We came, we saw, let's conquer

Dear Chads,

I hope that you are thriving as you are reading this.

This is the first proposal that I am writing since a long very time, maybe in forever, and I think it is fitting, because I believe that this round of proposals may be one of the most important ones that WSC will have to think about, for it will determine the future of WSC and therefore our future and the future of our children, who depend on us making the right decision and conquering this planet.

I won’t rehash what has happened this past year. There is no need to, we all know it, felt it, some of us more deeply than others, so let me get straight to the point.

The investing strategy that has been implemented this past year has had mixed results. Mixed being a euphemism. This was partly related to the fact that the crypto markets have taken a downturn but it would be foolish to think that these results were also not related to the specific assets that were selected, the asset classes that were prioritized, and the naive strategies that were implemented.

This proposal, my sweet children of Saturn, is written in order for us to restructure the investments of WSC. As such, it introduces one major change and a number of more minor changes, which involves a refactoring of the existing asset classes that WSC invests into.

Let’s start with the big shift.

Some of you have already made a fortune in crypto last year. This was the product of hard work, persistence, and market conditions, which injected a lot of funding into the market. We are now in a different market, which holds its own sentiment, and my hope is to devise strategies that 10x, 20x, 50x the treasury within a year or two years, which I believe is possible, but not possible if one follow the more standard means of investing. The usual means that many have endeavored were to invest in some kind of coin with some level of liquidity or a number of NFT collections, analyze the team, predict a potential increase in the value short term and long term, and then make the necessary, graceful exit. Without heavy due diligence into the hundreds of crypto projects that may arise, I am not sure it is possible to execute such a strategy at scale with the current limited amount of ChadPower. More importantly, I do not believe that this is a strategy that would allow us to multiply the treasury in any significant way - significant here being a 10x-200x, insignificant being defined as 20% or below, which I am fully aware is already considered to be a great return in many circles.

For this reason, the first shift that I am proposing is to take a specified amount from the treasury and invest it into various automated bot strategies, which would take advantage of different market conditions, new protocols, and new narratives.

I understand that this may be abstract, so what does this mean?

Based on my research, there has been a proliferation of Layer2 blockchains in recent years, These are called L2s and generally encompass rollups such as Arbitrum, Optimism, and other zero knowledge ones such as ZkSync. Within those ecosystems, there has been a proliferation of projects: new perpetual protocols, new gaming protocols, new lending protocols, and new NFT marketplaces which all have specific characteristics that can be leveraged to generate returns at scale. For instance, Optimism grew to a TVL (Total Value Locked) of $1.2B last year, ZkSync grew to a TVL of $60M this year, and Arbitrum grew to $3B more recently, briefly surpassing Ethereum MainNet in terms of transaction amount last week. For these reasons, many believe, across the crypto sphere, that there will be mini boom cycles dictated by these growing L2s, who are building, shipping, and iterating consistently, as a number of them have received $100M+ in Series A funding from some of the most prolific venture capitalists in the space.

My proposition is that to take advantage of the growing amount of traffic that these L2s are generating and devise specific automated strategies, custom tailored to each protocol that is deemed interesting (which are all attempting to remain competitive to attract a new user base) in order to grow the treasury.

For instance, an automated strategy that could have been run last year and which would have been profitable would have been to use the treasury available to interact with a layer 2 rollup such as Optimism, interacted with some of the dApps and bridges, thus providing valuable data to the teams building in these ecosystem, and more importantly would have qualified us for a number of airdrops. As a specific example, dYdx netted some Chads almost $120K in airdrops and interactions within the Optimism network and protocols through our existing wallets with only $2.5K-$5K could have also allowed us to be rewarded with a range from $25K to $50k.

And that is only one example. Other opportunities of automated strategies in the ecosystem include arbitrage bots, MEV bots, and many more. A more recent opportunity that I saw is NFT sniping, in which a bot is set up to automatically buy an NFT that is well below floor of a stable, successful, and famous NFT collection.

What is proposed today is to divide the treasury. That half of the treasury goes towards these automated, R&D, strategies and that the other half go into manual investments. For the latter half, the second part of the proposition is that the existing investments should be refactored and that there is a restructuring of investment criteria:

1. It seems that most of the ERC-20 tokens, except 2 are in total loss. My propoposition here is to cash out on these positions, decide on a percentage, and allocate a portion to blue-chip assets, which have higher chances of holding their value or appreciating, or which give us other qualitative benefits within the crypto ecosystem, which WSC may benefit from. E.g. Access to the MAYC or BAYC community can give us access to future airdrops by Yuga Labs, access to private alpha groups, etc.

2. My second proposition is that a portion of that is set into a short-term wallet, which will be managed by a number of individuals in the Chads community, all voted by you. This wallet would be dedicated to scalping and more medium term plays. There is also the option here to decide to invest into the stock market. For this one, the requirement is that WSC is incorporated, which will ensure that everything is done properly, legally, but also to ensure that these assets are secured and that no one can disappear with them.

3. It seems like a lot of the strategies that were implemented did not have the necessary risk protection mechanism in place. The LitePaper should be rewritten to include that every new manual investment proposal should have stop loss and take gain percentages or points set, so that one can close the position quickly and automatically if a token were to free fall or more unexpected events take place.

4. In order for all of this to happen, we would also have to allocate a small fraction of funds (2-4 ETH) towards operating expenses, such as legal fees, server costs, SaaS fees, etc.

In terms of the other half of the treasury, what I am proposing is that it becomes dedicated to R&D and these automated strategies that I mentioned prior, as I said. I have very specific strategies to share, which I’ve spent dozens of hours researching and I believe can be implemented. Based on said research, I think that these would give the highest chances of returns. More importantly, they are strategies within which the risks and losses are capped at 10-20% while the potential multipliers are 10x-25x.

There is a lot of great opportunities in crypto but most of the larger players that appear out of nowhere who run profitable strategies do not usually do so manually. Some groups I’ve noticed, for instance, scalped NFT collections they believe were going to be valuable pre-mint and sold them at mint, profiting across 100 NFTs within a day by selling them back within the market. I am not condoning that specific strategy, what I am attempting to underline is that these forms of calculated, in a very literal way, risk seem to be the ones that should be entertained. They will take more technical work but they will also allow more Chads that are coders to participate in the creation of these strategies and therefore partake in their profits, while also multiplying the holdings of the treasury.

If you gentlemen agree to these new separations, there will be a few important things that need to happen to move forward:

A) An incorporation will be required, which will provide more transparency and protection

B) The lite paper / white paper of WSC would need to be rewritten and new terms would have to be agreed upon in order to ensure ensure that everything is done well, that everything is inscribed into law, which will protect all of the existing Chads and this community.

Thank you for taking the time to read this.