Fund Allocation Proposal #16

[russiaman]

### Investment proposal: CHI

Potential profit: 20% in eth. (120% APR)
Strategy duration : 61 days.
Max investments volume: 1111$
My “subjective” estimation of

• positive outcome probability : 85% (means profit>0%)
• target achievement: 65% (means closing position at 20% profit in eth)
  ('subjective' meaning: based on personal trading\investing experience, my connection with Space signals, and mostly tarot cards prophecy)

Proposal inspiration

CHI is a derivative asset on ethereum network gas price. In other words it can be treated as an index on ethereum gas price. So, when demand on ethereum network is “normal” or “low” - the price of an asset is in low range, and controversial - when network demand is high then price of CHI going up.
CHI is a token created by 1inch.exchange team. 1inch using this token for their exchange operations. As we can see with a time demand on 1inch service only rise higher and higher and this demand have positive impact on CHI price too.
Ethereum GAS price these days is at more or less lower rate compared to two months average.
So, I suppose CHI is perfect tool for speculation!

Risks&Considerations

Profit in strategy declared in ETH. So this mean if within 61 days we will take 20% profit but price of ETH/USD dropped on 50% - we in fact lose 30% of equity value calculated in USD.
If demand on ethereum blockchain network will goes down even more then at the day of strategy execution - CHI price will go down as well.
Exchange volatility : CHI token has low-volume liquidity pools on dex’es. So with low slippage at a time we can trade 200-500$.
Timing: because its low-volume nature is very important to react fast on market conditions as for open position and so for closing position. We can use limit orders on 1inch.exchange which use 0x protocol.. but from my experience its totally not effective in fact. This question has to be discussed internally before execution, we need a solution for this issue.

Execution

Depends on the investment liquidity volume we break it into two or three equal pieces.
Each piece goes to individual “limit buy order” (I use quotes here, because we dont have any effective tool to do limit order lol))

• 1 condition: chi/usd price <= 0.12
• 2 condition: chi/usd price <= 0.108
• 3 condition: chi/usd price <= 0.0972

Closing

Case 1: Target
When our position achieve 20+% profit we close it. (need to discuss and develop fast possible way)
Case 2: investment duration limit.
If 61st day passed from position opening - close position.
Case 3: Circumstances.
Any MRR tokens holder member can initiate voting for closing position at any time.
Case 4: stop loss.
If our position drop to 30% loss I define it as “extreme case”.
Normal month volatility of CHI price is near 100%.
The nature of CHI token is such, that its price depends much on the ethereum network activity.. and its veery unlikely that CHI will loss it value and not goes back in appropriate timeframe.
Because of that if CHI price dramatically going down I argue to hold and develop decision with MRR token holders team in this extreme case.

Additional material:

CHI token description: https://medium.com/@1inch.exchange/1inch-introduces-chi-gastoken-d0bd5bb0f92b
CHI Uniswap liquidity pool: https://uniswap.info/token/0x0000000000004946c0e9f43f4dee607b0ef1fa1c

proposal by @sergelove