Please review the attached google doc for in depth details and complex analysis of all proposed options.
In summary:
Option 1: Target stable allocation goes up and down with the market, as determined by governance. Rebalancing determined on an investment by investment basis. This option is working towards future utility having a complex market health/threat meter the community helps develop.
This option is fairly easy to implement, but to expand and develop it will require effort and focus.
Option 2: Target stable allocation locked at a set rate determined by governance. Rebalancing determined on an investment by investment basis.
This option is easy to implement and manage.
Option 3: Stable allocation is locked at a set rate determined by governance, with a +/- buffer%. Rebalancing is enforced through a profit-taking formula. This option is an investment in future utility developing a profit-taking formula that is complex enough to survive crypto trends and accommodate complex investment mechanics.
This option is very difficult to implement and has higher development costs to achieve maximum potential.