unidao / Fund-Allocation-Proposals-UIP

Fund Allocation Proposals (UIP)
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Fund Allocation Proposal #8 #1

Open leomorozovskii opened 4 years ago

leomorozovskii commented 4 years ago

03 December 2019 REVIEW

One of the potential investment strategies for DAO funds can be having exposure on ETH fueling Ethereum blockchain ecosystem and supplying to Compound cETH contract

GOAL Using ETH to gain exposure on growing Ethereum Ecosystem and supplying to Compound for using leverage position

Technical details Compound.finance is decentralized financial application providing real time money market on digital assets.

**Strategy description:

Parameter Value Comments
Transaction type spot spot tradederivative trade
Assets ETH ETH/DAI
Direction long longshort
Amount of Assets 70% (10% each month DCA) Max amount limit, determined by the amount of MRR (% of AUM)
Margin 1x 1x2x3x
Thesis / Rationale Ethereum will be upgraded to prepare for Phase 2 scalability and create additional demand on ETH for staking on beacon chain network, plus DeFi demand is rising  
     
Execution price ≤148,15 For ex. ≤ 310 DAI per ETH
Target price 250 For ex. 500 DAI for 1 ETH
Expected return, (%) 68,75%  
Expected return, annualized % 137,50%  
Duration 6 months
Take Profit $250 ? y/n, partially / fully?
/ Stop Loss $120 ? y/n, partially / fully?
Execution platform Kyberswap.com Decentralized exchanges
     
Expected return E(Rp) 30,26% Month
Strategy Risk, return volatility 𝞂p 67,56% Month
Sharpe ratio Rp − Rfσp 0,53 Month