JPEG’d treasury is currently idle with WETH and stables that can be farmed to generate yields, it is possible to interact with Liquity’s immutable contracts to generate returns in a low-risk manner
The aim is to obtain more treasury assets at bargain price with minimal risks.
The best and cleanest indicator of a bottom is liquidation.
In the last correction, it was possible to automatically buy ETH in the stability pool @$850 when the market price was @$875 thanks to liquidation events.
JPEG’d as a DAO can utilize Liquity’s stability pool to “fish” for ETH at a discount in this manner, given generous safety margins.
Deposit roughly 33%-50% of JPEG’d WETH into Liquity’s smart contract to mint LUSD to farm LQTY while fishing for ETH liquidations via Stability Pool with a health factor between 1.7-2.5
- If health factor is above 2.5, mint more LUSD to deposit into Stability Pool
- If HF is below 2.0, return some LUSD and WETH to restore HF to 2.5+