Flare Finance Strategy Options

Yetis, We have completed our previous vote and executed on purchasing 25 AVAX of SGB (Songbird). Given the aggressive growth potential there we should extend our position and optimize our investment strategy.

We've initially moved our wSGB into Flare Finance's Farm to single side stake for sFIN, and have since shifted to a SGB/CAND(native stable) LP farm for much greater yields.

We would like to double our position there by investing another ~25 AVAX to further increase yield potential.

We also have two options long-term we can take with our investments reward spending (sFIN) on Flare Finance.

1. Optimize for governance tokens (ExFi)

ExFi, the secondary governance token, is currently undervalued 7:1 at the time of writing this versus sFIN ($850,000 sFIN @ 10,000 votes per vs. $11.50 ExFi @ 1 vote per). Votes are able to be delegated, much like we are already doing with the wSGB. This allows for a tremendous opportunity to leverage our optimized sFIN earning to purchase vote power at a discounted rate for passive earning. Until votes per dollar have been grinded into equilibrium, we would continue with this strategy.

• Pros: We are bullrushing into value over shorter term dollar output. exposing us to less overall risk, and safer meta-strategies in the Flare Finance DAO
• Cons: We could be missing out on quicker shorter-term dollar output gains

2. Optimize for basic compounding (sFIN)

Compounding back into highest output sFIN farm(s), this of course would remain a flexible option based on where that farm is. LPs are highest output at the moment, but carry inherent risk of impermanent loss mechanics over a longer term.

• Pros: Dollar for dollar, it would be the best way to watch number go up in the short, and potentially even medium term.
• Cons: We would almost certainly be casting aside the potential for passively earning based on accumulated vote power.

~ Disclaimer: at the time of writing this, we have no idea what the value of a vote is, as there is no market for it currently. ~