MOJOIP#3 - Switch strategy from growth to yield farming

INTRODUCTION The Mojomix DAO is gathered to vote on the improvements proposed on the last monthly report, denominated Mojomix Improvement Proposal #3, or simply MOJOIP#3

CONTEXT Due to the current market downturn, a substantial improvement to the portfolio strategy is proposed. The rationale of the proposal is to reduce price volatility and collect systematic, predictable and recurrent yields. Yields are rather predictable but remain highly variable, according to dynamic trading volumes, liquidity concentration and manual adjustment of the LP price range.

The proposal includes the following changes:

• Portfolio simplification to 3 basic assets: WETH, WBTC and USDC
• Portfolio allocation: 1% WETH for gas fees, 39% free-floating USDC for withdrawals and rebalancing, 60% Uniswap V3 WETH/WBTC pool for yield generation.
• Systematic portfolio rebalancing every time a +/- 20% deviation from the initial distribution is hit. (e.g. when USDC is 18% and Uniswap V3 WETH/WBTC is 81%, or when USDC is 60% and Uniswap V3 WETH/WBTC is 39%)

The risks associated with the new strategy are:

• WBTC / WETH market price volatility (which affects pool AUM + rewards value)
• Smart contract risks related to Uniswap V3 (contract security audit https://github.com/Uniswap/v3-core/blob/main/audits/tob/audit.pdf)
• Smart contract risk related to Enzyme protocol (contract security audits https://github.com/enzymefinance/protocol/tree/v4/audits)

Despite the strategy update, the long term objective of the vault strategy remains unchanged, which is to generate a performance higher than simply “holdling” BTC.

For the full video explanation please see

English: https://youtu.be/m0YeJwuI1X8 Spanish: https://youtu.be/kZy4ehAJ4A8

VOTE TYPE The vote type is simply FOR / AGAINST / ABSTAIN

DEADLINE The deadline for submission of your vote is 26 June 2022, 23:59

HOW TO

• Connect your metamask wallet to the snapshot space
• Join the Mojomix DAO space
• Select the desired answer
• Validate by signing the transaction with your metamask (gas free)
• Voting power is equivalent to the % of ENZF tokens held in your wallet relative to the overall token emission.

OUTCOME The outcome of this decision will be determined by the simple majority at the end of the given voting period. 51% is required in order for the proposal to get ratified.

IMPLEMENTATION
If approved, the implementation of MOJOIP#3 will take place before 30 June 2022, 23:59.