DAO Stonks

The DAO Stonks strategy investment objective is to provide exposure to synthetic FAANG stocks (Facebook, Apple, Amazon, Netflix, & Google) while enabling additional returns via yield farming incentives offered by the Mirror Protocol.

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Allocations

Asset Name

Allocation

Exposure

Liquidity Pair

Platform

Reward

mFB-UST

15%

7.5% mFB

7.5% UST

mAMZN-UST

25%

12.5% mAMZN

12.5% UST

mAAPL-UST

30%

15% mAAPL

15% UST

mAAPL-UST

5%

2.5% mNFLX

2.5% UST

mGOOGL-UST

25%

12.5% mGOOGL

12.5% UST

All rewards earned will be automatically sold and reinvested back into the strategy to maximise the compounding effect. The portfolio will be rebalanced quarterly to reset the strategy back to its standard allocations and weights laid out above, so that the strategy can maintain an ideal allocation.

Strategy

The strategy takes advantage of the high liquidity provider incentives that are offered by the Mirror Protocol. Tokens are converted into the designated token pairs according to the designed allocations, and token pairs are then, in turn, deposited into liquidity pools that generate additional rewards.

This allows the overall strategy to not only benefit from the appreciation of the token price itself, but also enjoy the additional rewards offered by liquidity pools. All rewards generated by liquidity pools are then automatically sold in regular intervals and reinvested back into the LP for compounding.

Fees and Benchmark

‌There is a 0.5% - 1% fee charged per deposit (1% for deposits below $50,000 USD, 0.75% for deposits between $50,000.01 USD and $100,000 USD, and 0.5% for deposits above $100,000 USD). A 10% fee on the harvested reward (the rewards collected for each liquidity pair) is also charged for the gas fees associated with yield harvesting and LP reinvesting. Finally, there is a 20% profit-sharing fee charged that goes towards the protocol (for operating costs and sustainability) and community pools (for token holders).

Risks

As the assets are allocated in liquidity-providing pairs, impermanent loss is a risk for this strategy when the price of one asset significantly outpaces the other in the pair.

Download the fact sheet for DAO Stonks Strategy here

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