Nouns have accumulated a significant amount of assets in its treasury. However, due to a lack of professional management, the treasury's assets have generated minimal investment yield and have been subject to irresponsible spending. As a professional crypto asset manager, I propose a plan to responsibly and transparently invest and grow Nouns' assets. This initiative also aligns with The Nouns Break-even Movement.

By way of introduction, I'm previously an investor on Wall Street working for reputed firms including Citadel and Goldman Sachs. I've been running my own crypto hedge fund (long/short) since the end of 2023. We delivered low-correlation strong returns. Due to compliance reasons, we're not allowed to disclose detailed fund information here (no public solicitation), but below is our fund performance since inception compared to CIG benchmarks.

Here’s a snapchat of the PnL in our Binance futures account (just one of the many accounts we trade):

I think it's reasonable to allocate Nouns treasury to two pockets: 75% low-risk yield-driven pocket vs 25% medium-risk growth-driven pocket.

<ins>Yield-driven pocket:</ins>

• Investment unit: stablecoins and ETH.
• Return source: yield farming, including lending, staking, passive market making, airdrop farming.
• Target return: 4-6% minimum, can be higher depending on market conditions.
• Risk: minimum drawdown (<0.25%); diversify to minimize counterparty/smart contract risk.
• Liquidity: instant.
• Manager: yield farming opportunities are naturally dispersive and cross-chain so we didn’t find a good vault-like infrastructure for this. It’d be most convenient that I can manage this part of assets in a multisig with NounsDAO. Otherwise, because the strategy won’t be trading very frequently, I can directly propose investment recommendations here as Nouns props.

For now, I identified mETH, stETH PT on Pendle, wstETH-WETH pool on Aura Finance, and Instadapp Lite ETH as higher yield alternatives with minimum risk to holding just stETH and rETH. I suggest allocation about 20% of current stETH/rETH holdings to these opportunities first. Given the complexity of facilitating such transactions, I'll draft another separare propsal for this.

<ins>Growth-driven pocket: </ins>

• Investment unit: stablecoins.
• Return source: market timing and alpha selection.
• Target return: ~30%, depending on market conditions.
• Risk: 5% max drawdown target.
• Liquidity: instant.
• Manager: I created a vault (https://app.hyperliquid.xyz/vaults/0x7c4844c37b9d382f7f8c72c23af64e6050804e85) on Hyperliquid and deposited $1mn into it. The vault will mirror our main fund strategy. We’ll be trading mostly major coin perps (BTC, ETH, SOL, XRP, etc.) in Hyperliquid with our directional view. Treasury can allocate a small amount to the vault first and increase allocation gradually as the strategy gains more tracking record.

For now, I propose allocation of 200,000 USDC, as first step, to my managed Hyperliquid vault. Fund will be transferred from treasury to a dedicated account for Nouns, after which the fund will be bridged to Hyperliquid and deposited into the vault. The assets will always stay on-chain in this dedicated account and be visible under supervision of every one in the community.

Nouns have accumulated a significant amount of assets in its treasury. However, due to a lack of professional management, the treasury's assets have generated minimal investment yield and have been subject to irresponsible spending. As a professional crypto asset manager, I propose a plan to responsibly and transparently invest and grow Nouns' assets. This initiative also aligns with The Nouns Break-even Movement.

By way of introduction, I'm previously an investor on Wall Street working for reputed firms including Citadel and Goldman Sachs. I've been running my own crypto hedge fund (long/short) since the end of 2023. We delivered low-correlation strong returns. Due to compliance reasons, we're not allowed to disclose detailed fund information here (no public solicitation), but below is our fund performance since inception compared to CIG benchmarks.

Here’s a snapchat of the PnL in our Binance futures account (just one of the many accounts we trade):

I think it's reasonable to allocate Nouns treasury to two pockets: 75% low-risk yield-driven pocket vs 25% medium-risk growth-driven pocket.

<ins>Yield-driven pocket:</ins>

• Investment unit: stablecoins and ETH.
• Return source: yield farming, including lending, staking, passive market making, airdrop farming.
• Target return: 4-6% minimum, can be higher depending on market conditions.
• Risk: minimum drawdown (<0.25%); diversify to minimize counterparty/smart contract risk.
• Liquidity: instant.
• Manager: yield farming opportunities are naturally dispersive and cross-chain so we didn’t find a good vault-like infrastructure for this. It’d be most convenient that I can manage this part of assets in a multisig with NounsDAO. Otherwise, because the strategy won’t be trading very frequently, I can directly propose investment recommendations here as Nouns props.

For now, I identified mETH, stETH PT on Pendle, wstETH-WETH pool on Aura Finance, and Instadapp Lite ETH as higher yield alternatives with minimum risk to holding just stETH and rETH. I suggest allocation about 20% of current stETH/rETH holdings to these opportunities first. Given the complexity of facilitating such transactions, I'll draft another separare propsal for this.

<ins>Growth-driven pocket: </ins>

• Investment unit: stablecoins.
• Return source: market timing and alpha selection.
• Target return: ~30%, depending on market conditions.
• Risk: 5% max drawdown target.
• Liquidity: instant.
• Manager: I created a vault (https://app.hyperliquid.xyz/vaults/0x7c4844c37b9d382f7f8c72c23af64e6050804e85) on Hyperliquid and deposited $1mn into it. The vault will mirror our main fund strategy. We’ll be trading mostly major coin perps (BTC, ETH, SOL, XRP, etc.) in Hyperliquid with our directional view. Treasury can allocate a small amount to the vault first and increase allocation gradually as the strategy gains more tracking record.

For now, I propose allocation of 200,000 USDC, as first step, to my managed Hyperliquid vault. Fund will be transferred from treasury to a dedicated account for Nouns, after which the fund will be bridged to Hyperliquid and deposited into the vault. The assets will always stay on-chain in this dedicated account and be visible under supervision of every one in the community.