We are currently in a bull market, we have seen what occurs in these cycles.
I want to open discussion on potential to convert a portion of the SLP to stablecoin.
Details specifically that would need to be discussed:
-How much (50%, 75%)
-When to make the move (is it specific HBAR price?, Volume metric?) Reputable TA person(s) opinions could possibly be contracted to provide best analysis for execution. (Who?)
-When to convert back
-how is this done (contract?)(legality)
Open to any and all other discussion but, we roundtripped the last cycle with our SLP, Iād be a poor delegate/steward of our SLP if I didnt bring this up for community discussion.
To expand upon this, we could later lock a portion of the set aside funds into credit union deposits or the like, to leverage interest, if nothing better comes along. (Lending would continue via the stable/deposited funds so long as demand is there)
That can be coordinated a bit later though, primary focus would be the main points above.
If its been date consistent then we can look to that, weād want to focus on altcoin dates (id estimate a range), but with Hedera doing itās thing for only its second cycle, Iām not sure just going by a date alone would be best, Iād definitely want those with far more experience in evaluating dates, volume, and the like to be those that make the threshold recommendation, I just want to make sure we preserve SLP as much as possible for the inevitable bear that follows the bull runs.
Perhaps one way to do it is like a āreserveā concept for banks? e.g. by law, FIs are required to maintain a reserve pool of liquidity to address any potential bank runs.
As to how much, it would largely depend on how close we are to delivering our first products (CU loans). If we are expecting to lend out in the next month or so, then maybe keep a majority of the SLP ready for lending out.
If I had to make an estimate, roughly 15-20% kept in Stablecoin (or other worthy and convertible instruments), and the rest for CU loans.
I think we should make both a time and price plan and stick to it. We need to lean on conservative side for this. This would be my estimate
Time: April 30, 2025 (I am expecting the cycle to last much longer this time and peak around mid Summer for Alts but this is conservative)
or Price $1.00 HBAR (I personally feel HBAR will go much higher this cycle seeing what it has done so far this year but this is conservative.
Whatever one we hit first we move.
Once we move, we should select either a CU high savings, CD, or stable coin that is safe that earn interests. Once this is done, it should always remain in a safe stable account. The purpose of the SLP is to give loans, and not invest in crypto assets that can go way up or way down and trying to time it. and we canāt risk it with keeping it in crypto. We need to run like a business and essentially this is liquid cash on hand to give loans. I hoping we also donāt have much sitting idle ever again once we get some CU partnerships in place to have a constant flow of loans.
I like that thinking and it makes sense. The fee pool can ride for the ups and downs but the operating (Lending) capital should definitely be preserved and avoid the downside risk as much as possibleā¦ two pools essentially.
Would appreciate some extended hbar/market discussion to help narrow the āwindowā.
Some folks with extensive background in market research, TA, and proven success would be excellent.
Last cycle may was a false top, the actual top was mid Nov 2021, top before that was early Jan 2018. If we follow that there is an argument to be made for late September 2025 as the cycle top. We donāt need the top though to preserve SLP gains just not the bottom. As far as converting back the market bottom is generally 1 year after the top.
I wouldnt want them to be locked up, just locking in the appreciated value. Probably some good further discussion needed on what products to consider. Even further diversification potential.
Furthering this discussion we have the Ethereum pool set aside still. If the average cascade would cause ETH to pote tially peak before HBAR, we should assess when/what to put the ETH pool in. Would resolve having not yet migrated and begin making it work for us.