Thoughts around the CoreVerse treasury

This post is because I reference what I write here in other of my suggestion posts. So it is to structure it in one place instead of several posts.

Thoughts around the CoreVerse treasury.
Disclaimer: This post is my interpretation of the structure and concept behind the treasury. Everything is totally up to the developer’s discretion to do whatever they want and think are the best long-term for the project and ecosystem. I am just putting forward how I interpret it by how it has been handled so far and what I find extremely attractive by it.

It was noted in a medium article by 0xdec4f Feb 17th, 2021 (1) that you «soon would be able to loan out your CORE LP for 25% of the floor price of those LP».

The LP’s value due to AMM’s mechanics, ideally consisting of 50% CORE token and 50% ETH/BTC/DAI. This somewhat represents that you could borrow half of the value of what the externally value-given token represented. What I mean by this is that the amount you could borrow was half of the value that was externally sellable outside of CoreVerse(ETH/BTC/DAI). It would explicitly, as stated, consist majority by DAI, which would safeguard it against volatility.

If we, for the sake of argument, then say that the $1 you can take out in personal loan on cLend equals half of the external value, and thus that there remains approximately another $1 per CoreDAO in the treasury.

This is an oversimplified calculation, as I know there have been transactions to other things along the way, so I am working on mapping out that as well and will update the post when I am done mapping it all out. But for the sake of argument, let’s assume the following statement to be true:

«In CoreVerse there is a floor value on several of the different tokens, backed by externally valuable tokens, whereas half of it is made available as a personal loan through cLend using the token as collateral, which carries 20% yearly interest. And the other half is in the treasury, which its investments and movement in and out of other crypto investments are managed by the DAO.»

For me, this is extremely attractive as that gives you, as a holder of said token, several advantages:

You can, in times you need liquid assets, get a loan on your tokens without having to sell them.

You have an indirect stake in the DAO-controlled treasury that hopefully grows as it is managed by hopefully more skilled people than yourself, that, amongst other things, achieves a greater risk diversion given their size, etc.

The last point here is why when liquidations on cLend occur, the tokens you own kind of get a value increase as fewer tokens that has an «ownership» in the DAO-controlled treasury your relative % of that increases as the amount of token is reduced.

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