# Active Treasury Management The goal of Lydian is to accumulate a healthy mix of assets in its treasury. We want to own **USDA as a stable backing asset** for future rebases which makes up our RFV. We also want **LDN-UDSA LP tokens to ensure** that the Lydian token always has enough **liquidity** for users to enter and exit our guild. One thing the Lydian governance process needs to converge on is the **balance between backing assets** used to extend the project runway for rebases **and the capital used to deploy in farming** strategies. This ratio will be an important parameter to manage. ![](/files/DyoDbAuBmR7JhQUC5bO3) DeFi on Stacks is still evolving and the amount of functional protocols is currently still quite limited. We've chosen Arkadiko as an initial protocol to partner with and to host our initial liquidity pool. The main goal for the treasury is to generate returns on capital. We could do this by deploying capital in yield farms, incubating new protocols and helping them with initial liquidity or by providing Keeper services. The Lydian token will function as a governance token and the governance process will ultimately decide which farming strategy is followed and the amount of capital deployed. The Lydian team will continuously scan for opportunities and keep track of new protocol launches. After a risk assessment, governance discussion, proposal and vote, the new opportunity could be added as a new farming strategy. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.lydian.xyz/what-is-lydian/active-treasury-management.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.