This article serves to outline how ACYC has positioned itself recently to take advantage of the markets, as well as remain resilient in downtrending conditions. We also examine our outlooks for the market as a whole and how that affects our strategies moving forward
ACYC’s Investment Strategy
Market conditions have been bearish for months on end now, leaving many investors fearful and with massive losses. However, having thrived in previous bear markets, the ACYC team is thoroughly prepared for this moment. Because ACYC prioritizes flexible treasury management based on market conditions, we have had the foresight and made the necessary adjustments to make significant gains during this bear market. Our goal is to accumulate ETH and position ourselves for major success during the next bull market.
Given the current state of the market, the goal is to preserve and accumulate as much ETH for the ACYC treasury as possible. This does not mean we will hold as much ETH as possible in a given moment, but instead all plays being made are to maximize the amount of ETH the treasury can accumulate over time, even as the price of ETH falls. All profits from these plays are then funneled into high conviction, long term alt coin plays–positioning the ACYC treasury to take significant advantage of the next bull market.
One example of a recent play is the GMX/GLP pool which we are currently farming in, an indexed basket of assets that holds about 30–40% in stable coins while yielding 40%+ APR (before accounting for compounded interest). The good thing about the GLP pool is that because it’s made up of a significant amount of stable coins, we aren’t completely exposed to ETH. If ETH were to fall lower than it is now, we’ll be able to swap back for 30–40% more ETH than we started with.
Since the last time we’ve distributed profits, we’ve turned 100 ETH of initial capital into approximately 130 ETH. We managed to capture this 30 ETH profit without reducing our exposure to any alt coin farms, which while currently are underperforming, provide us significant long term upside.
Additionally, we have taken a portion of those 30 ETH profits to invest into alt coins that we have very strong, long term conviction in. For example, 8 ETH has gone into the MAGIC/ETH liquidity pool, which is earning 90% APR. We will be moving more profits into alt coins as we continue to earn profit and position ourselves for the next bull market.
Before the recent ETH crash, we believed ETH had a good chance of falling and potentially bottoming between $1,700-$1,800. To prepare for this, we set ETH bids around those levels, and closed those positions between $1,800-$2,000 to earn the ACYC treasury some quick ETH. This exact scenario ended up playing out, earning a quick win for the treasury.
Moving forward however, given the current sentiment of the macro markets, it is increasingly unlikely that $1,700-$1,800 is the bottom for ETH. If ETH falls below support, a move to the 200 week moving average is very likely, with a flash candle into the 300 week moving average also possible. We have sufficiently hedged to be prepared for this potential downside, and will be adjusting our portfolio to capture profits regardless of market conditions.
NFT Investment Allocations
Next to the positions we have taken farming and hedging ourselves for the tumultuous market, we have also allocated a significant amount of our NFT capital to the Okay Bears project. As of writing this, we have invested around $400k into Bears and are sitting at around $200k in profit already. We see this move as a long term positioning in what we believe will be one of the next big ecosystems. Our eventual price targets for Bears range from $50k on the low end to $100k per Bear on the high end. This allocation presents a unique opportunity for our treasury to see massive gains in the next several years.
ACYC’s investment strategy for NFTs is not to be on every ship, but to be on the right ones and have significant allocations in the right places. We are heavily invested in the CyberKongz ecosystem long term as well as Okay Bears. Next to those two allocations, treasury NFT funds have been used for quicker flips of NFTs, capitalizing on interesting market opportunities, like that presented by a recent dip in Azuki NFTs. The treasury was able to purchase three Azuki around 10ETH, and flip them between 12–17ETH each within just a few days.
These types of quick flips are nice for building capital with little risk and quick returns, that can then be used to fuel our other allocations in this branch of the portfolio.
Ultimately, our goal is to grow our treasury and use those large treasury funds for yield farming. The medium term goal is a $10m treasury, which when used for yield farming will allow us to buyback and then manually reflect $ACYC tokens every day to $ACYC holders. Bearish market conditions are an excellent time to stack ETH, which will get us significantly closer to our $10m treasury goal once crypto gets bullish again. We also will use this time to continue building the community and infrastructure of ACYC. We are positioning ourselves to lead the charge into the next bull run.