(p5-1) Treasury allocation: what strategy/strategies should we pursue?

Ave!

As we discussed before, the current APY should not be a priority when choosing a farming strategy, rather the long-term perspective of a token and therefore long-term APY should be considered when making a decision.

After several weeks we have seen several strategies and allocation methods. Now we suggest choosing the strategy/strategies first, and then voting on the funds’ allocation (ie how much percent of the overall funds go to the certain strategy)

We want to do such a vote every month, to allocate newly farmed tokens and rebalance the fund.

The voting will start at 6pm, and will last 1 week (so the results will be given next Monday).

https://scattershot.page/#/synthereum.eth/proposal/Qme3EN5AHgRS4Sk1Yjwu689uPu1sbsCcsBkJ55czLMF6jj

The top 3 choices will go for the 2nd vote where we will discuss proportions.

Strategy 1
SushiSwap
(23% in Sushi + trading fees)
Mcap-2,2Bil; FDV-3,6Bil
Action: Sell 50% UMA for ETH supply liquidity on SushiSwap
Future: stake Sushi for xSushi (5% APY), which could be deposited on Aave and used to borrow assets
*2/3 of the rewards are locked for 6 months

Strategy 2
Alpha Homora x1 leverage
(38.50%)
Action: Sell 50% UMA for ETH and supply ETH/UMA on Alpha Homora
(ETH/UMA will be LPed on SushiSwap, Suhsi will be automatically sold for ETH and UMA)
Future: treasury will increase its position on UMA and ETH

Strategy 3
Alpha Homora x1.5 leverage
(70.45% incl 16.8% in Alpha token)
Mcap-544Mil; FDV-2,1Bil
Action: Sell 50% UMA for ETH and supply ETH/UMA on Alpha Homora with x1.5 leverage
(ETH/UMA will be LPed on SushiSwap, Suhsi will be automatically sold for ETH and UMA)
Future: treasury will increase its position on UMA and ETH + Alpha token can be staked to unlock higher leverage
*Liquidity mining program will last till 12th of May

Strategy 4
Alpha Homora x1.75 leverage
(86.29% incl 25.15% in Alpha token)
Mcap-544Mil; FDV-2,1Bil
Action: Sell 50% UMA for ETH and supply ETH/UMA on Alpha Homora with x1.75 leverage
(ETH/UMA will be LPed on SushiSwap, Suhsi will be automatically sold for ETH and UMA)
Future: treasury will increase its position on UMA and ETH + Alpha token can be staked to unlock higher leverage
*Liquidity mining program will last till 12th of May

Strategy 5
StakeDAO Passive EUR
(70.52% including 25% in SDT)
Mcap-44-Mil; FDV-567M
Action: sell UMA for eurs and seur, deposit on stakeDAO ‘strategies’, and redeposit on ‘LP farming’ to maximize returns.
Future: SDT tokens can be staked for an additional 29.65% APY + accumulated SDT could be used to participate in StakeDAO governance.

Strategy 6
Aave DAI, USDT, or USDC
(3%-20% + 4%-7% in stAave)
Mcap-6,1Bil; FDV-7,7Bil
Action: sell UMA for one of the stabecoins and deposit on Aave.
Future: stablecoins deposit can be used to borrow other assets and participate in other strategies + accumulated Aave could be used to participate in Aave governance.
*Liquidity mining program will last till 15th of July

Strategy 7
Jarvis Farm
(N/A)
Mcap-20Mil; FDV-95Mil
Action: Sell UMA for USDC and jFiat, participate in Jarvis Farming
Future: Treasury can accumulate JRT (do not mix with the JRT for rewards) which could be used to ming jFiat.

Strategy 8
Alchemix
(CRV+EPS)
CRV (Mcap-973Mil; FDV-10,9Bil) ESP (Mcap-353Mil; FDV-3,2Bil)
Action: Sell UMA for DAI, mint alUSD (50% of the deposit), use alUSD to buy CRV, stake CRV for 4 years.
Future: Accumulated CRV could be used to participate in Curve governance.
*Alchemix allows us to get the future yield upfront therefore we can risk this money