Post
Topic
Board Project Development
Re: Seeking Feedback on a Diversified Bitcoin Income System
by
dodimatto
on 14/01/2025, 15:19:51 UTC
We’ve been actively working on a similar model where we look at how Bitcoin, altcoins, and other crypto-based assets could function within a diversified treasury system. We are currently structuring our system so that a portion of participants' assets will be allocated to a treasury-like mechanism with a 20% contribution, while the remaining 80% can be strategically placed in various liquidity pools and platforms to support buy-side strength and further mitigate market fluctuations.

This setup allows the system to remain flexible while maintaining stability, leveraging dynamic rebalancing and continuous growth in Bitcoin accumulation. Your mention of needing to have a robust buy-side to keep spot market prices stable also resonates with our approach, especially as we explore mechanisms to ensure liquidity without overexposing participants to price swings.

We’re also factoring in stablecoin reserves and yield farming strategies as part of our overall risk management, to prevent the volatility associated with pure cryptocurrency holdings from unduly affecting the treasury. I believe this will complement the broader goal of maintaining asset stability while still offering competitive returns to participants.

In summary, your insights have reinforced the direction we’re taking and opened up new ways to think about optimizing treasury structures. We’re aiming for a balance where treasury-backed assets provide growth, while buy-sides ensure liquidity and buy-back support, much like the approach you've outlined.