A Digital Asset Treasury (DATs) for Ethereum
Mon Feb 02 2026
Summary
In this episode, Clouted from ETH Strategy speaks with Peter Abilla and breaks down how they are trying to build an autonomous, on-chain “investment bank” for Ethereum. He walks through how Michael Saylor’s use of convertible notes inspired their structure, why volatility is the raw material for the strategy, and how the protocol aims to grow a large ETH-denominated treasury over time. We talk about execution risk, product market fit, and why everything has to be transparent and market driven. Clouted also shares his core bet that ETH will trend up over the long run and how ETH Strategy wants to package that view into a set of on-chain products powered by volatility, leverage, and clear governance.
Takeaways
— ETH Strategy’s goal is to become a decentralized investment bank built around Ethereum.
— The design borrows ideas from Michael Saylor’s convertible notes playbook and applies them on-chain.
— Volatility is not a bug, it is the core input the protocol tries to monetize.
— The protocol wants to open up volatility and treasury-style strategies to regular DeFi users.
— Execution risk, both technical and organizational, is one of the biggest challenges.
— The core thesis is that ETH appreciates over time and the system is built around that long-term trend.
— Radical transparency is required so depositors can see and judge every move the strategy makes.
— ETH Strategy aims to keep shipping new on-chain financial products around ETH and volatility.
— The long-term vision is a large ETH treasury and growing earnings per share for the STRAT token.
— Market signals, not committees, should guide how the protocol evolves and allocates capital.
Chapters
(00:00) Introduction to ETH Strategy
(01:18) Understanding the protocol’s foundation
(06:04) TradFi playbooks versus DeFi-native design
(09:50) Mechanics of ETH Strategy’s treasury
(15:15) The vision behind ETH Strategy
(19:45) Current treasury holdings and future outlook
(21:37) Governance, control, and strategy shifts
(24:10) Finding product market fit in crypto
(27:30) Why transparency matters in vault strategies
(27:54) Core assumptions behind ETH Strategy
(30:34) Understanding execution risks in DeFi
(32:29) The role of volatility in ETH strategies
(34:40) Evaluating Ethereum Layer 2 environments
(38:47) ETH as a long-term store of value
(40:59) Innovating ETH strategies for better yield
(46:53) Vision for ETH Strategy over the next 12–24 months
Follow me @papiofficial on X for upcoming episodes and to get in touch with me.
Watch these interviews and subscribe on Youtube Block by Block Show.
See other Episodes Here. And thank you to all our crypto and blockchain guests.
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Summary In this episode, Clouted from ETH Strategy speaks with Peter Abilla and breaks down how they are trying to build an autonomous, on-chain “investment bank” for Ethereum. He walks through how Michael Saylor’s use of convertible notes inspired their structure, why volatility is the raw material for the strategy, and how the protocol aims to grow a large ETH-denominated treasury over time. We talk about execution risk, product market fit, and why everything has to be transparent and market driven. Clouted also shares his core bet that ETH will trend up over the long run and how ETH Strategy wants to package that view into a set of on-chain products powered by volatility, leverage, and clear governance. Takeaways — ETH Strategy’s goal is to become a decentralized investment bank built around Ethereum. — The design borrows ideas from Michael Saylor’s convertible notes playbook and applies them on-chain. — Volatility is not a bug, it is the core input the protocol tries to monetize. — The protocol wants to open up volatility and treasury-style strategies to regular DeFi users. — Execution risk, both technical and organizational, is one of the biggest challenges. — The core thesis is that ETH appreciates over time and the system is built around that long-term trend. — Radical transparency is required so depositors can see and judge every move the strategy makes. — ETH Strategy aims to keep shipping new on-chain financial products around ETH and volatility. — The long-term vision is a large ETH treasury and growing earnings per share for the STRAT token. — Market signals, not committees, should guide how the protocol evolves and allocates capital. Chapters (00:00) Introduction to ETH Strategy (01:18) Understanding the protocol’s foundation (06:04) TradFi playbooks versus DeFi-native design (09:50) Mechanics of ETH Strategy’s treasury (15:15) The vision behind ETH Strategy (19:45) Current treasury holdings and future outlook (21:37) Governance, control, and strategy shifts (24:10) Finding product market fit in crypto (27:30) Why transparency matters in vault strategies (27:54) Core assumptions behind ETH Strategy (30:34) Understanding execution risks in DeFi (32:29) The role of volatility in ETH strategies (34:40) Evaluating Ethereum Layer 2 environments (38:47) ETH as a long-term store of value (40:59) Innovating ETH strategies for better yield (46:53) Vision for ETH Strategy over the next 12–24 months Follow me @papiofficial on X for upcoming episodes and to get in touch with me. Watch these interviews and subscribe on Youtube Block by Block Show. See other Episodes Here. And thank you to all our crypto and blockchain guests.