allows users to securely store, manage, and transact with their Cardano (ADA) cryptocurrency without relying on a centralized entity.

Using exchanges

Using exchanges to buy, sell, or trade cryptocurrencies has some potential problems and risks, including:

Security risks: Exchanges are vulnerable to hacking and cyberattacks, which can result in the loss of funds or personal information.

Limited control: When you keep your cryptocurrency on an exchange, you don't have full control over your private keys and therefore, you rely on the exchange to keep your assets safe.

Lack of privacy: Exchanges often require personal information, such as a name, address, and government-issued ID, to comply with anti-money laundering and know-your-customer regulations. This information may not be secure and can be compromised.

Risk of censorship: Exchanges may restrict or block access to certain cryptocurrencies, either due to government regulations or their own policies, which can limit your options and freedom.

Downtime and technical issues: Exchanges are prone to downtime and technical glitches, which can affect your ability to access or trade your assets.

Overall, it's important to carefully consider the risks and trade-offs of keeping your cryptocurrency on an exchange versus holding it in a self-custodied wallet.

What is Metadata

In the context of blockchain technology, "metadata" refers to data about data. In the case of Cardano, metadata might include information such as the date and time of a transaction, the address of the sender and recipient, and the amount of Ada (the native cryptocurrency of the Cardano network) transferred. This metadata is stored on the blockchain and can be used to provide transparency and accountability in transactions.

How to add Metadata in a transaction?

In the Cardano blockchain, Metadata is stored on-chain as a string of data that is associated with a specific transaction or block. To add metadata to a transaction, you can include it as an additional parameter when building the transaction. Metadata is useful for tracing transactions in reverse.

It is also important to note that you can also add Metadata to a block, on Cardano there is an option called "Block Apertures" which allows for adding metadata to the blocks. However, this feature is only accessible for "Shelley" and "Goguen" era blocks and requires a node operator to allow for it, enabling the aperture size on their nodes.


Stablecoins are digital assets that are pegged to the value of a specific currency or asset, such as the US dollar. Cardano is a decentralised blockchain platform that enables the development and execution of smart contracts and decentralised applications.

It is possible to create and use stablecoins on the Cardano blockchain, but it would require the development of a smart contract to implement the functionality. The Cardano community also has several projects which are working on creating stablecoins on the Cardano blockchain.

What are Exchanges?

A cryptocurrency exchange, or digital currency exchange (DCE), is a business that allows customers to trade cryptocurrencies or digital currencies for other assets, such as conventional fiat money, or different digital currencies. They can be market makers that typically take the bid-ask spreads as transaction commissions for their services or simply charge fees as a matching platform. Most cryptocurrency exchanges are designed to accept a variety of payment methods, including bank transfers, credit/debit cards, and even cash. Some exchanges are also used to facilitate trading of digital assets such as Bitcoin, Ethereum, Cardano…

We have two types of exchanges:

Centralized exchanges (CEX) and Decentralized exchanges (DEX)

The main difference between a centralized exchange and a decentralized exchange (DEX) is how they operate and the level of control that users have over their funds. Centralized exchanges (CEX) are operated by a central authority, such as a company.

They typically hold users' funds in a central location, often in the form of hot or cold wallets. This means that users have to trust the exchange to keep their funds safe and to execute trades correctly.

Centralized exchanges typically have a wider range of trading pairs, higher trading volumes, and faster trade execution times. They also offer more advanced trading features such as margin trading and stop-loss orders.

Decentralized exchanges (DEX) operate on a blockchain network, and they do not have a central authority controlling them. Instead, they rely on smart contracts to execute trades. Because they do not hold users' funds, users maintain full control of their own assets at all times and can access their funds directly from their own personal wallets.

Decentralized exchanges typically have lower trading volumes, slower trade execution times, and fewer trading pairs. However, they offer a higher degree of security, as there is no central point of failure for hackers to target. In summary, centralized exchanges tend to be more user-friendly and offer more advanced trading features, but users have to trust the exchange to keep their funds safe. Decentralized exchanges offer more security, but may have lower trading volumes and fewer trading pairs.

There are several cryptocurrency exchanges that support trading of Cardano (ADA), the native cryptocurrency of the Cardano blockchain. Some popular exchanges that list ADA include Binance, Huobi Global, OKEx, and Kraken.

