We should be trying to diversify current asset holdings beyond AVAX and LP’s. In my opinion I think we should be allocating funds to a broader basket of assets, such as Mirror Stocks, Blackpool (NFT Hedge Fund) and a basket of tokens from supported networks such as Fantom and Ethereum.
This should make the treasury more robust longer term and help the protocol achieve its ambitions of being the Blackrock of DeFi.
Open to suggestions for assets.
Didn’t we just sell a bunch of Avax before the dip and buy into BTC and Eth at a good price?
I believe we have several assets outside avax including wbtc and weth in the treasury wallet might check zaperfi. I know we have a majority of mim and ust to maintain stability aswell as a few others to increase potential for growth outside yeald farming
James I have a few questions:
Do you have any experience in treasury management? I sure as fuck don’t.
Do you have any idea what the composition of our treasury currently is? I kind of do… and I also know that Dani n Sifu keep fucking G.O.A.T.ing our treasury comp by front-running market changes with their unparalleled alpha.
Can we not try to mess up a good thing?
I second this point great point maybe we should put a proposal to guarantee sifu and company autonomy so it is dao official
Completely agree. We are way too weighted to our own ecosystem and instead should diversify to keep the treasury price as stable as possible. Not only could this mean limiting treasury assets to say the top 5 cryptos, or layer 1s at least, but should also expand into real world assets that are nowhere near as volatile as cryptos.
@James good suggestion. the purchase of Cvx was a solid purchase but theres a lot to be made i feel with the Popsicle LPs especially because those rewards are automatically looped. The TIME-AVAX LP is super important to keep open because you need that open door for current and potential time holders and also the treasury being 1/3 time amplifies the MIM value in the treasury from 350 mil to 525 mill, guaranteeing the minimum backed price of 1300 even if the entire crypto market falls to 0.
I feel like LPs are the nuts and ham of Time Wonderlands profits. they bring solid, consistent profits which back Times price while also keeping liquidity available for traders. Maybe cross-chaining to stable coins on networks that work on Fantom, Eth and others could be a compromise that achieves both goals. they are themselves bits of different currencies but stable ones so there is well…more stable value in the backed price. and diversified like you pointed out which is amazing.
I feel like one thing to do is pop into some money into ice make some nICE, and throw some money into the ($ to weth) 129% (spell to weth)171% (ice to weth) 239% (shiba to weth) 130% LPS to make some serious returns and give more liquidity to the projects that are our internal projects. specifically the ones that give the treasury the biggest returns.
another big thing to do maybe is pop money into other projects that are backed by stable coins for when the market is tanked we have a bit of extra built in stability but also room for growth. plus theyre concentrated LPs so theres a ton more liquidity available at the best rates.
What do you think? like about the compromise idea. investing in stablecoin LPs that bridge to phantom and Eth so that we do diversify and open a gate way to those other projects to wonderland, but were also gaining $$ on those LP fees. maybe not limit ourselves to ones that bridge to TIME idk. but definately stick to the stable coin LPs. Id love your opinion and anyone elses @The-owl @ripgd ?
how do we find out about treasury actions ?
How are we too weighted to our own ecosystem?
From the looks of things we are progressively diversifying as more funds enter the treasury. I believe sifu is staging each step to move further into other chains aswell as providing the safest trades and the highest apy he can negotiate we are getting into some really big numbers. There is alot of navigation needed and pushing for steps that arnt already stated in the short run might cause larger stability issues than it solves. I agree diversification is essential but I think I see where the team is going and it looks like it will be solid in the long game @Thegreasemachine
@The-owl w much liquidity is there in the crypto world rn? I’m doing a tally and so far including pangolin (227) , sushi(1.458) , trader Joe (1.365) and uniswap (2.55) there’s barely more than 5-6 billion in liquidity in the major markets (please correct me if I’m wrong or missing sites and networks in this calc) in the treasury there’s maybe 452 million in liquidity. Given our current rate of growth of like x10 every 2 months or so do you think we’ll gobble up all the stable coin LPs in the market by the time we take over sushi swap (like 2-3 months) or will it take a little longer? And how big do you think the treasury will need to be so popsicle will be able to open up lots more LPs to cross to harmony, terra, phantom, and whatever else I’m forgetting? 5 billion? 10 billion? Each network is shaping up to tailor to its specific platform use. Dani said today in an interview he thinks of all these different networks as different telecommunication companies in different countries and the future is the communication to freely everywhere like it does now in the real world with cell phones and the internet. I think he’s setting popsicle to be the connection point for all these networks. So it’s gotta be a high amount in those pools to support basically the currency exchange of all crypto across all networks
I mean they have stated the goal is to be the black rock of defi so if we can grab that market share why wouldent we? The decentralized gold standard of crypto with a full weave across chains would require alot of liquidity but would be highly lucrative if done right I’m not an expert in the field I don’t know what the price tag is that’s why I support sifu do do the big brain math instead of stressing about how we can build more as it stands right now I see potential for expanding across chains aswell as into fx pairs if we hit a glass ceiling in crypto not to mention keeping cash on hand to take advantage of market pullbacks and distressed projects with large upside potential. But we still haven’t even scratched wide scale adoption of crypto so the room fro growth is still immeasurable at the moment
This is a good idea, though we have to diversify in a manner which makes sense in an economical point of view. As Cascadian pointed out: our treasury is making good profits. So completely basing the DAO on a diversified portfolio might not be the best choice. However some studies suggest to mix your portfolio with high volatility with a part of low volatility to preserve a perfect Risk-Reward-Ratio (Sharpe-Ratio). So it might be wise to diversify our portfolio, yes, but only with a small part (e.g.: 10-20%)
I think as you do that liquidity mining is the most beneficial thing for our treasury growth alongside minting (bonding).
But i don’t think we should only invest by treasury management (which is really good btw), i think we should leverage a fundamental benefit of rebase daos: auto-liquidity
i wrote a post about this, maybe we can accept only lp tokens made by a stablecoin - token pair.
here is the link to my idea called “liquidity program”:
Wonderland Liquidity Program