Title: YIP-20: Treasury Purchase of $250k wBTC for Yam Dao Set Author: @Feddas Forum discussions: YDS Purchase of $125k additional ETH and $250k wBTC and Tail Risk Management

Basic Summary

We will be transitioning the investment arm of the treasury to the Yam Dao Set which will be managed by an elected portfolio manager.

This snapshot is to use the treasury’s yUSD to buy $250k worth of wBTC. After this purchase, it will bring our total assets to be transferred into YDS to:

Abstract

Our portfolio beta = 0.66 and correlation = 0.65 as of 11/30/2020:

After YDS is ready and tested, we will move the assets and let the Portfolio manager reallocate funds as needed.

General consensus from the community found that a moderate 3 was appropriate for our initial strategy: A majority of the treasury is held in a yielding stable coin yUSD, I would like to diversify more of the yUSD into wBTC and ETH to approach our target of moderate 3 aggressiveness which would target a Beta (vs. ETH) of 1.5 and a correlation of 0.8. Since the Beta underlying target is ETH, this creates a fairly aggressive portfolio, which will contain a good amount of volatility. This is balanced by the fact that we only invest a minority portion of the entire treasury into YDS.

Specifications

Use the same OTC contracts that were developed by Brock or let YDS Portfolio Manager make the purchase when YDS is ready.

Voting:

Quorum requirements: 200,000 BoU Yams