Additionally, Cardano has its own decentralized exchange called "AdaLite" which enables you to trade ADA and other tokens built on the Cardano blockchain.

Some of the DEXes on Cardano: Minswap, SundaeSwap, MuesliSwap, WingRiders, etc…

Keep in mind that different exchanges may have different trading pairs, fees, and security measures, so it's important to do your own research and choose the exchange that best meets your needs.

Building Background Knowledge

Building Background Knowledge Video

Using the funding

In order to receive funds you will need a Cardano wallet. Here is a list of a few trusted wallets used on Cardano.


Opening a wallet

Here are the basic steps you would need to take in creating a Cardano wallet:

Find a browser extension: Look for Cardano wallet browser extensions in the Chrome Web Store or Firefox Add-ons. Some popular browser extension options include Eternl, Typhon or any on the list we provided above.

Install the browser extension: Once you have found a browser extension you would like to use, click on the "Add to Chrome" or "Add to Firefox" button to install it.

Create a new wallet: After installing the browser extension, you will need to create a new wallet. This will typically involve entering a password and creating a seed phrase. Make sure to keep this seed phrase in a safe and secure place.

Backup your wallet: After creating your wallet, you will need to backup the seed phrase. This is important in case you lose access to your wallet or your computer crashes.

Check your wallet balance: Once your wallet is set up, you can check your balance by clicking on the browser extension icon and then clicking on the "Balance" tab.

Receive ADA: To receive ADA, you will need to share your wallet's address with the sender. This can be done by clicking on the browser extension icon, then on the "Receive" tab and then sharing the address provided.

Send ADA: To send ADA, you will need to click on the browser extension icon, then on the "Send" tab, enter the recipient's address, and then specify the amount of ADA you would like to send.

Keep in mind that browser extensions do not have the same level of security as hardware wallets or software wallets installed on a personal computer, so you should always be careful when using them and not store large amounts of ADA in them.

Keeping your seed phrases safe

Here are some best practices for storing the seed phrase of your Cardano wallet:

Write it down on a piece of paper: This is one of the most secure ways to store your seed phrase as it is not connected to the internet and is not susceptible to hacking or data breaches.

Keep it in a safe or safety deposit box: This is another secure option for storing your seed phrase, as it is protected from physical damage and theft.

Use a hardware wallet: A hardware wallet is a physical device that stores your seed phrase offline, making it much more secure than storing it on a computer or mobile device.

Avoid storing it on a computer or mobile device: Storing your seed phrase on a computer or mobile device is not recommended, as it is susceptible to hacking, malware, and data breaches.

Don't share it with anyone: Do not share your seed phrase with anyone, as it is the key to accessing your funds.

Keep multiple copies: Keep multiple copies of your seed phrase in different locations, in case you lose one copy.

Avoid taking screenshots or photos of your seed phrase: If you do need to store it digitally, use a password manager or encrypted file.

Keep it separate from other personal information: Avoid writing down your seed phrase on any document that contains your personal information, like your ID or passport.

Below is a series of links that will show you how to create and use these wallets:

JPG Store: How to create a Typhon wallet -


Typhon Wallet:

Flint How To Series:

Nami Wallet

Multisig Wallets

Multisig wallets operate by requiring multiple signatures or approvals from designated users before a transaction can be executed.

The process works as follows: Creation: When creating a multisig wallet, the users specify the number of signatures required to authorize a transaction. This number can be 2 or more, and each user holds a private key.

Transaction initiation: When a transaction is initiated, it is broadcast to the network for approval.

Approval process: The transaction requires the specified number of signatures from designated users before it can be executed. Each user signs the transaction with their private key, and once the required number of signatures is reached, the transaction is broadcast to the network for validation.

Validation: The network verifies the signatures and executes the transaction if it is valid. This added layer of security provided by multisig wallets helps to prevent unauthorized or accidental spending of funds and can be useful for managing collective funds in organizations or groups.

How to use a Multisig wallet?

Here are the steps to use a multisig wallet:

Setup: The first step is to set up the multisig wallet by determining the number of signatures required to authorize a transaction, and distributing private keys among the designated users.

