TMC’s Proposed Allocations

DAO Programs & Initiatives Treasury Mgmt v1.2 - TM Track (ARB and Stables)
33

Thank you for the detailed information on the strategies.
Despite the fact that TMC recommends not to use the ARB strategy, it seems to me that it can benefit DAO:

  1. Under favorable conditions of the strategy, where the ARB will not increase significantly in price, we get a good premium in stablecoins. This is a plus.

  2. Under unfavorable conditions of the strategy, where the ARB will sharply increase in price, all ARB will flow into stablecoins. If the price is (for example) 30% higher, then in fact this is a conversion to stables higher in price than it was done in the stablecoin strategy. This means that this strategy can bring DAO more profit in stables than the strategy of stablecoins themselves.
    Yes, we will not save the ARB, but within this strategy we can add the use of put options to restore ARB at an acceptable price.

Therefore, it seems to me that it is worth using the ARB strategy, albeit with a different initial amount (you can use 1/10 of the volume for the first month) and adjust the strategy based on the results of the first trial period.

3 Likes