In today’s ever-changing financial world, drastic and volatile market change is inevitable. Markets can swing up and down more quickly than they’ve ever been able to before. However, there is always one group, one entity, one organization that never loses — whether that’s in a bear market, or a bull market — wall street.
Investment banks, trusts, hedge funds, mortgage-backed hedge funds, you name it; all of these financial institutions have created fool-proof strategies to make money when the rest of the world seemingly loses it. How do they do so? By betting against the average person.
What happened in 2008? Banks packed thousands of faulty mortgages into CDO’s and sold them to investment banks. What did the smart guys on wall street do? They bet against those CDO’s by purchasing credit default swaps. Thus, hedging against the housing market. Though there were very few who were aware of the CDO’s being filled with very volatile mortgage loans, those who caught onto it profited big time. Those who didn’t and decided to trust the big banks saw devastating consequences: Lehman Brothers, ah, the “too big to fail” bank did indeed do just that, it failed.
So what am I on about? Hexal — This is exactly why I decided to create Hexal DAO. In the world of fiat currency, few and far between will ever have the opportunity to be apart of any of these financial institutions. Unless you are backed by tens of millions in liquid assets along with a deep routed network of wall street playboys, you shouldn’t expect yourself to have access to such financial institutions.
Let’s change that. Yes, you heard me right, we’re going to change that. Cryptocurrency and more-so, DeFi specifically has created an abundance of opportunity for retail investors to be apart of something bigger, something greater.
Hexal DAO works as a community governed hedge-fund by allowing $HXL holders to vote and submit investments proposals on our community snapshot that will in return, determine how we manage our treasury in order to hedge into assets and produce impressive high-yield returns that will increase our backing price.
Treasury Breakdown
This is a rough breakdown of how we’re going about “hedging” our treasury — this is subject to change as we are very small in treasury capital and this is really only a feeler for everybody to read and give us feedback on.
30% — Bluechip cryptocurrencies: 30% of the treasury’s funds will be diversified in large holdings of “bluechip” cryptocurrencies. Bluechip cryptocurrencies include, but are not limited to, Bitcoin, Ethereum, AVAX, Poly, and FTM. These assets are long-term and very high-yield bearing so it’s really a no-brainer that we will never lose money on these in the long term view of things.
10% — Stable coin yield farming: Most DAOs park their treasuries solely in stablecoin yield farms but if we were to do that then we’d really just be wasting our time dishing out miniscule 18–20% APR yearly. Our goals are at least 60% APR a year for the treasury collectively. Frankly speaking, we think we can blow that figure out of the park. The only reason we are going to allocate a percentage of our assets into stablecoin yield farms is to simply just have some non-volatile capital sitting in the treasury. This allows us to have collateral coverage if another pool of our assets is down.
10% — NFT holdings: By this we mean purchasing NFTs as a DAO and collectively proposing and voting upon which NFTs we purchase and when we sell them as well. What we are going to be doing is essentially buying and hodling a NFTs collectively as a DAO. When we’re satisfied with our profits or any offers receive on our listings, we can vote collectively vote on when to pull out and sell. The revenue will flow back into the treasury and we will rinse and repeat this and still pay out our rewards daily.
10% — Metaverse real estate: Similar to collectively purchasing NFTs with the treasury, we will buy property in the Metaverse in the form on Sandbox lots that we will vote on when to purchase and when to sell as well. Just like with the NFTs, when we’re satisfied with our profits or any offers receive on our listings, we can vote collectively vote on when to pull out and sell.
5% — Real world assets: A very small amount of the treasury will be used to invest into real world assets like stocks through synthetics on Mirror protocol and we will also be buying real world property together and tokenizing it to create revenue that can be used as rewards for everybody. How about buying a commercial property, renting out the units, and selling each unit as a node that pays you x amount of rent every month — sounds crazy right? Yeah we know.
Hexal is really “bear market-proof” through the diversification of its assets into long term yield bearing capital that not only produces sustainable rewards but also utilizes the treasury in a way that no DeFi project has done, ever. As we grow in total value and size, we are going to be veering away from the current model of a rebase DAO powered hedge fund to a capital backed, semi-autonomous hedge fund.
Stay tuned for more details about what the timeline of all that will look like when we release our official roadmap.
With love,
-Alex (Founder & CFO)
If you haven’t yet, make sure you follow our all of our socials:
Telegram: https://t.me/hexaldao
Follow us on Twitter: @HexalDAO
Join us on Discord: https://discord.gg/bhE7TX3R
