Investment Account - April Update
As of the end of April, all 100% of the capital within the Investment Account is actively deployed. The Investment Account continues to provide Protocol Owned Liquidity (POL) for icETH without having any ETH price exposure. The POL position is generating an income for the DAO independent of market price movements.
The Investment Account holds $6.74m of capital earning 7.01% in BAL and TRIBE rewards. There is also swap fee income and income from the POL position which is not included in the 7.01% figure. We do expect the current allocation of capital to be viewed favourably when the Arrakis DAO launches their SPICE token. This potential upside is speculative and if it eventuates, will enable Index Coop to use the SPICE holding to vote Liquidity Mining across Index Coop product/INDEX pools. We expect this to lead to higher TVL and reduce the DAOs dependency on POL which has absorbed 100% of revenue generated since Index Coop launched on 06/10/2020.
The Balancer Strategy is predicting a yield of 20.92% APY to commence in 2 days time when the next BAL distribution period commences. Meanwhile, the TRIBE strategy is yielding around 17% APY and has been a solid double digit ROI strategy. In June we hope to be reporting an APY > 15% which represents a significant step change to the current ROI being generated.
The strategy for Balancer remains the same as previous months and in the near future we intend to request from the Balancer community the ability to deposit our BAL holding into the VotingEscrow contract to attain veBAL to boost our Balancer Boosted Pool yield APY in the interim whilst Index Coop continues to design a product to be built on Balancer v2.
A link to this months publication:
Investment Account Report - April 2022 .pdf (128.8 KB)
Report Contributors: @prairiefi @ElliottWatts @Hammad1412 @Matthew_Graham
