NMR Token Price Hedge/Stability

Numeraire
1

Hello, can the hedge fund provide any guarantee on the NMR price to mitigate currency risk?

I was thinking of staking my model a week ago, but thought crypto may drop in price with the incoming market situation. I luckily was not exposed to the drop in price.

Can the hedge fund guarantee some floor on the price? Otherwise I am not sure if I will be able to make sufficient corr/mcc return to compensate. I am also open to the idea of purchasing insurance.

I believe the main reason to hold NMR is to participate in this tournament. Because our participation would be important for the fund’s meta model, it seems the fund’s interest and ours should align to create a more stable currency for staking.

Thank you.

1 Like
2

See the following discussion and suggestions put forth:

3

Thank you for sharing and I enjoyed the discussion. They brought up several good points, and I believe the key focus should really be on the symbiotic relationship between us tournament participants and the hedge fund.

I planned to stake about $10,000 on my model initially, but was hesitant when I saw NMR at $27. Had I done so, my loss from its price depreciation to $21 is already 22%. I will need to find 28% of gains, about 10 weeks of consistent 2.5% weekly returns to break even.

I am not even too concerned about what happens when the treasury runs out. I am really just concerned about NMR price speculation. It would be great if NMRs appreciate in price like they did several years ago from $3, but that is not the reason I want to hold and buy the asset. I only want to participate in this tournament because I trust my predictions and I don’t want to figure any math between choosing to liquidate my NMR position at some price points vs my potential return from staking. It is already complicated enough as it is.

I understand why the stakes need to be in NMR. For the earning and burning and the anonymity. But I would 100% prefer if we used US Dollars instead since all my other consumption is tied to that. I just figured others would also feel similarly after last week so it seems to be a good time to get a consensus going if any.

4

NMR’s price rise, like that of many other assets, seems to have been intimately tied to the pandemic. In March of 2020, it was still trading at around $6.00. That’s unwinding and I expect the asset bubble that arose over the last two years to do so as well. So be patient and wait for it to find a natural floor.

3 Likes
5

Yes, I feel that is true. I just don’t want to play that game. I’d probably rather buy insurance than speculate on this. Even though I gave it some thought already just out of curiosity, I feel there’s probably many more nuances I am not familiar with.

1 Like
6

You may be interested in Kashi NMR Borrowing: Stake on Your Model Without NMR Price Exposure | by Gosuto | Medium

You might want to overcollateralize the borrow, so you don’t get liquidated with sudden spikes in NMR price (say $20k collateral for a $10k borrow).

7

That is very interesting, thank you!

But reading this article, I wonder why we just don’t have the option to use USDC, or the Numerai version of it.

8

because free money, duh

2 Likes
9

Sadly, AFAIK there is no lending service that has nmr listed yet. If you know any, please share I would gladly hedge my stake.

10

Been on Kashi for at least 6 months I think. Whether it is worth it with current fees etc I don’t know. Haven’t heard anybody talk about it in a few months…

1 Like
11

I suppose it is not a big enough deal right now to make me not participate. Just not as much as I originally was thinking before realizing there was some not insignificant currency risk