Discussions for #p5: UMA token treasury management

Hello !! Thank you for the forum.

What about 33/33/33 :

  • 33% in stable coin as reserve : either jFIAT (+ farming soon) or usdt lend on AAVE

  • 66% in farming (my preference is sushi uma/eth)

It would sell 66% of uma token split into 33% stable and 33% in ETH.

At the end of day, it decreases UMA exposure, offers stability with stable coins, and farm sushi for future reinvestments.
About the fees, it is 2 about swaps, plus one LP+staking on sushi, and one deposit on AAVE or on the future Jarvis farming.

3 Likes

We could allocate each week a percentage of UMA token (1-5%) to traders so they could try to growth this “trader” fund.
We could have different types of traders (short/mid/long term) who trade different types of assets (crypto/forex/stocks/stock market index/…)
And we can imagine that the DAO owns like 80% on this “trader” fund, and the other 20% are for those traders (including benefits or losses).
Something like you did Pascal with DMT and with your best students

Pros : different strategy than stacking so not directly dependant to DEFI results
Cons : maybe difficult to set up

But it would be awesome :slight_smile:

As I’m able to understand, I think I will vote for 4 or 5.
Eventually my preference could be for 6.
I would never vote for a lock of 3 years. Sure.
I will continue to read every comments, trying to understand each point of view.

Good take here. The tokens we farm are more important than the APY. We need to use our treasury to sustain the roadmap. And putting money at work for projects that we want to work later on is a good strategy. I’ll select two tokens we want to have strong ties in the future for an 80% allocation of our treasury. The remaining 20% for a degen mode…

4 Likes

Reading the comments I am in favor of spreading the funds over several strategies. However I think it should be “BIO” farming (growing “solid” protocol tokens that synergize with Jarvis). In order to diversify, I think one should do a strategy up to a cap and then switch strategies.

For example, I am in favor of continuing to farm SUSHI until a TVL of 100k$ and then make a new strategy at each 100k€ to farm other tokens such as CRV (for the LP) or AAVE, COMP (for the collateral), UNI, BNT (same interest as SUSHI), USF (Insurance), the future PARASWAP tokens…

I find the idea of the “trading” background very interesting but a bit premature.

4 Likes

Starting to accumulate CRV as soon as possible seems to be very important if we want to have a powerful DAO in the future. SUSHI is obviously an excellent mid term strategy as well.

Hi,
It is very pleasant to see that at least in the Jarvis crypto world we are really (key !) stakeholder, our governments should take this as a due example…
I do think as MIKALEUS and others that it should be interessant to have always an extra-option “Pascal Choice”, it will fluidize the voting process and decision taking, we are not always concern by all topics of the governance, and if any doubt on the best strategy we can rely on Pascal to do its best for everybody in this project.
Best regards,
Jean-luc P.

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For me it is necessary to continue the current program on Sushiswap.
As soon as the cash flow is sufficient (or if the gas becomes what it was a year ago) we can diversify.
Aave, Curve and paraswap are already on Polygon so a strategy on Polygon could be a good idea as it seems to be the place to be !

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Hi team, :one: prefer Sushiswap because it’s the easiest and usefull, also Sushiswap was one of them to help (Onsen) and trust Jarvis, so go for Sushiswap :wink:
But for the next step with UMA, better to use our own stacking, trading plateform and finally support the JRT Token in StJRT and VeJRT…
Have a good one.

2 Likes

Hey guys, so there were enough opinions that have been shared. Thanks for that. It will be good to summarize all the ideas in a single document (we will do it).

I like that some of you have thought about farming strategic tokens vs looking for high APY. It is a more long-term approach.

Speaking about the APY, when you calculate the APY, you have to consider few things:

  • is the token we are farming can increase a lot in value? a 25% APY will become a 250% APY if the token x10 and we hold them, or stake them.
  • is the token used for farming can lose more value in a year than the expected APY?
  • is this APY sustainable? For ex, if there is a 25% APY on a $100M pool, this APY will most likely remain the same vs a 70% APY on a $1M pool.
  • for how long the program will last?
  • can we reinvest the token farmed in something else or should we sell them?

On my side, this is what I would do:

  1. Accumulate AAVE, CRV, SUSHI, UMA for both the price upside + strategic positioning + all these tokens will be used as collateral to allow the DAO to mint jFIAT and make money with them.
  2. Accumulate stablecoins + jFIAT for being secure (we should not have only volatile asset + we can use stablecoins to trade, farm, etc.

We now have something like $90k:

  1. $39k in UMA-ETH SLP
  2. $27k in UMA
  3. $26.3k in USDC (the other $39K are for paying the rewards of the jFIAT program)

I would say that the SUSHI APY is quite stable, it allows us to keep exposure in both ETH and UMA and to farm SUSHI which is now at 10 USD and FDV of 2 billions USD (vs 31 Billions for Uniswap and 4 billions of Mcap for pancake Swap). I am not saying Sushi will overpass Uni (especially with Uni v3) and they go to their own path with bentobox etc. But I am long term believer, and I do think one day Sushi could reach a 10 bn FDV.

Sushi can be staked into xSUSHI which generates yield + can be used as collateral on AAVE (and if AAVE launches a liquidity mining program, we could benefit from it). We could borrow USDC and use it to be an LP or to mint jFIAT.

So now we have 39k USD in UMA-ETH LP + 27k USD of UMA, so we could have 66k USD worth of UMA-ETH, generating, at today’s price, around 24%. Since we won’t be selling Sushi, and if Sushi goes back to at least 20 USD, it will equal 48%. But let’s assume it will generate 20%.

It could therefore generate something like 13k USD worth of Sushi. If we assume that UMA-ETH will not lose more than 20% until the end of the year, (it makes a lot of “if” :D).

On the $26k USDC left, $13k could be risked on two trades: buy CRV and buy AAVE, or only buy CRV + staked CRV for 4y, to receive EPS token on BSC + 3CRV from Curve. EPS could be staked and locked 3 months (1000% APY) or sold for BNB, and then placed on beefy/autofarm/bunny.

For the $13k left, it could be used to farm ALCX, or mint jFIAT, or use them to become a LP in Synthereum.

The $26k could also be used to borrow $13k alUSD from Alchemix, and use these $13k to buy CRV.

The main idea here is to risk upfront yield

12 Likes

For my part, I think we should really position ourselves on the CRV.
One way or another

i think accumulate xsuchis, UMA and Aave is a good idea.
Use it as collateral on Aave to farm Jfiat but with a very good health factor.

2 Likes

A token that can be farmed and that I find nice for an evolution of jFiat is POOL (from Pooltogether). I think this protocol is fun and accessible for newcomers.

1 Like