Greetings from Tbilisi!

Despite halfway already in December, the weather is quite nice with temperatures hovering around +17C.

I’m very excited to share the very first newsletter from the TerraM token adventures in the blockchain world.

Last week we minted 10,000 TerraM tokens on the Solana network while raising $10,000 from private investors to invest and trade covered calls with Ethereum.

It has been a great week, both because of the Token launch and also because of the first results with profit sharing among the token holders.

We were able to attract the first investor for the 50 TerraM tokens and we are more than happy to share the profit from this week’s trades with our first investor

Trades & Profit distribution

We use the capital raised with TerraM token to write covered calls on Ethereum, any profit incurred from call options is distributed back to the TerraM token. 

Our goal is about 20-25% annual growth

Here is how it works

Bob decides to invest $1,000 in TerraM coins. Bob exchanges $1,000 USD for $1,000 USDC and swaps them for $1,000 TerraM on the Raydium network.

TerraM coin will invest 50% in buying Ethereum to sell covered calls, and the rest 50% will be kept as a cushion in USDC. 

From the covered call trades with Ethereum tokens on the Deribit trading platform, we were able to book 0.02050673717 ETH / 24.8 USD profit

We tend to write call options and hedge them with futures.

Sometimes we sell put options to boost the income. This Friday we got “lucky“ hedging a $1,300 put option with a short $1,300 future, (we were able to enter the trade at $1,294) - and it worked great.

Despite our loss on the put option, we were able to recover the loss with a short future.

Every week on Fridays (after options expiry on the Deribit platform) we plan to distribute profit back to the token holders + increase the liquidity pool to guarantee enough coin offerings on the Raydium exchange

As TerraM's total supply is 10,000, this week each token holder will receive 0.00248 USD per token (24.80/10,000).

Profit will be distributed in form of additional TerraM coins to the token holders from the TerraM token address with balances larger than 20 TerraM. any uninvested token profit will be left inside the deribit trading platform to increase buying power.

After the first week, there are

Liquidity pool

Additionally, we contributed to the liquidity pool with USDC/TerraM pair by staking USDC 9.8225 / TerraM 10.91.

• Pool liquidity (TerraM): 80.54 TerraM

• Pool liquidity (USDC): 72.48 USDC

This means that basically anyone can buy/sell 80.54 TerraM coins, that’s is about 0.8% of the total token supply.

if you are interested to invest in more tokens than currently available on the Raydium platform, contact us to discuss the offer.

Price:

While we have set the 1:1 ratio exchange ratio between TerraM and USD, on the Raydium network 1 TerraM was trading at $0.887, as there are just 80.54 TerraM coins in circulation we are not advising buying more than 10 coins from the Raydium network at the moment.

Swap USDC for TerraM coin on Raydium

We are truly excited at the start of this journey and we hope to be fully invested by mid-2023, until then, there are still 7,904.950158366 TerraM tokens available for investment. Swap some TerraM on the Raydium or simply hit the reply button to learn more