This Strategy aims to achieve one simple goal: Maintain majority exposure to LINK to capture its upside while simultaneously taking profits
occasionally during price discovery to hedge against the downside.
Strategy
The LINK Profit Taker Strategy (LINKPT) uses 2 supporting auto trigger indicator to quantify an entry point that lead to it's upside and exit
point, it takes profit by cashing out a portion of its LINK allocation into the decentralized stablecoin DAI during each rebalance starting at
1% of the invested LINK/USD and every time the price doubles thereafter, each time targeting an index of 90% LINK. Additionally, the DAI
allocation will be deposited into the non-custodial money market Compound, which will wrap the stablecoin into the form of cDAI, an
interest-generating version of DAI.
Once a rebalance occurs and profit is taken from the LINK allocation, the next rebalance won’t occur until the LINK/USD price is double
that of the previous rebalance. In other words, this Strategy will only ever take profits when LINK/USD has been moving upwards and
broken previous all time highs. This Set begins at 100% LINK, but over time targets an allocation of 90% LINK and 10% cDAI. If the
LINK/USD price drops, then the percentage of LINK in this Strategy will drop relative to the cDAI allocation. If the LINK/USD price rises,
then the percentage of LINK in this Strategy will rise relative to the cDAI allocation until a rebalance is triggered.
This chart shows an example of how this Strategy works and at which price points each rebalance is triggered. There is no minimum or
maximum trade size.
This is how the LINK Profit Taker Strategy can help you autonomously hedge against potential downside risk while still holding majority
exposure in LINK to speculate on its potential upside gains.
Created by ChainLinkGod
Asset manager, Researcher and news aggregator of Smart Contracts, Blockchain Oracles, and Decentralized Finance.
I am a Chainlink Community Ambassador, Decentralized Middleware Realist, Purveyor of Memes, and a Public Queryable Source for all
things Oracle Related.
