Sentiment Check: Investing 10% of funds into $MVI

Status: Draft

Author(s): BuzzedMo

Discussions-to: TODO

Created: 17/08/2021

Implementation (optional): [Added if BIP passes] ‌

Buzzed Summary

We invest 10% of our ETH (24.5) into $MVI, the Metaverse Index, from the Index Coop.

Abstract

This is a proposal suggesting that we put 10% of our capital (24.5 ETH) to work by investing it in $MVI, a market cap weighted index capturing the tokens of top metaverse projects.

Details about the index can be found here and here

Motivation ‌

The Metaverse Index would give us broad exposure to the metaverse, and let us catch the upside of great work happening in NFTs, Gaming, and other metaverse categories.

Specification ‌ Overview ‌

We purchase $MVI tokens from Index Coop via one of a few different methods depending on market liquidity, gas, etc at the time, including, but not limited to:

  • OTC sale from Index Coop
  • Balancer pool, allowing us to DCA into the index
  • Minting directly on Set Protocol

Rationale ‌

We should generate returns for bear holders, otherwise why do we have such a treasury? We can passively invest in $MVI and capture upside from projects like Axie Infinity, Rarible, and Decentraland.

Copyright ‌

Copyright and related rights waived via CC0.

Should we invest in MVI?

  • 10% treasury into MVI
  • 5% treasury into MVI
  • Neither

0 voters

11 Likes

Downvote. If I want MVI exposure, I will buy it directly.

IMO, treasury should be used to either boost value of the BB project, or invest in projects/NFTs that aren’t (almost) infinitely divisible.

4 Likes

MVI is a token I wanted to buy into but never made an allocation. I am also a big fan of the YGG token for metaverse exposure, but it has catapulted to a pretty crazy FDV. If this were a few weeks ago (or if price suddenly dropped) YGG would be my favourite way to get metaverse exposure. I got boxed out on the YGG token sale. Unfortunately I wasn’t one of the 32 wallets that got in on that :joy:

To me MVI is a a pretty rock solid investment. I think it could yield really good returns in the short term, but is poised to be a massive winner on longer time frames too.

I think it can be difficult to know when to sell these non-yield bearing investments. I’d be curious how we plan on taking profits from an investment like this. What thresholds would have to be met to take profits? Going in with a rough plan on something like this might make some sense.

3 Likes

I support this. I personally believe we should be invested more specifically in the NFT and metaverse space moreso than traditional crypto investments or general DeFi.

3 Likes

I can’t think of a more attractive product to invest in for this treasury than MVI. Bears grok the potential value of the Metaverse. It seems fitting that we put our treasury to work in an investment that aligns with Buzzed Bear values. +100 to a portion of the treasury going towards MVI.

If this proposal is approved and executed, we may consider a follow up BIP to earn liquidity mining rewards with our new MVI allocation.

6 Likes

MVI exposure is solid and something I mention in my post at Investment Committee - #24 by central_mv.

I do however think 10% is on the high side. We’re all supportive of the Metaverse but it remains early and there is turbulence to be experienced. I would argue that especially if the broader crypto market experiences a draw down, the metaverse isn’t likely to be particularly stable .v. more established assets.

I would cap it at 2.5% - 5% max and focus on other opportunities with more extensive portions of the treasury.

2 Likes

To be honest, should there be a way to invest in long term NFT winners, or rather curated fractionalized assets in NFT world, we should strive to be a part of it as bears DAO. Ownership of said assets would put us on the map and and ensure our longevity even trough crypto winter

2 Likes

I support the 2.5% side. It should be a “punt”, not strategic ownership.

2 Likes

I like this idea. I think we are every early in the NFT arena. It cracked 1bil just recently and fired off during crypto bear market. Hibernation is for a long hold so if we are looking long term then I support this. Time in the market not timing the market is how I see it and this feels like buying Btc at $1

1 Like

Generally in favour of investing in MVI as it’s a ready diversified investment in the metaverse segment has huge future potential.

3 Likes

I’m in favor of the proposal

2 Likes

Perhap’s I’m more bullish on this because I’m intimately familiar with MVI, but you’re not the only person concerned about the 10% allocation. Not to mention 24.5 ETH would move the price on purchase. We were looking at finding a way to DCA into this anyway, or OTC somewhere at the Coop.

When I get to the formal proposal I’ll change this to 5%

3 Likes

I support this since this would make the bears be in a sense part collateralized by the metaverse vertical. MVI is particularly suited to diversify the treasury if we want to decrease volatility but remain invested in the space.

2 Likes

24.5 ETH shouldn’t have too big a price impact if the exchange issuance contracts hosted by Tokensets are used (ETH → tokens → MVI).

I can check the underlying liquidity if needed, but $73 k shouldn’t impact the underlying price.

2 Likes

Good to know. I checked with Noah but at a full 10% we’d actually become a sizable holder in MVI would we not?

1 Like

MVI (and DPI etc) is created when people mint it, or by arbitrage bots when the DEX price is higher than the NAV.

We are discussing buying ~$73,500 of MVI. That should result in the creation of ~620 units of MVI. So the Market cap will increase by ~$73,500 but should not move the $MVI price.

$24.5 ETH is ~ 0.4% of the MVI market cap.

2 Likes

All, I’ve added a poll here. Please vote with your opinions so I can make a formal proposal :slight_smile: Sentiment Check: Investing 10% of funds into $MVI