Reserve = Capital that we plan not to use during the next three months.
Probably anyone who has been in crypto currencies for a long time will agree with me that volatility can be a stressful affair. It doesn’t matter if the market goes up or down sharply, both are very stressful and will consume a lot of human time that could be used productively.
I see no reason to take unnecessary risks and speculate on the growth of ETH, BTC or whatever. Each individual shareholder is free to carry out these speculations himself, regardless of the DxDAO.
The best defense against volatility is diversification. Unfortunately, we do not yet have direct access to global financial markets, so we cannot use traditional methods based on stocks and bonds.
So far, we only have access to stablecoins, tokens, tokenized gold, tokenized BTC, options, perpetual contracts and synthetic assets.
To make it easier, I am currently a fan of reserves in ETH only, stablecoins and possibly gold.
50% stablecoins - a mix of centralized / decentralized
1/3 stablecoins - mix of centralized / decentralized
I don’t know where dxdao will move in the coming months and years, but I know for sure that diversification is always the right direction.