5. CDO Wallet
ComVerse is proud of the growth of the CMGNC CDO wallet over the past year. ComVerse does not use a single-yield strategy but spreads the risk over different LPs and methods to balance risk whilst rewarding the holders with an attractive yield.
Although strategies do need to be agile based on market conditions, the bulk of the distributions should not drastically change as this is a long-term investment and yield strategy.
Below is an exhaustive list of income sources for the CMGNC CDO Wallet to grow the funds long-term based on the success of Combased as a business:
- CMBNC Minting Proceeds (50%)
- CMBNC Marketplace Trading Royalty (30%)
- NFTcommerce Founders Pass (20%)
- Shopify app (NFTcommerce & Fungyy) Revenue (15%)
- Product-Based NFT Marketplace Trading Royalty (50%)
- Combased services delivery (5% of the profit)
$EGLD staking is considered a safe approach. The strategy is to stake in the top 20 sorted by % APY. There may be no availability at the time of wanting to stake, however, the approach should be to be patient and frequent checking for openings as staked EGLD in the CDO Wallet does not get unstaked in the foreseeable future.
Staking should be stacked with existing staked agencies where possible to reduce long-term fee accruals when redelegating or claiming rewards.
The CDO Wallet will fully participate in the xLaunchpad events where possible. Allocation from EGLD Staking / Liquidity Pool distributions may be used to satisfy requirements to participate and buy xLaunchpad tickets.
KYC needs to be done by a sacrificial individual; in the past, it has been Viktor but this could change in the future depending on circumstances.
The strategy to take profit from the new ESDT tokens is as follows:
- Sell 50% of the launchpad allocations at the price discovery in bear markets. Sell 25% of the launchpad allocations in bull markets.
- Sell a further 25% of the allocations during the first 3 days of the xExchange listing in bear markets. Sell a further 50% of the launchpad allocations during the first 3 days of the xExchange listing in bull markets.
- Retain the remainder of the 25% of the tokens, in bear markets stake these ESDT tokens, and in bull markets, create LP tokens and metastake these tokens.
The liquidity pools to choose from are dynamic and can adapt based on market sentiment and conditions. Below are guidelines for actioning these liquidity pool allocations:
- Once an LP is created, do not withdraw unless absolutely necessary. This is to prevent any impermanent loss from becoming permanent.
- Leveraging USDC/EGLD LP allocations heavier during bear markets (75% of allocation) and less during bull markets (25% of allocation).
- Leverage blue-chip LP allocations (UTK, RIDE, etc...) during bull markets (75% of allocation) and less during bear markets (25% of allocation)
Any metabonding rewards are claimed every 6 months and are distributed to Alpha holders based on Q2 or Q4 snapshots. These Alpha tier holders must satisfy having/holding 2D Combey, 3D Combot, Pixel Combien in their respective wallets in order to qualify for the metabonding distribution.
As xExchange evolves, stablecoins will be created and will potentially have yielding capabilities as well as a hedge against volatility.
The CDO Wallet must absolutely take advantage of this when available, to hedge against the market downside.
When this feature is available on MultiversX, the income distribution will change from:
- 50% $EGLD Staking
- 50% LP Yield
To the following distribution:
- 34% $EGLD Staking
- 33% LP Yield
- 33% Sell to Stablecoin
Having stablecoin in the CDO Wallet hedges the overall portfolio from drastic downside during bear-market phases. Furthermore, to hedge against market volatility, the following strategy needs to be considered and actioned:
- Sell an additional 5-10% of staked $EGLD when the $EGLD weekly timeframe makes a bearish divergence with RSI above 75.
- Buy an additional 5-10% of staked $EGLD when the $EGLD weekly timeframe makes a bullish divergence with RSI below 35.