Hello guys, opening this thread to discuss what we should do with the tokens we receive when we stake.
My personal view is that for tokens like Sunny, we can convert them into Solana on a weekly basis. Furthermore, I would suggest that when we stake them we decide beforehand what to do with the tokens earned and we execute it in a systematic way. I broadly see 2 options:
- we stake for the APY → then let’s convert the proceeds into USDC/SOL
- we stake for the tokens generated → we do nothing and hodl
lmk ur thoughts
I prefer 1 and personally USDC to put into protocols we have for idle USDC. I think it would be easier to keep track of than putting it into SOL. Can always convert USDC into SOL again for a batch at the right moment.
Of the current ones we mining I would keep SBR and SUNNY. For the rest like APT, COW etc we can probably sell them for SOL or USDC
There could be a third way:
- We define and set target investment allocations in relative terms rather than in absolute terms (i.e., x% of the AUM allocated to SBR instead of $x allocated to SBR);
- We periodically (e.g., once every week) allocate the “free” proceeds with the objective of reaching the approved allocation target.
With both #1 and #2, I see the risk of keeping resources in tokens that do not generate a return, while with #3 we maximize the deployed of capital without the need to have constant new votes.
I would hold the new and promising project tokens that might appreciate and sell the established ones.
IMHO this is similar to a “make or buy” decision, however - allow me the joke - it would be more a “farm or buy” decision.
A) In the case where we don’t have any current allocation to the token we are farming OR there is no ongoing discussion to purchase the token we are farming, we should sell such token to USDC. Right now this is the case for COW, LUNA, HBB, etc
B) If we already own the token we are farming, it means we are confident to hold a long position. In that case the questions should be whether the % allocation to that specific token has grown too much compared to the original desire of the DAO. This would apply to SBR, however I do not feel the SBR we farmed at the moment outweigh the 100k USDC purchase of last week, we should hold on to them.
C) In the case we have an ongoing discussion on the token we are farming but no current position, I believe we should just wait for the binary output of an eventual investment proposal. If passed, we fall back to option B, if NOT passed we fall back to option A.
This seems like a reasonable view to me. And a good general rule to follow. I wouldn’t want META to end up owning assets where we have not discussed at all. Call it style drift.