Overview This proposal seeks community approval to allocate 75 million PLS from the Treasury to purchase and hold H0X, leveraging its recent performance and potential to enhance the growth of the Treasury's PLS holdings. This investment aims to capitalize on H0X's outperformance of PLS during previous market conditions and its demonstrated capacity to amplify returns when paired with PLS.
Rationale The strategic investment into H0X is based on the following observations and analysis:
Past Performance: During a recent PLS pump, H0X outperformed PLS by 51%. Had this trade been executed previously, the Treasury’s PLS holdings would have grown by 50%, aligning with our goal to maximize PLS rather than USD value. When the community established an LP with H0X, the asset’s price increased from an average of $22–$24 per coin to $43 during a shortterm pump, showcasing its growth potential.
Current Market Opportunity: PLS and H0X have experienced pullbacks, creating a potential buying opportunity to acquire H0X at favorable prices. Investing during a market pullback can position the Treasury to capitalize on a subsequent recovery or market rally.
Strategic Alignment: This investment supports the protocol’s goal of growing Treasury assets in ways that minimize risk while maximizing compounding effects. Proposal: Trading Arm - Allocation of Treasury Funds to H0X Coin 2 By converting a portion of PLS into H0X, the Treasury can diversify its holdings with the aim of acquiring more PLS.
Proposed Action
Allocate 75 million PLS from the Treasury to purchase H0X.
Hold the acquired H0X until a subsequent proposal is submitted and voted upon for the timing and strategy for selling or further utilization of the asset.
Monitor H0X’s performance against PLS to evaluate the success of this trade and identify future opportunities.
Risk Considerations While H0X has demonstrated strong past performance, investments carry inherent risks. Factors to consider include: Market volatility of both H0X and PLS. The potential for prolonged market pullbacks. Liquidity risks in H0X, depending on market conditions. To mitigate risks, ongoing evaluation of the H0X investment’s performance will be conducted.
Call to Action Community members are encouraged to:
Thank you for your time, engagement, and consideration. Let’s work together to achieve the protocol’s long-term success