Greetings from Bakuriani, Georgia!

I’m very excited to share already the second newsletter about TerraM token from the cozy GreenWood hotel room in Bakuriani.

This year we decided to come to the Georgian ski resort to celebrate Christmas. Temperature is much chillier than in Tbilisi (-3 C), though there is little to no snow (yet)

While being invested at only 13.5%, our 'poor man's crypto hedge fund' for covered call writing on Ethereum, made already $65, which was already distributed back to token holders and also increased liquidity on the Raydium pool. About 4.73% yield in 7 days.

Trades & Profit distribution

We use the capital raised with TerraM token to sell options on Ethereum, any profit incurred from options trades is distributed back to the TerraM token. 

Our goal is about 25-30% annual growth

In total we had 4 options trades expiring on December 23, 2022, all expired worthless and we booked the maximum profit.

• ETH-23DEC22-1250-C 1

• ETH-23DEC22-1350-C 2

• ETH-23DEC22-1150-P 1

From the option trades with Ethereum tokens on the Deribit trading platform last week, we were able to book 0.05357381432 ETH / $65.41 USD profit.

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 received 0.006541 USD per token (65.41/10,000).

Profit was 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 was kept on the Deribit trading platform to increase buying power.

Liquidity pool

We contributed to the Raydium liquidity pool with USDC/TerraM pair by staking USDC 28.45 / TerraM 31.62.

• Pool liquidity (TerraM): 112.16 TerraM

• Pool liquidity (USDC): 100.94 USDC

This means that basically anyone can buy/sell 112.16 TerraM coins, that’s is about 1.12% of the total token supply. We plan to raise and keep our total liquidity on the Raydium pool to about 3-5% of the total coin supply.

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

Assets under TerraM token

Most of the assets for TerraM token are held in ETH. Makes sense, as ETH is the coin we trade options with on the Deribit trading platform. Additionally, we held 7.3% in USDC and 0.2 in BTC.

88.6%. of the total assets are used for actual trades, while 11.37% are used as reserves. We plan to grow reserves to at least 25% and then rebalance the portfolio

Price:

While we have set the 1:1 ratio exchange ratio between TerraM and USD, on the Raydium network 1 TerraM was trading at $0.89208 (+$0.005)

Swap USDC for TerraM coin on Raydium

The Bottom Line

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 7,753.445444508 TerraM tokens available for investment.

Swap some TerraM on the Raydium or simply hit the reply button to learn about other investment opportunities.