Thor Financial — Treasury Update
As we continue to monitor the global markets, we at Thor Financial are regrouping to strategize and implement ideas to capitalize on all forthcoming opportunities. With that in mind, we are sharing an update on how we are positioning the Treasury to provide the level of transparency you expect and to keep our amazing community up to speed as we begin to move into a new chapter.
The Current State
Across the board, price action has been on the downward trend and investors are rightfully expressing their concerns. We hear you, and we are tirelessly building and strategizing for the flourishing future we envision and know we will create.
These concerns aren’t limited to the cryptosphere, as all financial markets are experiencing certain levels of FUD. To get ahead, we as a team have decided to consolidate around 80% of our current positions into stablecoins to wait for better entries and market conditions.
Essentially, all positions will be consolidated aside from Quant and DAG, as we strongly believe in their utility and ability to secure a strong place in the emerging DeFi space. We will be looking to average down our entries by dollar-cost averaging and building bigger positions in the two, as we are confident it will serve us well in the longer run.
As far as our stables and entering new positions in different projects, we believe it’s better to wait for a definitive bottom before entering. We’ll be closely monitoring both PA and any new fundamental or narrative-driven momentum, which would offer a good risk-to-reward entry. Of course, exceptions can be made if seen fit and our stables will be deployed. For the time being, we are exploring options and looking at protocols such as Vesper Finance, which provides yield on our stables to steadily grow the Treasury and provide more ammunition for when the time comes to strike.
As we continue to consolidate into stables and divest from underperformers, we will be well-positioned to begin implementing our trading strategies.
We’ve launched the multisignature wallet for our Treasury members, making it much more efficient for the team to implement these strategies and for respective members to manage the different responsibilities and tasks that come with the roles.
This is a big step forward, as our investing history shows we have mostly entered positions with the longer term in mind and we still believe a portion of those investments will pay off and bear fruit. But for now, our current configuration allows for shorter-term trades.
We will be making our strategies transparent through frequent reports with all important details, targets, and analysis disclosed. Transparency and communication is important to us, and we plan on constantly keeping our investors in the loop.
What You Can Expect
As Treasury Manager, I will be readily available every day of the week for any questions or investment ideas the community would like to pass my way. You can find me on twitter @KasparovDefi for all inquiries.
From here, you can expect weekly to biweekly reports with all relevant analysis involving PA and FA on potential new investments and updates on current investments. We recognize it has been quiet on the Treasury side of things, and that’s been partially caused by the current choppy state of the market, but also because of other more prioritized internal affairs the team has been tirelessly working on for our community.
Again, with the multisig wallet set up, we will shift more focus on possible short-to-mid term trades to grow our Treasury and continue providing options that will thrill the community. Everyone at Thor looks forward to continuing this journey with you all.
Treasury Multi-Sig Addresses & $DAG:
Our Most Recent Ongoing Investment
With our recently consolidated treasury funds we have decided now is the right time to start DCA-ing into $LPL (Linkpool) as we believe the market downturn seems to be nearing an end but will also have more funds ready to lower our entry prices if need be. We will also simultaneously be ready to begin building a $LINK (Chainlink) position for our treasury as this investment will require both for an opportunity to grow our treasury passively through Linkpool’s protocol.
Chainlink’s staking program has been long awaited and the team has recently announced news that it will be implemented in the latter half of 2022 which has caused positive price action as investors have taken note. However, the protocol will begin with a limited amount of space and although we will attempt to be a part of their staking program directly we believe Linkpool provides a great alternative in the meantime.
Linkpool is not directly connected to Chainlink Labs as they function independently but they are recipients of a Chainlink Community Grant for their work providing services to the network. Linkpool’s mission statement is to lower “the barrier of entry to meaningfully contributing to the Chainlink network.” Their aim “is to allow people to earn passive income via effortless, trustless staking…and to connect smart contract creators and node operators with the resources they need.”
How Does LinkPool Generate Revenue?
Linkpool runs Chainlink nodes “on all networks supported by the Chainlink protocol”, operates Market.Link, and will generate fees from their stakings pools and NaaS branches and all fees earned will be distributed to $LPL stakers through their “Owner’s Contract”
How Does Staking With LinkPool Work?
By investing in and staking $LPL on the protocol, investors will be given $LPLa tokens (LPL Allowance Tokens) on a 1:1 ratio. This is the first opportunity to generate income. Secondly, the amount of $LINK an investor can stake is dependent on the amount of $LPLA tokens in hand and their team suggests that according to initial estimates, taking into consideration their new token supply, that every 1 LPLA token will eventually allow up to .4 $Link to be staked.
Example taken from their website:
“a user stakes 1000 LPL tokens and receives 1000 linkLPLA tokens. Imagine Chainlink staking has launched, and the ratio of stakeable LINK to linkLPLA is 0.1:1, so the user can stake 100 LINK. Over time, our LinkPool node has grown to require more collateral, so the stakeable LINK to linkLPLA ratio is increased to 0.2:1, so the user can now stake 200 LINK total.”
Additionally, current research shows that approximately 80% of $LPL liquidity is pending withdrawal from Bancor. Speculation could say that this is the majority of holders moving their tokens to begin staking on Linkpool with news of Chainlink’s staking program being released and as liquidity is being drained the window to secure the desired amount of $LPL tokens is closing.
Lastly, this investment would enable us to be liquid as the staking program with Linkpool has no lockup period and if our strategy were to change we would be able to adapt on the fly and this would not be an investment we would be stuck in.
Please be informed regarding our FTM validator that we are currently in communication with the Fantom team as there is an issue with our SFC validator contract. They have informed us they have a fix that was tested on their testnet and will contact us soon when the issue is resolved.