Diversification with the goal to minimize the liquidity-adjusted value-at risk. ensure that any nonlinear dependencies between interlinked factors (asset prices, their time variations, sector-specific or geo-specific market frictions) are accounted for and use out-of-sample data to verify that the strategy can handle both average and tail dependence.
Carve out some chunk (3-20%) that goes to high-risk/high-reward investments. Have that percentage grow over time as assets under management increase.
Risk-averse. Perhaps a recovering risk-averse. Trying to be more risk-seeking lol. I did go to grad school and get a PhD (takes a certain type to make sucha dumb mistake lmao)
Just my two satoshis.
first up I think in general the conventional wisdom in treasury management does not work well in crypto. unfortunately, or fortunately, crypto is fast paced, high system risk and you will never have enough information and you never be able to predict how a new kid in town will perform in 6-month time.
However, the committee is dealing with public money. Needless to say this requires a fine balance between safeguarding the pool and taking necessary risks to capture the best possible upside to increase the firepower of the pool.
What I personally would like to see is a committee that is openminded and proactive in terms of working with/investing in new project (with proper due diligence), but in a measured step (ie. in smaller amount, etc). I certainly hope the committee was not a risk-averse one.
On a side point, crypto is still a small world, we need to build connections. And I think treasury has an important role to playin that. For more established project like Shapeshift, I think there is a responsibility to help other projects succeed.
Thanks for your candidacy. You have some impressive qualifications. Have you been involved in ShapeShift Discord? If so, what is your handle there? Thanks.
My handle is ProfMcCarthy. I have not yet been very active as I am still drinking from the firehose that is catching up with the happenings of the defi world in the last year, but I am here and an open book if you have any questions for me
Thanks for the response. How did you find out about ShapeShift and choose to seek candidacy with our tokenomics work? Why not some other DAO?
I’m a FOX holder and have been an admirer from afar for a while now. I know Danielle through my girlfriend, and had an amazing conversation with her two Fridays ago soon after Danielle attended a meeting wherein peoples discussed the ideation for the Treasury Management and Diversification Committee. I was excited to get to know Danielle and learn more about Shapeshift and the current state of defi. I am a passionate supporter of the Shapeshift vision and mission, and truly see blockchain and defi changing the world for good. Breaking down financial barriers and access to finance is one way to help the global poor out of insecurity. I’m academically trained, writing papers on how foreign aid and humanitarian assistance can be revolutionized by blockchain and defi. I’ve been an avid crypto-evangelist and have seen several bear and bull runs. I’m extremely excited to be here and can’t wait to see how the committee can synergize and best leverage each member’s unique skillset.
I trust Danielle (otherwise I would be ((rationally)) hesitant to make such a time commitment with no—current–compensation) and I’ve enjoyed the discord discourse that I’ve been apart of and witnessed in the short time that I’ve joined the Shapeshift community. I’ve been unusually terse just because I’m still catching up. I’ve been attending live streams and asking lots of questions (like one between chainlink and QDT on data feeds/predictive analytics today) and look forward to becoming a pest in the discord / these forums very soon!
Hey prof., thanks for that insight. I for one support you if you have the backing of Danielle and she validates/votes that you’re a mind we want on this team.
That is helpful context. Thanks for sharing it. Welcome to the community! May you flourish and bring much joy and prosperity to yourself and all of us!
Thanks for the content which is very helpful.Congratluations !!