Fund the wallet: The next step is to deposit funds into the multisig wallet. This can be done by sending cryptocurrency to the wallet's public address.

Initiate a transaction: When a user wants to initiate a transaction, they create a transaction proposal and broadcast it to the network.

Approval process: The transaction requires the specified number of signatures from designated users before it can be executed. Each user signs the transaction with their private key.

Validation: Once the required number of signatures is reached, the transaction is broadcast to the network for validation.

The network verifies the signatures and executes the transaction if it is valid. It is important to note that the specific steps and details for using a multisig wallet can vary depending on the wallet provider and the underlying blockchain platform. Users should carefully review the instructions provided by their wallet provider and make sure they understand the process before using a multisig wallet.

Cardano wallet support Multisig wallet?

It is important to note that the specific features and support for multisig wallets can vary among different Cardano wallet providers. Users should carefully review the features offered by each wallet and make sure that it meets their specific needs and requirements before using it.

One example of a multisig wallet is ADAO’s Roundtable wallet

Here are links to the wallet and tutorial.

Hardware Wallets

A hardware wallet is a physical device used for storing and managing cryptocurrency assets offline, providing a secure solution for protecting one's investments. Cardano is supported by a range of hardware wallets, including:

Ledger Nano X: A popular hardware wallet offering support for multiple cryptocurrencies, including Cardano, with secure storage and easy transactions through a mobile or desktop app.

Trezor Model T: A high-end hardware wallet with a touch screen, providing secure storage and management of Cardano assets, along with multiple other cryptocurrencies.

By using a hardware wallet for Cardano, users can be confident in the security of their assets, as the private keys are stored on the device, rather than on an exchange or a computer that could be vulnerable to hacking or theft. Additionally, hardware wallets typically offer an added layer of security through the use of passwords, biometrics, and other authentication methods.

For maximum security it is best practice to use a hardware wallet. Here are a few links that will help you set up and use hardware wallets as well as get a better understanding of how they work.

Store and stake Cardano on a Ledger Nano S -

Hardware wallets -

Converting from ADA to your currency

To convert your ADA into your local currency you will need to move it to a Centralised exchange. These exchanges have tutorials on them that will help you with the process.

Here is an example of tutorials on Kraken -

Here is a list of a few trusted exchanges.


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Binance World:

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Binance USA:

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CEX suggestions and pros/cons

Pros of storing crypto on a centralized exchange:

Convenience: Centralized exchanges are easy to use and accessible for people who are new to crypto.

Liquidity: Centralized exchanges have high trading volume, which makes it easy to buy and sell large amounts of crypto quickly.

Safety: Centralized exchanges have security measures in place to protect user's assets and personal information.

Cons of storing crypto on a centralized exchange:

Risk of hacking: Centralized exchanges are vulnerable to hacking and other types of cyber attacks.

Risk of exchange insolvency: Centralized exchanges are centralized, meaning that they are controlled by a single entity that can go bankrupt, which can lead to loss of funds.

Risk of government intervention: Centralized exchanges are regulated by government and can be subject to government intervention, which can lead to the freezing or seizing of user's assets.

Risk of censorship: Centralized exchanges are centralized, meaning that they can be controlled by a single entity that can decide to delist certain coins or shut down the exchange altogether.

Risk of regulations: Centralized exchanges are subject to regulations and can be forced to comply with regulations that may harm users, for example, by forcing users to reveal their identities or freezing their funds.

It is best practice to store your crypto in your crypto wallet and only move it to a CEX when you want to convert it to FIAT.

Ratings for coinbase:

Binance Rating:

Converting your ADA to stablecoin on a Cardano Dex

To convert your ADA to a stablecoin using a decentralized exchange (DEX) built on the Cardano blockchain, you will need to follow these basic steps:

Find a DEX built on Cardano: There are a few DEXs that have been built on the Cardano blockchain, we have provided a list below. You will need to find one that supports trading of stablecoins and has a user-friendly interface.

Connect your wallet: You will need to connect your wallet to the DEX in order to access your ADA funds. You can use any of the wallets on our wallet list to connect to the DEX.

Click on the Connect wallet button if your wallet is not connected. Once connected, look for the swap button. On clicking the swap button you will be presented with a screen where you can select the trading pairs. you will need to find the stablecoin trading pair on the DEX. This will typically be ADA/Stablecoin (e.g. ADA/iUSD).

