This RFC proposes to reconsider the swap part of the proposal as CVX token price substantially increased (more than doubled) in the last three weeks and DTOP position liquidation turned out to be paid in a mix of synthetics productive (sETH, sBTC) and non-productive (sUSD) assets
On the 28 of March 2022, following TDP 36, the Asset Management subDAO liquidated its DTOP position composed of 180,210 DTOP and obtained in return the following tokens:
- 1.2481 sBTC ($56,509)
- 6.3214 sETH ($21,211)
- 71,497.5762 sUSD ($71,388)
DTOP Liquidation RFC was originally published on the 7th of March 2022. At that time Convex token (CVX) price was $15.30. When the DTOP liquidation was executed, CVX token had gone up to $31.08 i.e an increase in the price of +203% compared to the first publication**.** At the time of writing, CVX token is $38.11 which represents a +249% increase compared to the original publication date
Please find below data from Coingecko highlighting these specific moments in time.
While CVX potential upside can be substantial in the short term (CVX is still 40.4% down from its ATH), it is proposed to keep the synthetic productive assets obtained from the DTOP liquidation (sBTC & sETH) in the Asset Management SubDAO while still swapping the 71,497 sUSD into CVX.
Indeed, the unexpected outcome of the DTOP liquidation enables the Asset Management SubDAO to get a long-term exposition to very resilient native tokens
The Asset Management SubDAO will perform the CVX purchase with 71,497 sUSD opportunistically & notify Meta Governors at the completion
The price range targeted will be an +30-70% increase from the original RFC publication price which gives a wide $19.89-26.01$ price range
- If CVX enters the aforementioned range, it should be immediately bought
- If CVX never reaches the aforementioned range, it should be bought regardless at spot price at the latest 1 month after the vote of this proposal
The Asset Management SubDAO will still take a $71,497 position of CVX and get the benefits described in TDP 36 as well as potentially staking it
Total current market value of these highly productive assets is $77,720 representing only 2.089% of the AssetManagement Sub DAO holdings
Create exposition to the best risk/return assets (ETH, BTC) the Asset Management SubDAO Treasury could get over an extended timeframe
It is suggested that the community comment on this RFC in the coming days, and bearing no significant opposition or change in ideation, we would move ahead with this RFC in the coming week and create a formal draft proposal on Github to be used for the review.
Meta Governors are encouraged to provide as much feedback as possible until then, so we can create the best possible outcome for mStable and its users.