Five bullet Friday - issue #98

     Crypto markets shook off the negative sentiment and started surging forward in the last week. Bitcoin has not recovered as much, but most of DeFi protocol tokens started moving up. DeFi protocols produce passive income, therefore, there is a constant demand for these tokens, which our fund focuses on.

1. Today the Wall Street Journal (WSJ) wrote about how junk bond yields are now less than our inflation rate. Central banks have pushed the interest rates to such extremes that even Junk bonds, which are bonds issued by companies with the risk of defaulting on their debt, are yielding 0%. Investors are looking for risk-free return in these bonds, but getting return-free risk.

2. Most people don't realize the extent to which inflation is stealing people's money. Bitcoin is created to solve this fundamental issue. It is hidden from view on the bank statements, but it shows up in rising prices everywhere. I see prices at the restaurants going up steadily. If you bought US treasuries for $1 million, your broker's statement shows $1 million is the value but its purchasing power dropped down to $440,000, which is hidden from view.

3. I added to our Olympus DAO (OHM) position last week. As you can see from our retained earnings spreadsheet, OHM is generating most income for us right now. We currently hold 9468 OHM tokens. Unfortunately our Zapper Portfolio is not showing our OHM position as these are staked at Rari Capital fuse pool.  Our portfolio is underreporting its value by close to $4 million dollars. This amount is reflected correctly on our website, www.rosecityfund.com.

4. Olympus Dao is in the seigniorage business as a primary currency issuer. Currency issuance is historically one of, if not the most lucrative business in the whole world. The sole purpose of Olympus is to accrue value to the network and OHM token, unlike other protocols that need to balance the income between stakers and users of the protocol. It has outperformed every token in the market in the month of June.

5. This week we have collected 8639 SUSD tokens and 2856 SNX tokens as our income. We hold 812,780 tokens of Synthetix as of now. This has produced an annual yield of 25% for this week. I am waiting for the airdrop of the THALES token, which is very lucrative for us.

Crypto Market is poised for a speedy recovery. If any of you have money on the sidelines, this is a good entry point. I personally invested $1.15 million into RCIF in the month of June. I let my actions speak for themselves.

Have a wonderful weekend!

Sam Ikkurty