Enter the amount of ADA you want to change to Stablecoin and review the order. When you hit submit and the order is processed the Stablecoin will be sent to your wallet.

Please note that these are basic steps for converting ADA to a stablecoin using a DEX built on Cardano. Always be sure to do your own research and ensure that you are using a legitimate and reputable exchange.

List of DEXs

There are several decentralized exchanges (DEXs) that can be used on the Cardano blockchain. Some examples include:

Minswap - is a multi-pool decentralized exchange on Cardano.Swap tokens with minimal cost, minimal time and maximal convenience.

Adax - a decentralized exchange built on the Cardano blockchain, which supports trading of multiple tokens.

MuesliSwap - aims to enrich the Cardano Defi ecosystem with a range of new trading features, not only limiting itself to Token Trading but also an NFT Marketplace and a decentralized Token Launchpad.

SundaeSwap - is a decentralized exchange built for the Cardano blockchain. It allows participants of the blockchain to provide liquidity and create a market for others to exchange their native tokens.In return, swappers pay a small fee and liquidity providers earn a return on their deposit.

These are just a few examples of the DEXs available on Cardano. There may be others available as well.


Keeping track of your funds

Now that you got funded, you will need to keep track of your funds and determine how many more instalments you will receive. IOG will send a notification via Telegram when they have disbursed funds. The message will include the transaction id numbers and the exchange rate used for the disbursement.

To determine the amount of funds you have received from IOG and the number of remaining instalments, you should first multiply the number of ADA received by the exchange rate provided by IOG. This will give you the total dollar amount of the funds received. Then, divide the total dollar amount of funds requested in your proposal by the dollar amount you have just calculated. This will tell you how many more instalments you will receive from IOG. In order to receive the final installment, you will need to submit a close out report. If you have submitted multiple proposals, you should ensure that the funds you receive are properly allocated to the corresponding proposals by providing a unique wallet address for each proposal.

It is essential to track the funds received for your project in order to ensure its success. One way to do this is to record each transaction in a spreadsheet. You should also create spreadsheets to help you manage the distribution of funds for specific actions or events. The following links can provide helpful guidance on how to distribute and monitor the status of your project's funds.

Monthly Income spreadsheet (especially helpful if you have more than one proposal)

Proposal specific spreadsheet

Proposal specific spreadsheet (ADA only)

Distribution for event spreadsheet

Here is a Miro board that explains these spreadsheets in more detail

Creating Invoices

When receiving funds for your proposal, you will need to create an invoice that your accountant can use to prove where the money came from. Here is an example of an invoice with all the necessary fields.

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Tools that can help with taxes

Cryptocurrency tracking and tax reporting tools are software applications designed to help users track their cryptocurrency investments, transactions, and calculate their tax obligations. Some of the most popular tools include:

CoinTracking: A comprehensive platform that integrates with various exchanges to provide real-time data on portfolio balances, profit and loss, tax reports, and more.

CoinLedger: A platform offering automatic tracking of all crypto transactions, portfolio management, and tax reports in one place.

These tools offer a variety of features and integrations, making it easier for users to track their cryptocurrency investments and report their taxes accurately. However, it is important to thoroughly research and compare different tools before making a choice, to ensure that the tool meets the user's specific needs.


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How to mitigate loss due to volatility

Because of the volatile nature of cryptocurrency, it is recommended to convert received funds into a stablecoin or to pay contributors at the time of fund release. In order to do this with minimal loss, it is important to plan ahead and determine who will be paid and how much will be converted into stablecoin before the funds are released by IOG

If you created a brand new organisation and need help on compliance with local regulations, here are some resources that can help with that.


Specializing Video

What is treasury management?

Treasury management refers to the corporate process of managing an organization's financial resources, including managing cash, liquidity, and funding sources, as well as handling financial risks and exposures. It involves activities such as cash management, risk management, and investment management to help companies optimize their financial performance.

Treasury management involves various activities such as:

Cash Management: This involves monitoring and managing cash inflows and outflows to ensure that there is always enough cash available to meet business needs.

