# APPROVED Treasury Proposal #1

### Executive Summary

This proposal outlines a strategic initiative to optimize the Renegade Treasury by leveraging opportunities within the Hedera DeFi ecosystem. The plan aims to grow the treasury, maximize rewards, and enhance participation in Hedera's DeFi landscape.

### Key Objectives

1. Strategic HBAR Retention: Maintain a substantial $HBAR position to capitalize on its growth potential in the current market climate.
2. Diversify into DEXs: Invest in leading Hedera-based decentralized exchanges (DEXs), including SaucerSwap, HSuite, and Silk Swap.
3. Exposure to AI: Allocate funds to $HAI, a prominent Hedera-based AI tool, to gain exposure to blockchain-integrated artificial intelligence.
4. Ecosystem Participation: Utilize HBAR holdings for active participation in Hedera's DeFi offerings, such as liquidity provision and yield farming.
5. Passive Profit Optimization: Establish passive income streams to grow the treasury and boost rewards through low-friction strategies.
6. Long-Term Value Creation: Position for future price appreciation while supporting the broader growth of the Hedera ecosystem.
7. Initial Strategy Timeline: Three months with a review before the end of that period.

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### Primary Strategy: HBAR/SAUCE V1 Farm on SaucerSwap

This strategy utilizes the HBAR/SAUCE liquidity pool on SaucerSwap V1 as the primary revenue-generating mechanism.

### Key Features:

* Solid APR: Currently offering \~26% APR for significant returns.
* Compound Rewards: Reinvest a portion of earned rewards to boost effective APY.
* Dual Rewards: Stake LP tokens via SaucerSwap's Masterchef contract for dual rewards in $HBAR and $SAUCE.

### Benefits:

* Generates additional revenue within the Hedera ecosystem.
* Provides a low-friction method to earn returns on HBAR and SAUCE holdings.
* Rewards include $SAUCE and $HBAR tokens through V1 farm incentives.

### Considerations:

* Variable rewards based on trading volume, pool liquidity, and market conditions.
* Smart contract risks inherent to all DeFi protocols.<br>

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### Secondary Strategy: Silk Swap LP - HSUITE/HAI Liquidity Provision on Silk Swap

This strategy focuses on providing liquidity for HSUITE/HAI pairs on Silk Swap.

### Key Features:

* High APY: Earn 60% APR in $HAI for liquidity provision.
* Additional FABRIC Rewards: Receive Silk Swap FABRIC tokens as extra incentives.
* HTS Token Rewards: Gain exposure to various Hedera Token Service (HTS) assets.

### Benefits:

* Diversify portfolio within the Hedera ecosystem.
* Offers higher overall returns through trading fees, APY, and token rewards.
* Supports the growth and liquidity of Hedera-based DeFi projects.

### Considerations:

* Risk of impermanent loss if HSUITE and HAI prices diverge significantly.
* Token volatility potentially affecting overall returns.<br>

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### Holding Strategy

* Maintain a portion of the treasury in Proof-of-Work (PoW) assets such as BTC, LTC, and DOGE for diversification and stability.

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### Risk Management

1. Regularly reassess allocations based on market conditions and protocol updates.
2. Monitor for potential liquidations or exploits in lending platforms.
3. Diversify strategies to mitigate overall portfolio risk.

### Treasury Allocation Strategy

1. 65% allocated to [HBAR/SAUCE](https://www.saucerswap.finance/liquidity/0.0.1461945) Farm LP.
2. 25% allocated to[ HSUITE/HAI](https://silkdefi.app/#/exchange) LP.
3. 10% reserved for BTC/LTC/DOGE holdings.

### 3-Month Mining Allocation Distribution (18%)

1. 80% allocated to compounding Primary and Secondary Treasury Strategies.
2. 20% reserved for Renegade Treasury accumulation (Hold Strategy).

### Implementation Timeline

* If approved by vote, this strategy will be implemented by April 16th, 2025, and practiced over three (3) months.
* A revision is scheduled before the end of this timeframe (June / July, depending on deployment time).&#x20;
* The rewards accumulated will be used to compound strategies.

### Conclusion

This proposal offers a robust framework for optimizing treasury management by leveraging yield-bearing opportunities within Hedera's DeFi ecosystem while maintaining flexibility through diversification. The outlined strategies emphasize long-term value creation via investments in SAUCE, HSUITE, and HBAR, with potential returns scaling significantly over time through LP participation.