Investment Report

July Statistics

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General Position

Preparing for the imminent launch of HFI we began positioning the treasury accordingly. Market conditions remain relatively poor with only some upside seen towards the end of the month.

Subsequently, treasury deployments are predominately defensive with market neutral strategies making up the majority. Focus remains on preparing for HFI launch meaning a number of liquid yield bearing positions are held in waiting. With that in mind a number of key long term positions were secured.

ETS was launched by Overnight Finance, offering hedged exposure to Dystopia and Penrose’s high yield. The treasury secured a $30,000 position before the supply was later capped.

Trading Bots were open on both BTC and ETH. We have kept exposure low while the performance is monitored. Currently the yield has surpassed expectations with no drawdowns to date.

Overall the treasury is gearing up for the launch of HFI, while ensuring funds are never idle.

Farming Strategies

Forming the backbone of our current deployments, a number of farming positions were opened.

With current pricing, a number of blue-chip options were unusually lucrative. The treasury had an AVAX/USDC position on Beefy Finance which was liquidated for a 26% profit thanks to the recent positive price action.

ETS provided a unique market neutral farming option, generating 52.8% APY for the month. The best returns came when the supply was capped.

Continuing with Overnight’s products, USD+ equally experienced an increase in yield after a change in strategy towards the end of the month. USD+ yielded 7.69% APY for the month however Overnight’s latest strategy is expected to boost this toward 8.5%.

Farming is expected make up the majority of deployments throughout the coming months.

Trading Summary

The treasury received trading exposure through two Trading Bots deployed towards the end of the month.

Trading on ETH and BTC, these bots have received conservative funding while performance is monitored. Currently the bots are sitting at 5.76% profit with no drawdowns observed as of yet. Currently profit will be compounded in order to generate positions of meaningful size from within the Trading Bot funding, thus minimising potential downside.

A third Trading Bot will be opened shortly utilising a separate strategy in order to diversify and increase the yield generated by this deployment. Trading Bots are expected to take on a larger role in yield generation in the coming months thanks to the arbitrage bot created by our partners Nous System.