DAOventures
Search…
DAO Tech Stonks

Investing Approach

The DAO Tech Stonks strategy takes advantage of the high incentives attached to being a liquidity provider (offered by Mirror Protocol) to allocate user assets into the synthetic stocks of the tech giants mentioned in this document already.
According to the designed allocations, the tokens are converted into pairs with UST and are deposited into liquidity pools which generates extra rewards. All of the chosen components and pairs are split equally to ensure a balanced diversification of the investor’s portfolio. About half of the portfolio is kept in UST and this is what is paired up with the synthetic stocks to reduce volatility while maintaining the high yield farming incentives APR provided.
With this, the overall strategy not only benefits from the appreciation of the price of the tokens but also benefits from the additional rewards the liquidity pools offer. For compounding, the rewards generated by the liquidity pools are then automatically sold at regular intervals and are then reinvested back into the LP.

Allocations

  • ​​7.15% MAMZN
  • 7.15% MAAPL
  • 7.15% MNFLX
  • 7.15% MGOOGL
  • 7.15% MTSLA
  • 7.15% MMSFT
  • 7.15% MTWTR
  • 49.95% UST

Portfolio Growth

Like have been said in this document, the incentives a user earns from yield farming these pairs would be compounded automatically by DAOventures smart contracts. This would ensure that the portfolio is rebalanced so that the strategy can reset back to its standard allocations as shown above. Ultimately, always maintaining a balanced allocation as a result of this.

Risks

A standard risk when it comes to providing liquidity on decentralized exchanges is Impermanent loss.

Fees

Besides the standard 0.5%-1% deposit fees and 20% profit sharing fees (see here for more details), there is a 10% fee on the yield farmed which is used to pay the gas fees associated with harvesting rewards and depositing LPs.