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Fund Allocation Proposals (UIP)
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Fund Allocation Proposal #17 #11

Open voronkovventures opened 4 years ago

voronkovventures commented 4 years ago

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Investment proposal: 50% AMPL-WETH Pool 50% AMPL-DAI Pool on Uniswap + Geyser

Update: it is suggested to stake AMPL against YFI and YUSD in Mooniswap + Geyser

Potential profit: 50% in DAI. (300% APR), 10-20 % in ETH (100-200 % APR) Strategy duration : 60 days. Max investments volume: 400$ Min investments: 400$ My “subjective” estimation of

positive outcome probability : 65% (means profit>0%)
target achievement: 60% (means closing position at 10% profit in dai)
('subjective' meaning: based on personal trading\investing experience and my personal gut feeling in a subjective/biased way)

Rationale:

AMPL incentivizes AMPL-WETH pool and there is a high APY for both AMPL-WETH and AMPL-DAI pools. AMPL is a stablecoin with flexible supply, which reacts on market demand, thus while it is volatile now, it is already expected to fluctuate around certain value (pegged to USD in 2019), therefore due to Federal Reserve monetary policy, we can expect that AMPL price will grow anyway due to USD inflation character. AMPL right now fluctuates around 2 usd and may be somewhat overpriced, however potential price correction is compensated by high yields from the UniSwap pool.

Risks&Considerations AMPL is a highly volatile asset now, but its price is not expected to go be,low 1 usd long term, so we have the main risk of 50% loss vs 300 % ROI/APY now.

Execution

Appropriate price level to open position is below 2 usd . We don't buy above that.

Closing Both criteria shou,d be met for the preliminary closing Case 1: APY of any of the pools (or averaged for both of them) goes below 50%

Case 2: AMPL price goes below 1 usd and stays there for more than 2 months

Case 3: Circumstances. Any MRR tokens holder member can initiate voting for closing position at any time.

Additional material: official site: https://www.ampleforth.org/ chart: https://coinmarketcap.com/currencies/ampleforth/ Ampleforth white paper: https://drive.google.com/file/d/1I-NmSnQ6E7wY1nyouuf-GuDdJWNCnJWl/view proposal by @voronkovventures proposal structure by @sergelove