Vinyl Strategies
info
Below are certain optimal strategies for protocol health depending on the TWAP of VINYL.
TWAP Below 1.0 (VINYL < 1 FTM)
Goal: VINYL is below peg. We want to bring it back to or above peg quickly and sustainably. Continuing holding, buying, or otherwise burning VINYL (through buying CDs (bond), raffles or other future initiatives).
Step 1: Purchase VINYL to form a VINYL-FTM LP
Step 2: Stake your VINYL-FTM liquidity pair in the Club to earn TRACKS.
Step 3: Buy more VINYL and combine with your TRACKS rewards to create VINYL-TRACKS LP Tokens.
Step 4: Stake your new VINYL-TRACKS LP in in the Club's VINYL-TRACKS reward pool.
Step 5: Repeat, which helps the protocol and builds wealth even while under peg.
TWAP Between 1.0 & 2.0 (1 FTM < VINYL < 2 FTM)
Goal: This is the ideal zone for the price of VINYL and we would like to keep it here. We should not be selling our VINYL rewards at this point and continue to let the rewards compound.
Step 1: Purchase VINYL to form an VINYL-FTM LP
Step 2: Stake your VINYL-FTM liquidity pair in the Club to earn TRACKS.
Step 3: Stake your earned TRACKS in the Studio to earn VINYL. Take a 10% portion of your VINYL and TRACKS rewards as profit (optional).
Step 4: Create an LP with your TRACKS and earned VINYL from the Studio to form VINYL-TRACKS LP tokens or create more VINYL-FTM LP tokens.
Step 5: Compound your VINYL-TRACKS LP or VINYL-TRACKS LP in the Club's reward pool.
Step 6: Repeat! Compounding keeps the price steady, increase your overall rewards, and maximizes profit.
TWAP Above 2.0 (VINYL > 2 FTM)
Goal: This is the zone where we want to encourage responsible profit taking in order to lower the price closer to peg. In other words, bring the price of VINYL down to less than 2 FTM.
Step 1: buy and stake TRACKS in the Studio
Step 2: Take profits of 20% of Vinyl (optional) Split remaining TRACKS into to a VINYL-TRACKS LP, TRACKS-FTM LP, or VINYL-FTM LP
Step 3: Stake your LP in the Club
Step 4: Compound 100% of your TRACKS in the Studio.
Bonds: Sell CDs, aka Bonds, in return for VINYL in the Shop. This is zone where the sale of CDs make the most sense as you get the greatest premium and reduces the risk of bouncing VINYL back below peg.