[INVESTMENT] Purchase token - Solana (SOL)

Hello all,

it’ about time we acquire some Solana for our Treasury. There are a few reasons for why the timing is good now:

  • Last week correction brought Solana trading in the very interesting range of 80-100$. Current market cap is reasonable at 30B. (Cardano is 35B)
  • Latest update pushed to mainnet fix the congestion bug of duplicate transactions and further increases TPS
  • There are opportunities in DeFi using Solana stablepools in yield-farmings
  • Metrics for ecosystem growth (# of devs and commits on GitHub, Retail interest on Google, NFT marketplace volumes) are positive and growing.

This said we are blessed with the opportunity of purchasing Solana at this price and deploy in yield farming, I suggest we use 20% of out Treasury over the next 10-15 days to DCA our entry price.

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I don’t see why not. I think most people will be benchmarking the DAO’s performance against solana anyway, so it might make sense to hold some.
I would recommend a longer deployment time. Maybe 30 days though. The whole crypto market is looking really shaky and I wouldn’t be surprised if things dip even further.

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I agree, we’re in a very good moment for buying some, even though as PorcoRoss said market is very uncertain and could go even lower. But it makes sense to have a good portion of the portfolio allocated to SOL

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totally agree - also bc with SOL we have great farming opportunities to get a good APY with SBR emissions

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Proposal is up metaCOLLECTIVE Governance

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Should we keep buying some more via DCA?

wdyt @PorcoRosso @Crypto_notte @MauroG ?

87$ Is surely a very attractive price…

I have no view, as I don’t track Solana market movements. Personally I don’t believe in technical analysis at all, so just be careful looking at past price levels and believing they are relevant.
Fundamentally, do you think Solana should be worth more? What has changed the market’s current view? just general market Beta? What will cause market participants to change their currently priced-in views going forward?

I think we are (today even more) suffering some macro news and legitimate risk-off environment, but LT (our metaCOLLECTIVE view) I don’t see any impact. I would deploy another buck over the next 15 days or so → the market is quite low (-70% from ath) and we are still only ~21% deployed into riskier assets, therefore I would increase our position in $SOL and put it right away into farming

Highly likely market beta… currently all risk-on assets are impacted by the current geo-political situation, however for our current exposure and farming needs we are better off increasing our allocation to SOL and SOL farming (higher rewards).

I will initiate a vote to buy another 1M USDC of Solana, same execution conditions as last time. Most of our USDC are lent out and we have 250k USDC free so to carry on with the purchase we will have to unlock some liquidity. I suggest to withdraw USDC funds from the platforms with the lower realized yield, at the moment these are Apricot and Francium.

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totally agree on this

Hello guys! re-opening the discussion here as I think it would make sense to increase our exposure towards risky assets like Solana. More in detail, we are seeing the market stronger and i think that is support as well but the volumes of buys and the leverage that starts picking up again.

I would start to increase our exposure towards more risky assets like Solana with an additional buy in the range of $500k-$1M. As of now, we have still less than 50% of our treasury deployed in risky asset and if the market is changing sentiment this could penalise us in the next bull market

agree and would go for $500k

To be completely honest the next months we might see a Cambrian explosion of the Solana ecosystem in terms of:

  • business development (rumors of large US corporation in the payment sectors as well as gaming conglomerates)
  • technical development (Riptide hackathon, the closing of Solana hacker houses at FTX Bahamas)
  • user growth (retention rates and users growth are among the largest of L1s)

From a macro POV it seems global markets are pointing to a high-inflation environment with little growth (stagflation). In such an environment capital run away from equities and bonds, however cash is not safe too! That means capital will flock into ONE sector only: crypto.

Let’s get AT LEAST 1M USDC more of SOL, and let’s do it before Solana Summer.

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Agree, at the end of the day we will never be certain that the bear is over but if we look at the overall portfolio allocation we are more than 50% in stables at -50% from ATH. Strategically I would love to be positioned for then next bull market like this:

  • 1M more in Solana, which we can farm much better than stables
  • 100k into Solana NFT (for which we need SOL)
  • 1M in high beta tokens, like SRM/LDO/SBR/MNGO
  • the rest in stables, but ready to be deployed into risky assets (maybe on some other chains either via Wormwhole)

Also to add more on @Crypto_notte statement, I think the whole development in the Solana Payments is not to underlook.If we look at Riptide sponsor prizes besides the crypto project we have giants as VISA and GOOGLE → they are too big to come and put their brand for something they are not heavily betting on.

While I don’t fundamentally disagree, just want to pour some cold water on you guys.

Being a Solana DAO, I understand you are pretty biased towards positive developments in Solana. I personally don’t see the clear advantages of the platform at the moment. Maybe you could enlighten me a little more?
Also I wouldn’t put too much weight on corporate partnerships. There have been previous ones and they never really went anywhere after launch.

Again, not against allocating more to Solana, but want to make sure you guys are maintaining an objective view.

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Tbh I feel I don’t see so many fundamentals that would justify this huge pump that just happened. I mean the way I look at the technological ecosystem it has not changed that much in the last month and yet the price of Solana has already increased by almost 50% in this period. So I feel the likelihood of Solana price increasing for the next two months is lower than the one for it decreasing. Moreover, I think the geopolitical situation that caused the dump, that is mainly the war in Ukraine, will worsen in the next two months, since the Russian needs a victory that they cannot get, pushing to war to last longer, which again seem to suggest this pump period cannot really be sustained for the following months. So I would wait for a SOL purchase

I agree that the flight to crypto as a way of moving funds out of certain jurisdictions/donating money will probably not last. Do you think Solana really just rode the beta of the crypto markets? most people I know buying to store funds are using BTC and eth, or stables. They are just using it as a mechanism to transfer funds most of the time, but over OTC markets. I kind of agree that there is not any underlying market forces supporting this recent wave. Maybe the payments stuff?