[INVESTMENT] USDC deployment - Apricot

See initial proposal here

Apricot is currently earning ~8% APY with ~4% USDC and ~4% APT liquidity mining. As of now I don’t have a strong opinion on APT but it seems to be suffering from the fate of many other liquidity mining tokens in that the liquidity distribution is depressing demand and the result is a dump in token price

At the same time, they recently released a new roadmap and tokenomics. Some of the new liquidity mining changes will go live at the end of Janury

All things considered, I propose to lend 100-200k USDC on Apricot

Exactly, my main concern with most of these lending platforms is that most of the “yield” is coming from a reward token that will continually get devalued as time goes on. You can’t just generate value out of nothing. The stated reward yields are nothing but vaporware, especially as they rarely have a real use.

Now if we could go short APT and long the USD portion that would be something… Going to have to vote against this unless you can argue a convincing reason. While I don’t think it would make a loss I think there are better alternatives to deploy the capital.

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Fair point! at the same time even if we assume APT is worth 0 we are still left with ~4% APY on USDC so pretty much in line with solend. And still provides some diversification on platform risk + APT is worth something, not exactly zero

Good points both, eventually we should decide in advance whether we want to sell immediately to USDC the token or keep it in the Treasury. Overall we observe the rewards behaving like a call option, they either bleed slowly ( = paying theta) or do 10X ( = receiving juicy gamma)

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Yes, curious about this. How are we going to handle decisions to sell/exit.
Can proposals include dollar cost averaging for purchases? Limit orders? What if something is more time sensitive.
I understand we aren’t trying to actively trade (I wouldn’t recommend it anyway) but how are we going to handle that element?

Once we have some assets or say we are in a specific LP, a new “exit” proposal can be made. Within a given proposal one can be as detailed as needed and we’ll execute (insofar as the execution strategy is feasible) so definitely DCA and and limit orders are game.

Regarding timing, the minimum time for approval is one day, which is the voting time of the investment proposal (unless >50% of total supply votes yes, unlikely).

For real emergencies (eg a protocol hack or similar) we reserve the right to act without a formal vote to safeguard funds