First, a MASSIVE thank you to every ape for your response to our 2nd ETP announcement!
Your enthusiasm for combining the Wall Street Bets movement with Decentralized Finance propels us forwards!
Now, given recent events in the crypto market, it’s time we explain our current vision so you know what the $WSB moon path looks like.
There is a lot of concern in regards to the weight of the USD, especially since it is at risk of losing it’s global reserve currency status. As of right now, roughly 60% of central bank reserves are held in dollars, which is a decrease from previous decades — a trend that is set to continue.
Fortunately, we are discussing options in our governance page. Join now and jump into the conversation!
Like any other Indices, we will be voting (as we did on ETP #1) on which assets will become eligible for the next rebalancing. After we find out what the eligibility criteria looks like, we can create the asset universe. This will help us filter down constituents to create an effective ETP. And these initial Assets/Tokens will come from a running “wishlist” that the community would like to include in this ETP.
The end goal is to create an ETP that makes the community happy and not just one that looks good “on paper.”
ETP #2, also known as the WSB Macro Hedge ETP, has three goals:
1. Capture long-term capital growth and outperform inflation; aiming to retain purchasing power
2. Represent real-time market performance of a crypto basket, fiat, precious metals and other tokenized assets.
3. Physically hold underlying assets in a non-custodial way; powered by Balancer protocol.
The ETP is owned and administered by the WSBDApp under the following principles:
Principal Investment Strategy
The ETP is a passively-managed exchange-trade portfolio that seeks to achieve its investment objective through the following sources:
• Fiat-linked crypto stable coins
• Tokenized Commodities
• Crypto native assets
All of these items are expected to directly or indirectly benefit from rising prices. The idea is to mitigate or eliminate the downside of systemic risks by referencing a portfolio of assets based on some of the following macro factors:
• Economic Models
• Market Conditions
• Historic Trends
• International Relations
Asset Constituents & Weights
Currently, Gold has an 80/20 split. But this will reduce overtime when more assets are added to the mix. So the WSB Macro Hedge ETP will hold the following assets and weightings at inception:
Instead of taking 5 years to rebalance, we plan on doing that in 2 months. This will let us see how well the ETP performs and give us more time to include other constituents from the Asset Universe.
Current Wishlist Items
This is what the Wishlist currently looks like:
• GBP Stablecoin
• JPY Stablecoin
• CNY Stablecoin
• CAD Stablecoin
• Further Tokensized products
To get an item added to the list, join our governance board and jump in the conversation.
Portfolio Management & Expense Structure
The following chart goes over the fees and expenses a user will pay to create or redeem units in the ETP.
Unit holders may also have to pay transaction fees such as network gas on deposits and withdrawals of the ETP.
For ETP #2
Voting will work the same as it did for ETP #1 — it will go to a $WSB Token vote for yes/no to proceed with this product. This vote will go live in the next day or 2 and will likely have a shorter voting period than last time.
If the vote is approved via majority ‘yes’ vote, then the product concept is approved and will be scheduled for construction.
When are these ETPs going live?!
• The WSB website front-end and web3 integrations are complete!
• The last remaining code will be finished this week. This will include new parameters.
• In 7–10 days, coding will be finished and the 3rd party code-audit begins.
• We can launch 1 or both (if the vote is approved by then) of the ETPs from there (mid July)
We have a completely new product coming along! It will probably launch before the ETPs.
And an updated WSBDApp product roadmap and fees summary is also on the way!
This is going to be a HUGE July!
Apes! Together! Strong!