Treasury Diversification

The PathDAO treasury has approximately 10M USDC and 5M UST on Anchor generating 19% yield (should happen soon). I propose that 5M be allocated across the largest L1s that have P2E ecosystems (ETH, SOL, and LUNA). That equates to $1.67M in each. These L1s have sold off by 10-20% from their highs, so they are at attractive entry points. They are also the currency in which we will be investing in P2E games.

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Love to see new ideas. I’d be very keen to get the thoughts of the folks up top regarding alpha investments on the horizon…a sort of gameplan of timelines over which we’ll likely need to deploy capital. That way decisions over what to do with capital in the meantime can be made.

Regarding the L1s, I personally have a bit of hesitation over ETH because when ETH2.0 launches, there will be a massive release of locked ETH flooded back into the market, which will possibly depress ETH price. Obviously again timelines are unclear.

Perhaps the core team can provide some insight on what the alpha horizon looks like first so that we can sketch out ideas such as this accordingly? :slightly_smiling_face:

I love the idea and your reply. Alpha horizon will inform how much we should buy now and in which asset.

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We do not fix the pace at which funds are deployed. Instead, we create an internal scoring framework and are currently calibrating. I.e. we only invest in assets (tokens / NFTs) above a certain threshold, and the ticket size is based on the score.

That said, we think it will take at least a year to fully deploy the treasury we have, assuming no liquidation of investment which brings us more liquidity

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