Diversify the 1Hive treasury with Hedgey Finance OTC

Hello 1Hive friends !

As you may all know, a few months ago we started a pilot program with Hedgey Finance to diversify some of the HNY treasury into xDAI stablecoins, using the Covered Calls protocol on the Hedgey Finance Moon Market.

For reference please see : https://app.hedgey.finance/#/moon/pool/xdai

While we are still maintaining this program with 30 HNY, we are looking to deploy other treasury swarm HNY with the newest Hedgey protocol - again for stablecoin diversification. The covered calls program has been very successful so far and 1Hive Treasury currently has more than 12000 xdai and a lot more HNY still to be diversified. The primary goal we are aiming to achieve through usage of the protocols is responsible stablecoin diversification without ‘dumping’ or negative impacts to the HNY price on AMM markets. With these stablecoins, we can pay contributors, deploy stablecoin for higher yields or adding to HNY-XDAI liquidity on Honeyswap, as some of the easy examples. We will open other discussion asking for 1Hive community feedback on what the stablecoin treasury should be used for in future. Let’s move on introducing the next cool thing now which is Hedgey OTC.

So far we have used the Hedgey Moon market to sell options for HNY, users could speculate and buy options and benefit with leveraged returns when the HNY market price goes up. As we mentioned we have already earned 12k xdai for 1Hive, and now with the remaining 70 HNY in the treasury swarms multi-sig we want to deploy using their newest protocol: Hedgey OTC. The protocol is simple: for a limited time we will sell HNY at a discounted price with a time-lock element. When the discounted HNY is purchased, it is locked inside an NFT! That NFT will have some 1Hive branded artwork, and those NFTs can be resold on secondary markets. To redeem tokens, the owners will have to burn their NFTs to withdraw the tokens out of the protocol. Shapeshift is deploying a similar strategy, selling $500k in tokens in the near future to their community, and DaoHaus has begun paying their contributors with.

Hedgeys NFTs as well (example image below)::point_down:

The treasury swarm plans to create the discounted sales within the next week, but looking for active discussion and thoughts from the community. The first batch will be only 70HNY, but if we find heavy demand then we would plan to do a full DAO proposal to deploy additional HNY directly (which would run straight from the proposal rather than through the treasury swarm). Our current thoughts are selling half of the HNY with a 10% discount, locked for 3 months, and the other half (35 HNY) for a 20% discount with a 6month timelock. These deals will have a limited window to purchase, likely only 10 days.

This topic is made to request additional opinion from our 1Hive community and see what are the bees interested to do next, so please feel free to comment and give us your feedback .

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Discounted, time-locked HNY seems like an easy way to raise stables with less negative sell pressure than market selling.

I think those 2 options as a starting point:

  • 10% discount, locked for 3 months
  • 20% discount, locked for 6 months

Hoping we add token streaming at some point, maybe when @kamikazebr’s vesting token app is ready?

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