Tactically de-risking and redeploying.

There’s a well-known investment mantra that says “buy the fear”. Another one I’ve learnt through my trading career is “sell euphoria”.

Yesterday we de-risked some of our MidasDAO position and moved the proceeds into MIM (a stablecoin). Here’s an insight into my conversations with our lead dev early in the morning on 20 December:

Why did we do that? Because we are up big on the position and wanted to take some profits, which we can then redeploy once an opportunity presents itself.

To be clear, we are still big fans of $CROWN and have a significant position, here we just sold around 35% of our holding, actually with a view to Mint (exchange MIM for $CROWN at an upfront discount) if the discount was greater than 40%.

The minting discounts we were waiting for didn’t materialise and having monitored the farming opportunities on Trader Joe we also weren’t convinced that the risk-reward made sense to farm on any other more liquid pairs.

At the same time, we’ve been closely observing positive developments with $TIME. In particular, we like that they are exploring lots of options including a wTIME for a CEX listing and decentralised betting. We also feel that the backing price and runway are much less risky than some other DAOs:

Whilst still offering some insane APYs:

So here’s what happened 14 hours later:

We bought additional $TIME at $3250. We woke up very happy with our decisions.

$CROWN has dropped from $400 (where we sold) to $261 now. In the meantime, let’s take a look at $TIME…

Happy farming!