Thanks all for you inputs. I mostly agree with @PorcoRosso. The treasury is not that large and to build a reputation being larger rather than smaller helps somewhat. If cMETA traded above NAV then we could increase AUM but as of now it would be mainly to facilitate selling.
The issue in providing liquidity on-book is that it can’t be too tight anyways or we risk getting picked off. I can sympathize with people wanting out of the project. For this reason we have an OTC facility where block trades of cMETA can be discussed
We have never received an inquiry so far though arguably it has not been advertised a lot.
@EliteMentality , a few things I would mention. Agreed we did not have a huge VC deal flow so far, however if that’s something we want to keep open we can’t be much smaller than this. On one hand you don’t want to invest too much of tsy in a single protocol, but on the other you can’t make checks of like 10k.
Currently there is no value in buying a token because no one would ever pay you close to the value of NAV, there is no WL possibilites in NFT projects, no possibilities to personally invest in a VC
Looking at the book right now there are actually a few asks that are below the NAV so buying is not an issue. Selling is the problem (a better advertised OTC possibility might help). The value of the token is that it gives you a diversified exposure to the Solana ecosystem. The NFT WL or personal co-investments were never really discussed as key strengths of MC, though I can see why for some might be useful to have.
The argument that cMETA is backed by a treasury is in fact a false statement because there is no actual mechanism.
This was discussed at length in the listing thread. cMETA IS implicitly backed by the treasury and I refer you to the thread for the actual mechanisms (which in fairness include tsy market making cMETA).
I honestly find it very disturbing the lack of movement on this front as it was a promised feature and IMO is the most basic of basic foundations of the cMETA token
This was never “promised” but discussed as a way to “soft peg” cMETA. But as with all decisions of MC we need to reach a consensus and then vote on it.
cMETA is an hybrid type of token in that it’s similar to the NAV of an ETF (liquid, clear valuation of underlying, on-demand redemption) and an investment in a HF (very illiquid, no market valuation, lock-up periods & redemption only at specified times). When we discussed initially the target length was 5 years and then see how to proceed best, though of course we can unwind everything before then if we decide so.
Again, I sympathize with people wanting out and how the little liquidity might prevent people from buying in the first place. At the same time the underlying assets are very volatile, and I don’t think that 20% discount is enough to leave orders of size on the book, and to avoid being picked off when prices change rapidly. If we really want to show size on the book I’m more inclined in providing a larger discount eg 40-50% (which is quite large) while at the same time advertising the OTC facility, until we see some proper liquidity coming organically.