Proposed Assets and Weighting of Macro Hedge ETP
This voting proposal is for determining the assets and weighting of the ETP#2 (Macro Hedge). If you agree, you agree to the details of this post: https://gov.wsbdapp.com/t/etp-2-macro-hedge/380.
Proposed Specification Details
Principal Investment Strategy:
The ETP is a passively-managed exchange-traded portfolio that seeks to achieve its investment objective by investing primarily in fiat-linked crypto stable coins, tokenized commodities and crypto native assets that are expected to benefit, either directly or indirectly, from rising prices (inflation).
This investment strategy deploys techniques designed to mitigate or eliminate downside systemic risk by referencing a portfolio of assets based on the interpretation and prediction of large-scale events related to macro factors such as economic models, market conditions, historical trends, and international relations (e.g., geo-political, regulatory and cross-border trade).
Asset Constituents & Weights:
We took on board that Gold should have a higher weighting, so we reduced this from the FIAT stablecoins. We are still currently having a 80/20 split but this will reduce overtime when further assets are added to the mix. So, at inception, the WSB Macro Hedge ETP will hold the following assets and weightings:
| Asset | Type | Weight |
|---|---|---|
| USD Coin (USDC) | Currency | 30% |
| Synthetic Euro (SEUR) | Currency | 23.6% |
| NZD Stablecoin (NZDS) | Currency | 21.4% |
| Wrapped Bitcoin (WBTC) | Crypto | 5% |
| Wrapped Ethereum (WETH) | Crypto | 5% |
| Wrapped Digital Gold (WDGLD) | Commodity | 15% |
Rebalancing
This SDR-esque like product would not be rebalancing on the same timeframes (5 years). A proposed 2 month rebalancing would be in place. This allows us to see how well the ETP is performing and enough time on seeing what other constituents are ready from the Asset Universe.
Portfolio Management & Expense Structure
The following table describes the fees and expenses that the Pool will apply to create or redeem units in the ETP. In addition, unit holders may pay other transaction fees, such as network gas fees on deposit and withdrawals of the ETP.
| Type | Amount |
|---|---|
| Performance Fee | n/a |
| Swap Fee* | 0.025% |
*Unit holders may vote to vary the swap fee rate & the fee split with the DAO from time to time.
A vote “Agree” represents we should move forward with this ETP and will launch it as soon as practical.
A vote “Disagree” represents a new proposal should be made based on user feedback on a follow up post and we will refactor our choices.
Off-Chain Vote
Agree
43.44M 86.6%
Disagree
6.74M 13.4%
Timeline
Jul 03, 2021Proposal created
Jul 03, 2021Proposal vote started
Jul 07, 2021Proposal vote ended
Oct 26, 2023Proposal updated