CIP039 - Bear Market Defense Strategy Pt 2
We've tossed around the idea of converting Qi/WMATIC to either a pair that is less exposed to market conditions (like ETH/USDC), or outright converting to stables as another bear market defense strategy.
I propose instead to convert our TetuQi/Qi LP to stables. It has an asset on both sides of the LP that is vulnerable to large price swings, and if the market goes really bad, we can be sure that both Qi and especially TetuQi will take an absolute pounding. It's currently only earing 60% on Penrose, even less than our Qi/WMATIC, and it's a riskier pair. If any part of our treasury is going to be "hardened" against a potentially worse bear market, this seems like the prime candidate.
I know we just voted to pair the TetuQi up to Qi and put it on Penrose, and I know the TetuQi peg is not 1:1 for Qi, which is why we haven't sold it like we wanted to. The peg hasn't gotten much better or worse, and it's possible that BOTH tokens could be worth much less than they are now, so I think stablecoinifying them now makes the most sense, while we are in this short rally.
The LP is worth something like $25K right now. Should we convert to MAI/USDC or not?
Off-Chain Vote
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- Author
0x4122…664E
- IPFS#bafkreif
- Voting Systembasic
- Start DateJul 29, 2022
- End DateJul 30, 2022
- Total Votes Cast73.19K vCLAM
- Total Voters6
Timeline
- Jul 29, 2022Proposal created
- Jul 29, 2022Proposal vote started
- Jul 30, 2022Proposal vote ended
- Oct 26, 2023Proposal updated