Decentralized Finance Index

Bad timing on my entry? Not really, poor preparation led to poor performance, I had rules set for the downside, however once they got triggered the first time they were disabled. Lesson learned, moving forward I will be ensuring there are rules to protect our downside as the markets continue to move, that being said, the current pullback isn't something that has me concerned, we've rocketed up several hundred % on most of our holdings since January, it was only a matter of time. These type of retraces are usually setups for the following move higher, as buyers cannot push price up forever without sellers taking hold. I believe the best course of action at the moment is to sit tight, the next few weeks should look pretty good for us. :)

I've repurchased our shares of CRV and FXS at a much lower cost basis than we sold them at earlier this week, very nice. Market is ripping today, love to see it :)

Seeing a bounce now on BTC, if we break above 22k I will repurchase half the shares we sold at 22,222, and upon close above 22100 I will repurchase the other half. Want to ensure this isn't a fakeout, whilst still repurchasing our shares at a lower cost basis.

BTC just broke through support at 22k, upon doing so our automatic rebalancing rule was triggered, cutting all our active positions by half and moving those gains into USDC for the time being. When BTC reaches the nearest local support level ($21k) I will redeploy 50% of our cash position. If it happens to break through 21k and head toward 18k we will then deploy the last of our cash reserves to buy there. In my opinion this pullback is meant to trap bears and will ultimately rip to new local highs in the coming days/weeks.

BTC is dropping fast and teetering on support right now, as I mentioned I am watching for a definitive move here. I've created a rule that will trigger if we do break below support, this should lock in most of our profits over the last month or so, giving us the opportunity to buy back in at a lower cost basis

Market will not go to all time highs this year

But I do think it’ll go higher than most believe just like it went lower than most thought

Hope everyone had a nice weekend! Yesterday we saw Frax rise over 30%, following the recent market interest in Ethereum LSD's. Frax is the number one ETH LSD and it's not even a competition, we've invested in frax over a year ago before anyone was talking about it, now twitter will have you believe frax is the next big thing, they're not wrong. It's nice to see the market catching up to your highest conviction positions, this is why our fund is primarily made up of Frax, Curve, and Convex. The holy DeFi trinity, each of these projects has extreme potential. At some point FXS will surpass $100 and looking back, it will have seemed inevitable. The market rewards those who are patient, as we have been. Remember to keep your heads down and invest what you can afford to when the market is DOWN, I always see our fund getting more contributions on days like yesterday, after we pump 30%, however the best time to enter is after a severe market pullback, as you have a much higher chance of profit. My own strategy over the last year has been to simply invest $200 a month, regardless of prices. As always, I will be watching for signs of a momentum shift in the market, as soon as bitcoin shows a clear direction I will put strategy rules in place to protect the gains we have seen over the last month, until then, enjoy the ride!

Hey all! Hope that everyone is enjoying time with their loved ones throughout the recent holidays. Just want to update as market is giving us a relief rally now, we missed our opportunity to sell when things came crashing down last year but I aim to capitalise on what I believe to be a short term bull market in crypto, I wont be making any immediate structure changes as I still hold conviction in our positions, however I will be closely monitoring the market for an opportunity to sell when things get too euphoric and seem they may roll over. On a macro level we are still in a bear market, dont get caught up in the price action. My next update will come when market shows signs of exhaustion and I rebalance our strategy to lock in the recent gains.

I hope you enjoyed this, I had to put together something substantial to culminate my thoughts, and make up for my absence. If you have any questions or fail to grasp any of the aforementioned concepts, google is your friend  For those who would like to read this in its entirety here is the entire writeup on google docs. https://docs.google.com/document/d/1ibtQPfwGIGzaoEcoJ9R5v_h7aQuvrDwVLTd0xYipxJo/edit?usp=sharing

22/22

This All Sounds Great, So When Bottom Ser? - It's tough to tell. I think we are within striking distance of a meaningful bottom. Maybe we have another 20-30% of downside to go, but that pales in comparison to the asymmetric risk reward of what's to come for DeFi in the next decade. We are likely to consolidate for a period of time, before emerging into the next stage of the DeFi bull run. But expecting DeFi tokens to ultimately go to 0 like a lot of people - well, that's just plain silly.

21/22