metaCOLLECTIVE DAO [June update]
Hello all, We’re back with another update during this warm Summer, characterized by plenty of downside volatility in both crypto and traditional markets as well as some interesting announcements in the Solana ecosystem. If you missed the May one you can find it here https://medium.com/@meta-collective/metacollective-dao-may-update-fcdad023d525
SOL started the month at 40$ and closed at 31$ (-22%) however its relative performance versus BTC is actually positive (+24%), this to say that — even though there was a lot of downside — SOL saw demand compared to the rest of the crypto market.
Likely the reasons for this additional demand were the announcement of Saga and SMS, Saga being a Web3 mobile phone and SMS being the Solana Mobile Stack, a development framework to bring better Web3 apps to mobile.
PROPOSALS AND INVESTMENTS
- We deployed capital in Castle Finance USDC vault. Caste Finance is a yield aggregator that takes into account other parameters than yield, for example utilization rate. Thanks to this smart logic Caste Finance had little capital on Solend during the Whale attack.
The Solend Whale episode is a really interesting case study as it stressed the boundaries of DeFi and on-chain governance. A single user deposited > $150M in SOL on the platform and borrowed > $100M in USDC. This brought the utilization rate for USDC close to 100% such that users could not take out their USDC. At the same time, SOL price was dropping significantly and the platform was at risk of being under-collateralized (assets < liabilities). If you want to read a more in-depth research it can be found here: https://decrypt.co/103489/solend-whale-108m-loan-nearly-crashed-solana
- We deployed capital on Sharky Finance, a platform where users borrow SOL against their NFT as collateral and where we provided SOL.
- We diminished our exposure to USDT by converting spare funds to USDC
- We minted our access keys from Crema Finance, where we have been providing liquidity for the last couple of months.
- Additional deployment of SOL across the stable pools of different yield-farming protocols.
For what concerns our current protocol concentration around ⅓ of the Treasury is deployed among different farms (Mercurial, Apricot, Quarry, Aldrin and Orca), around 15% is in lending, the remaining 55% is sitting idle (not in lending, nor farming).
THE BULL NFT AIRDROP
We are now announcing the last token airdrop for theBULL NFT owners so be sure to check our Discord server to find how to register for the 3rd and last airdrop. Only one submission per user is allowed and only if you have the verified role
We have increased the number of positions in our portfolio by deploying less capital but on more platforms, this allows us to spread risk more while getting additional upside convexity. This also allows us to provide liquidity to new protocols without risking large portions of the Treasury and to continue improving the Solana ecosystem thanks to the contribution of our members.
Come join the discussion and meet the team, everybody is welcome, come join the metaCOLLECTIVE DAO!