Diversify the Yape Treasury's assets

The core team has discussed diversifying the assets held in the reserve DAI contract. We feel it is unwise to hold such a large amount of stables. The core team believes a market buy of 10k of a single asset (to start) would help us in growing the protocol. The assets that have been mentioned thus far were ETH, OHM, and TOKE. I’d like to open this discussion up to the community and see what other assets people are interested in purchasing.

Personally, I feel that buying ETH would be the most sensible move, but I also see how purchasing a smaller cap token could also be beneficial.

I’ll edit the forum post once the community has reached a consensus through the comments, then send this off for a vote if this is something we all agree on doing.

EDIT:
*Buy 20k in ETH
*Use this ETH and YAPE in the treasury to open pools on uni and sushi
*Pools should have 10k (5k ETH, 5K Yape) so the Yape treasury will hold 10k of the 20k purchased as treasury asset diversification

7 Likes

From a risk management perspective we should likely dedicate a percentage (~20-30%) to a blend of all three.

Perhaps something like:

60% Stables
20% ETH
10% OHM
10% Toke

1 Like

great idea. I’m a HUGE fan of Quant (QNT), ETH and LINK

Great, In order my top three:

OHM: I think the project has giant upside and will continue to have hype in the short and medium term. Moreover, staking apy is still extremely lucrative and will help mitigate any potential losses in price downturns. More importantly, $OHM still performed well and went up even when the market had a downturn during the Summer. Also, since we could hold off on using the 10k and will not be needing the funds in the short and medium term, I feel now is the time to take the risk and go for it. I am a giant believer in the project and believe OHM will be a future 100+ bil mkt cap project. (3,3). In finality, from a marketing standpoint, Olympus has one of the best communities in the space, and there could be much attention and promotional material that could be gained.

Toke: I also believe $TOKE to have great potential and if the market continues to move upward I would not be surprised in $TOKE returning many multiples.

ETH: With less risk, comes less upward potential. Down for ETH over investing and staking in stables but because I feel like we can afford to take the risk and hodl we should allocate to either $OHM or $TOKE.

Cool, so we have 3 likes thus far, need 2 more to send it to a vote. I like CJ’s risk management plan. I would also add that as DAO members we should all be on the lookout for opportunities to diversify our treasury. This forum post partains to our reserve DAI specifically, but I think that we could potentially find other up and coming protocols that are willing to swap native tokens with us. Sumna and I are working on getting the DeFi tokens pools launched. Once we are confident in launching pools we can vote on more changes and new pools.

I like this alot. Maybe we should even consider buying some link, snx, comp, aave when we launch the new pools and have the treasury provide some LPs.

I also think we should consider buying YAPE as there are a few wallets that have accumulated more YAPE than the treasury. The more YAPE the treasury holds the less dumping can occur. We could even buy some YAPE/ETH LP’s. Treasury would earn more YAPE that way, plus it would add liquidity to the pool.

3 Likes

That’s smart. That way we also own our own liquidity. Could we do both in conjunction?

1 Like