SIP-007: The Mothership

General
1

With the passing of SIP-005 and SIP-006, this past Monday STFX DAO executed the (1) Reduction of our Uniswap liquidity by -25% and (2) Burned the $STFX portion of the reduction.

The next item on the agenda is to finalize what the STFX DAO should do with the $ETH component of the reduction.

As preliminarily discussed in the STFX DAO Discord earlier this week, we would like to propose to dedicate the $ETH portion of the liquidity reduction (approximately $83,000 worth of $ETH at current prices) towards a dedicated fund called ”The Mothership”.

The singular role of the Mothership will be to invest in STVs on the STFX Platform, with specific rules and conditions for both Managers and STVs, which can be adjustable by the STFX Community via DAO Governance.

As the baseline, the first iteration of the Mothership rules, we propose to follow the following heuristics:
⁃ Focus on Managers with positive PnL
⁃ Try to risk 0.2-5% of the portfolio on average
⁃ Prioritize investments to Traders with a proven track record
⁃ If the manager you are planning on investing in lost money on the previous vault, decrease the amount you invest in their next vault by 20-30%
⁃ If the manager you are planning on investing in happened to turn a profit on their previous vault, increase the amount you invest in their next vault by 20-30%
⁃ If the manager you would usually invest in had a streak of losses recently, decrease the amount you were planning to invest
⁃ If the manager you would usually invest in had a streak of wins recently, increase the amount you were planning to invest
⁃ If the manager invested their own money into the vault, treat it as a positive sign
⁃ If the manager had a particularly high drawdown in the previous 1-2 trades despite closing the vault in the green, decrease the amount you were going to invest
⁃ Avoid investments being stuck in one vault for too long waiting to get back to breakeven or profit. The best wins are fast wins
⁃ Avoid managers who “hoard” the money for too long whether it is the Fundraising stage, Prep stage, or Live stage.

The Mothership will be operated by 4 individuals: 2 members of the STFX Core team and 2 members of the STFX Community together referred to as the Mothership Board.

As an additional form of $STFX token utility, eligibility for the Mothership investments will require the Manager to have staked at least 100,000 $STFX tokens.

We believe the Mothership will be a strong addition to the Manager experience, and will have synergies with the upcoming Stake2Boost system which will also raise Max Vault Sizes up to $20,000.

4 Likes
2

I like the plan! Would be great to see progress reports on a weekly basis or so

3

One of the better proposals so far imo. This opens up even more benefits to the incoming stake2boost feature, and a great way to utilize the capital already pulled from the liquidity pool. definitely a yes from me

4

I agree, one small comment though we should keep in mind that the 100,000 $STFX requirement will probably have to be adjusted depending on the $STFX price as we progress.

5

I am in favor of this proposal as long as the specific rules for the investments can be adjusted depending on the performance of the investments. I do think that stimulating the STFX economy at this early stage is a net positive that can lead to a strong organic momentum.

6

I believe the Mothership is an excellent opportunity to showcase the huge potential of the product.

Big fan of this proposal

7

This is a great idea! I think the mothership will continue to evolve and will be a great addition to STFX. I think the two non-team board members should serve terms and be voted onto the board.