Risk Management: This involves identifying and mitigating financial risks that may impact the company, such as interest rate risk, currency risk, and credit risk.

Investment Management: This involves managing the company's investments to optimize returns and minimize risk. This may include investing surplus cash in short-term securities, such as money market instruments.

Funding Management: This involves finding the most cost-effective and efficient sources of funding for the company, such as bank loans, bonds, or equity.

Financial Planning and Analysis: This involves analyzing the company's financial performance and creating financial projections for the future.

The goal of treasury management is to ensure that a company's financial resources are used in the most effective and efficient way possible, to support the organization's growth and success.

Treasury management is essential to any organisation. There are a few ways to approach treasury management and we’ll be looking at some of the options known and used by the Catalyst community.

The following decision tree will help you identify the options available to your organisation.

What is the size of your project?

  1. Small (1-5 people)

  2. Medium (5-25 people)

  3. Large (over 25 people)

If a) or b)

Small or Medium operation

Consider using personal finance management tools or spreadsheets to track and manage your income and expenses.

Consider staking your ada to earn interest on your surplus funds.

Consider setting up automatic savings or investment plans to help you reach your financial goals.

If c)

Large corporate operation

Does your company have a dedicated treasury team or do you need to outsource treasury management services?

Dedicated treasury team

Consider implementing treasury management software to streamline and automate treasury processes. Consider using a CEX or DEX to manage currency risks.

Need to outsource treasury management services

Consider using 3rd parties like the Governance Guild to access additional treasury management resources and ensure efficient and effective financial management of your project.

How do you plan to use the funds for your project?\

  1. a) Make small, frequent payments

  2. b) Make large, infrequent payments

  3. c) Pay contributors

  4. d) Make investments

If a) Make small, frequent payments:

Consider using a hot wallet like Eternl or Typhon (or any other trusted wallet) to manage your ADA. You can also add metadata to your transactions to track your spending. It may also be beneficial to convert your ADA to stablecoin via an exchange to minimaize price fluctuations.

If b) Make large, infrequent payments:

Consider holding your funds in stablecoin to minimize price fluctuations. However, keep in mind that you will have to pay exchange fees to convert your ADA to stablecoin. It may also be beneficial to use the bulk payment feature on Cardano to pay multiple contributors in one transaction.

If c) Pay contributors:

Consider converting your ADA to stablecoin to minimize price fluctuations for your contributors. For paying contributors, consider using a hot wallet like Eternl or Typhon (or any trusted wallet) to securely store and manage your ADA. Adding metadata to your transactions can be helpful for tracking your spending.

If you need to pay multiple contributors in ADA, you can build a bulk payment in Eternl or Typhon that will execute in one transaction.

If you prefer to pay in stablecoin, consider a CEX or DEX to change your ADA into stablecoin. You may also want to consider using the Governance Guild for assistance with your treasury management services.

If d) Make investments:

Consider holding a portion of your funds in stablecoin to minimize price fluctuations and to have liquidity for investments. However, keep in mind that holding your funds in ADA may offer potential growth opportunities. It may be beneficial to seek Financial advice.

Final thoughts

You may want to consider using 3rd parties like the Governance Guild to access additional treasury management resources and ensure efficient and effective financial management of your project.

Please keep in mind that there are pros and cons to paying in ADA or stablecoin. ADA may offer potential long-term value, but can also be volatile in the short-term. Stablecoin offers stability, but may not offer the same potential for growth. Consider your project's specific needs and goals when making this decision.


Contributing Video

Project activities:

Develop a treasury management plan for your organisation that includes strategies for:

Secure storage of funds

Risk management

Compliance with regulations

Transparency and reporting

Create a budget and financial projections for the organisation, taking into account fluctuations in the value of ADA.

Share the treasury management plan and budget on Canvas and receive feedback.

Please feel free to add Feedback on the course itself

Note: This is a basic module, you can add more activities based on the level of your organisation and your understanding of the subject.

How to get in touch and use Governance Guild services?

If you want to spend more time focusing on your project and less time on tracking and distributing your funds you can use 3rd party services like Governance Guild to distribute and document all your transactions. Governance Guild includes metadata in the transactions which is very useful when backtracking. You can contact André or Miroslav if you need these services.

Telegram handles -

Miroslav -

André -

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