Fund Allocation Proposal #8

[leomorozovskii]

03 December 2019
REVIEW

One of the potential investment strategies for DAO funds can be having exposure on ETH fueling Ethereum blockchain ecosystem and supplying to Compound cETH contract

GOAL
Using ETH to gain exposure on growing Ethereum Ecosystem and supplying to Compound for using leverage position

Technical details
Compound.finance is decentralized financial application providing real time money market on digital assets.

**Strategy description:

Parameter	Value	Comments
Transaction type	spot	spot tradederivative trade
Assets	ETH	ETH/DAI
Direction	long	longshort
Amount of Assets	70% (10% each month DCA)	Max amount limit, determined by the amount of MRR (% of AUM)
Margin	1x	1x2x3x
Thesis / Rationale	Ethereum will be upgraded to prepare for Phase 2 scalability and create additional demand on ETH for staking on beacon chain network, plus DeFi demand is rising
Execution price	≤148,15	For ex. ≤ 310 DAI per ETH
Target price	250	For ex. 500 DAI for 1 ETH
Expected return, (%)	68,75%
Expected return, annualized %	137,50%
Duration	6	months
Take Profit	$250	? y/n, partially / fully?
/ Stop Loss	$120	? y/n, partially / fully?
Execution platform	Kyberswap.com	Decentralized exchanges
Expected return E(Rp)	30,26%	Month
Strategy Risk, return volatility 𝞂p	67,56%	Month
Sharpe ratio Rp − Rfσp	0,53	Month