5.0 Decentralized Finance Strategies
Decimus DeFi Thesis
The Decimus Dynamics Project holds positions in a portfolio of medium and high risk DeFI plays. It is the Decimus Dynamics Project (Company) that earns rewards from the decentralized finance plays that the project participates in.
With mulitple DeFi plays our Decimus fund manager has sought to create a balance of medium risk and high risk opportunities to participate in. Some of these opportunities distribute rewards once a month, some of them are set to mature after three months while other opportunities don’t mature until 18 months or even two years.
Our strategy is to think about every DeFi move we make with a really long time horizon. With a priority of out performing our Mobile Fortress monthly airdrop with the net gains earned. So whether we take rewards after one month from one of the plays we are in, or weather we take rewards from a DeFi play with a three month cycle or longer; we always make sure that the rewards we pull out to airdrop to our Mobile Fortress holders is less than the amount we are able to multiply and/or compound month over month as we continue to build Decimus Dynamics project treasury.
Decimus Decentralized Finance F.A.Q.
Rev Share is often described as a Ponzi and not sustainable. What would you say to your naysayers?
We use the term “rev reward” rather then the phrase “rev share”. Also the past structure and marketing of rev share just wasn’t sustainable. Because most NFT project founding teams put their salaries above the return to holders. And before royalty enforcement was dropped most of the NFT project revenue was driven by royalties, which at least brought in a certain amount of revenue that could be measured. After ME discontinued royalty enforcement volume dropped across the board and projects that relied primarily on royalties were exposed. In today’s landscape the burden lies on the shoulders of founders to find real revenue. Decimus was structured from mint to have external revenue outside of the solana ecosystem. Because Decimus secured positions in DeFi plays that are not on the Solana blockchain, Decimus is a cross-chain DeFi/NFT project so primary source of revenue has been from multiple sources that does not rely on secondary sales of Decimus NFTs. And to avoid ever becoming a “ponzi” Decimus prioritizes holder rev reward without ever out-distributing our variable returns from DeFi.
How will the project treasury balance in defi grow?
The project grows slowly but steadily through its wins. Present and future value is closely monitored so the rev rewards to Decimus holders does not out-pace DeFi growth. It is a fact of the matter that there is still risk involved in DeFi as a model, so there is a chance we have to start over but based on our track record and projections for the future, we believe we are in a good position for growth.
(This is more thoroughly explained in Section 5.2 of this Whitepaper)
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