13/Transfers made by the internal treasury are disclosed on a regular basis. The internal treasury can be accessed by a 6-9 multi-sig admin key - meaning at least 6 of the 9 listed members need to come together to access the funds.
12/SUSHI DAO’s internal treasury currently has ~33m $SUSHI tokens worth ~$210m. The internal treasury funds are used to pay annual expenses (developers, marketing, growth, etc.) and act as a rainy-day fund. https://t.co/pyV9HJ36n7
4/Thus, the crypto investment decisions made by retirement funds are likely to turn into cash in 2-3 years. I believe the retirement funds will commit an increasing amount of capital every year and will be a stable long-term capital source for the crypto market.
1/Since retirement funds, endowments and SWFs don’t mind keeping capital locked for 10+ years, they’re likely to invest in crypto through top-tier crypto VCs like @a16z@polychaincap@multicoin@dragonfly_cap
13/Because there is less AVAX and more USDT in the pool – in other words, because there is more demand for AVAX than USDT, AVAX price algorithmically goes up. This is the answer to the question asked at 9/. Let that sink in.
16/AMM pools don’t communicate with the real world. Although a price hike might happen and AVAX may trade at $15 on a CEX like Binance, AVAX/USDT will still trade at $10 on Uniswap.
17/This creates an arbitrage opportunity for traders to buy AVAX on Uniswap at $10 and sell on Binance for $15 until enough people execute this trade and the price on Uniswap is corrected to $15.
18/Due to the difference between the AVAX price trading at CEXs and AVAX price trading at a Uniswap, Uniswap AVAX/USDT LPs sell AVAX at a lower price. That is money left on the table for LPs and is the fundamental reason behind impermanent loss.
19/If AVAX becomes $20, someone who simply hodls can make 2x while an LP makes 1.7x due to impermanent loss. Then why provide liquidity? Because being an LP is incentivized by fees and rewards which I’ll talk about in detail on another thread.
6/Counter Argument 3: NFT owners don’t mind their NFTs getting copied and used as social media avatars as it increases visibility and demand for the original NFT.