# Treasury

Kuza leverages bonds as a means of growing its treasury. Its assets are used strategically, following a carefully considered approach aimed at creating net value for the Avalanche ecosystem, its community and cultural innovation.

### Initial assets integrated for bond purchases:

**Single Assets**:

* $AVAX
* $QE: Kuza's native token

**LP tokens from TraderJoe**

* $QE/AVAX LP Tokens
* $COQ/$AVAX LP Tokens
* $KIMBO/$AVAX Lp Tokens

### Treasury's key functions:

* **Project Growth (5%)**\
  For further development of Kuza, funds will be redistributed to projects that leverage AI, ML, and Deep Learning to improve cash management through smart rebalancing and other methods.
* **Yield Strategies (35%)**\
  Due to the inherent characteristics of its assets, Kuza's treasury naturally generates yield. This yield initially offsets part of the $QE emissions and will account for the real yield of $QE staking. The protocol reinvests the yield to new DeFi strategies to increase the treasury and adds a reward layer for $QE sustainability.
* **Protocol Owned Liquidity (50%)**\
  1\. **Compounding LPs**: All the fees collected from the LP tokens are set to be compounded to grow our LP and generate more yield while supporting meme coins liquidity. \
  2\. **Buy Back**: Based on DAO decisions, Kuza may undertake to buy tokens like $COQ/$KIMBO to influence their supply and keep buying pressure on them. \
  3\. **Community Support:** use the treasury earnings to support the "meme culture" on Avalanche by helping community initiatives through Liquidity, Education, Hackathons...If any worthy projects are voted for by QE holders, they will be eligible for grants. This initiative aims to promote creativity and innovation that align with Kuza's values and long-term goals.
* **Team (10%)**

<figure><img src="https://lh7-us.googleusercontent.com/ZAJGsYTHG0KJt_2kSTq0Azls-FNy0KWpwqU4iaouSq8-rB-HHt7dMwoR24-ixNeMj0QXnXJa3UYBDkaG6NJaLaIaLGYnnuw8JoYLsB-jjQoB24UYMJim60wl0oKtsqm6ITDueWz0bVdjIvxjf7irdz7Wnw=s2048" alt=""><figcaption></figcaption></figure>

### Growth:&#x20;

Here is a projection of the growth of the treasury that quickly increases during the liquidity bootstrapping in Phase 1, the treasury consistently increases, ensuring more revenues for the protocol.&#x20;

<figure><img src="https://lh7-us.googleusercontent.com/L8vIueibq0iiXX_icioybYyCtzXjTkWc-Wx2B_tZUlfe2bVw-9SuQLcRWrRZEbDOrWsiPg2r6lEkxPQKvs7T-R1rK2kXEndAGpqKG8eQxZ5KiiCYIMXoiAnNHEMgW8cyF55ziShNjo__xn3k6eNN2mo" alt=""><figcaption><p>Expressed in $QE / epoch</p></figcaption></figure>

This increasing treasury allows the protocol to redistribute the accumulated reserve consistently during Phase 3 without having to use inflation, to support community initiatives and the development of the protocol.&#x20;

<figure><img src="https://lh7-us.googleusercontent.com/FrXww4NPoeGoPYsOybEQII9Dih3z-UsB0odwbTMgtK2TwdATQISpoqF5tvzp16qsXWISiI4NEvdG4OHx5I002x5HKpBAewWan8eGaEwAf1uZ6oDi6_onfdO87S0HwV00HlDEwFLf5eyTkcBazVb0u7Y" alt=""><figcaption><p>Expressed in $QE / epoch</p></figcaption></figure>

<figure><img src="https://lh7-us.googleusercontent.com/TqijlmdLh79Cln4936Rih21RcNotD619x2bISaXLtf1KYBV7wqtmz2XktS7aXj1FXgkDsl9B1gRPn-D0dUxNxF0YWv2ysmKv_Fbg4TaDkJG6c3sDHcLSbxf95vSlg7pn-Ki-nOKWprrrHrvXy5o5FtY" alt=""><figcaption><p>Expressed in $QE / epoch</p></figcaption></figure>
