It would have been prudent to protect against a potential drop in revenue by hedging. This could be accomplished by shorting an equivalent amount of ARB, effectively locking in the dollar value to be received. Alternatively, selling immediately is also a viable option, especially since the amount isn’t large enough to necessitate using the DCA method for liquidation. We support the first two options because mistakes can occur. However, Steakhouse should implement measures to avoid these issues in the future, especially if their expenses are calculated in USD:
- Approve only a 6 month contract from available funds
- Earmark additional funds so they complete their one year tenure
We’re curious to know if they would have returned a portion of the funds if the token’s price had increased in value.