DCA For Scaling Treasury with Yield Intent (Part 2)

Proposal Type: Resource

Creator: YuurinBee

Relic Type (Optional): Archmage

Overview: This proposal is an extended version of the previous proposal by Adrian titled "DCA For Scaling Treasury with Yield Intent", as discussed in the Discord with the DAO.

The Market and P2E sentiment is currently at an extreme low (all time low since the high). If the current sentiment continues, our monthly yield rewards will be drying up very quickly as there aren't enough activities generating positive yield on a monthly basis. I would like to present a semi-low risk strategy during these market conditions for the DAO to consider in order to grow our treasury for the long-term as well as potentially generating additional yield for MAGE Relic owners.

Additional Details: As BTC is below $20k and ETH barely above $1k, I believe we should start discussing in what range we should DCA some BTC, ETH, MATIC, etc... to add to the DAO Treasury for the next bull cycle. I would suggest $130k to be considered with a potential split between different top currencies.

With this strategy, the purpose is to trade and earn profit off the volatility of the market by accumulating in different ranges as the token hits its highs and lows in the daily range. For example, within the 4 hour range of BTC there is usually a price difference of $500-2k. The goal would be to find favorable entries and take the profit from low to high as often as possible. This should result in two possible outcomes:

If the currency drops even lower after the purchase, that buy order would be considered as a DCA order that gets added to the DAO Treasury for long-term appreciation.

If the currency appreciates after the purchase, the profits realized would be accumulated for the purpose of expanding yield generating opportunities. This could mean a side pool for high risk, high reward investments that are deemed time-sensitive without proposals and approval or injected as monthly buybacks when deemed favorable.

Timeline: On-going, until later decided by the DAO.

The intention of this investment would be for growing the DAO Treasury, but at any time the DAO can vote and decide when to liquidate assets for yield if it makes sense to do so.

For example, using easy numbers for reference... the DAO puts $300k into BTC at $10k per BTC. If BTC does a 5x to $50k, the DAO's $300k would be worth $1.5m. At that time, if the DAO votes and wants to start harvesting profit, say $200k for the end of month's buyback, $500k of BTC would be sold so that the initial $300k would be returned to the DAO Treasury's liquid capital with $200k left to be used for buyback. The DAO ultimately votes and decides when it wants to liquidate assets and how the profits should be utilized.

Additionally, say an investment opportunity comes up and the DAO decides we need some liquid capital, we can vote to sell X to get $Y to fund Z.

Investment Scope: a. $130,000 worth of Stable to deploy into BTC/ETH/MATIC b. As assets appreciate long-term, exit timing decided by DAO

Receiver: MetaBrands Treasury

Final Notes: The executor of this proposal requests to be compensated with a 15% performance fee on all profits generated for trading and management (Outcome 2). This is only applied for generated profits, not for deploying funds to DCA. For example, if $150k is approved for DCA and by the end of the month, we are able to earn $30k in profit, 15% of $30k or $4.5k would be owed as compensation to the executor. If the full $150k is deployed to DCA with no profits generated, no compensation will be given.

Executor: YuurinBee