FAM Collateral Strategy Proposal

We propose utilizing $300,000 of the USDC in our FAM treasury for the purpose of earning additional yields through investments.

Options on the Harmony network are limited, but CURVE and Tranquil both offer attractive yields. These yields would help to bolster the FAM treasury.

1. Curve tricrypto 26.1% APR

The Curve tricrypto pool offers 26.1% APR as of this proposal, while the 3pool offers about 11.5% in returns. It should be noted that while being very attractive the tricrypto pool carries substantially more risk in comparison to 3pool.

tricrypto is composed of multiple assets including wBTC and WETH that have a risk of volatility and a possible negative return on investment. 26.1% APR would result in approximately $6,525 monthly or $78,300 per year. Keep in mind that this pool pays rewards in WONE, which suffered a substantial correction, so when markets recover the earnings could result in a much greater gain for the treasury.

2. Curve 3pool 11.5% APR

3pool is only stablecoin composed. Our investment there would result in approximately $2,875 monthly or $34,500 of returns per year paid in WONE and CRV.

3. Tranquil 10.87% APR

This logic also applies to TRANQ rewards earned through Tranquil lending platform. Tranquil’s 1USDC market is currently offering 10.87% APY for supplying USDC. 10.87% translates to approximately $2,717 monthly or $32,610 per year with much room for appreciation.

**It should be noted that these returns are accurate as of the time of this proposal. The rate of returns can vary. **All changes will be enacted immediately.

Vote for the following options:

1. Curve Tricrypto 26.1% APR
2. Curve 3pool 11.5% APR
3. Tranquil 10.87% APR
4. Do not invest 0% APR

Snapshot time: 14/12/2021 3PM UTC Vote start : 14/12/2021 5PM UTC Vote end: 15/12/2021 5PM UTC