#4 TerraM token update: +4.34% yield in 7 days
Greetings from Tbilisi, Georgia!
I'm bit late with this Fridays token update, as we had an office party and for most of the time, during the day I was away from the computer screen. I hope someday we will be able to throw a seperate party for TerraM token, but meanwhile:
While being invested at only 17.75%, our 'poor man's crypto hedge fund' for options trading on Ethereum, made quite decent $76 from 4 expiring options trades this week.
All profit was distributed back to the token holders + used to increase liquidity on the Raydium pool. About 4.34% yield in 7 days.
Trades & Profit distribution
We use the capital raised with the TerraM token to sell options on Ethereum, and all 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 January 7, 2022, all expired worthless and we booked the maximum profit.
Additionally, as our strike, price of $1,250 got challenged, we rolled up and forward one options trade with an original expiry date on Jan 13 to Jan 27.
ETH-27JAN23-1300-C sell 2 0.034
ETH-13JAN23-1250-C buy 2 0.031
From the option trades with Ethereum tokens on the Deribit trading platform last week, we were able to book 0.0608 ETH / $77.09 USD profit.
Every week on Fridays (after options expiry on the Deribit platform) we 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 0.00608 USD per token (77/09/10,000).
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.
Since the inception of the TerraM crypto hedge fund, we have already made and distributed $253.18 or about 14.21% yield
Open options trades
At the time of writing, we are holding 8 options trades open on Ethereum, with expiry dates on January 13, January 20, and January 27
We contributed to the Raydium liquidity pool with USDC/TerraM pair by staking USDC 26.84 / TerraM 29.82.
Pool liquidity (TerraM): 175.85 TerraM
Pool liquidity (USDC): 158.27 USDC
This means that basically anyone can buy/sell 175.85 TerraM coins, which is about 1.75% 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 the 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 reserves of 8.83% in USDC, 8.52% ETH, 0.68% in BTC and 0.09% in SOL
USDC: 158.27 (+26.84)
ETH: 0.1208 (+0.0349)
BTC: 0.00071928 (+0.00023879)
SOL: 0.12358703 (+0.12358703)
Tradeable ETH: 1.161 (+0.061)
We decided to add SOL token to the reserves, as TerraM token runs on the Solana blockchain it would be no harm actually keeping some of the TerraM value also in SOL. For now we have decided to distribute 2% token profit into SOL coin.
81.9%. of the total assets are used for actual trades on the deribit platform, while 18.1% are stored as reserves. We plan to grow reserves to at least 25% and then rebalance the portfolio
While we have set the 1:1 ratio exchange ratio between TerraM and USD, on the Raydium network 1 TerraM was trading at $0.89165
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 7,542 TerraM tokens available for investment.
Swap some TerraM on the Raydium or simply hit the reply button to learn about other investment opportunities.