> For the complete documentation index, see [llms.txt](https://waceo.gitbook.io/waceo/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://waceo.gitbook.io/waceo/waceo-token/treasury./reserves-treasury..md).

# Reserves Treasury.

The Reserve Treasury is the primary vehicle of deploying Monetary policy. 

It is constituted of two things:  *the diversified set of decentralized projects assets allowing the formation of diversified backing mechanisms*, and *protocol owned liquidity*.\
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These reserves allow the WACEO to effectively defend the price level and improve liquidity of the WACEO token.