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Fund Allocation Proposals (UIP)
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Fund Allocation Proposal #10 #3

Open leomorozovskii opened 4 years ago

leomorozovskii commented 4 years ago

28 February 2020 REVIEW

One of the potential investment strategies for DAO funds can be having exposure on ETH fueling Ethereum blockchain ecosystem

GOAL Creating a structured product with 80% allocated to the product with fixed income and 20% allocated to high risk leverage product (LONG 5x ETH)

Technical details Protocols used: Compound (fixed income), Ddex.io (leveraged product)

**Strategy description:

Parameter Value Comments
Transaction type spot spot tradederivative trade
Assets ETH DAI
Direction long longshort
Amount of Assets 10% Max amount limit, determined by the amount of MRR (% of AUM)
Margin 5x 1x2x3x4x5x
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 ≤225 For ex. ≤ 310 DAI per ETH
Target price 350 For ex. 500 DAI for 1 ETH
Expected return, (%) 250%  
Expected return, annualized % 274%  
Duration 9 months
Take Profit $350 ? y/n, partially / fully?
/ Stop Loss $198 ? y/n, partially / fully?
Execution platform ddex.io Decentralized exchanges
     
Expected return E(Rp) ~30% Month
Strategy Risk, return volatility 𝞂p 15% Month
Sharpe ratio Rp − Rfσp - Month
leomorozovskii commented 4 years ago

UPDATE

DDEX exchange doesn't work with Aragon Agent, execution of 5x margin trade is impossible.

The strategy was executed with MakerDAO Vault creating 2,6x leverage with liquidation price $207

Expected return and risk should be lower