> For the complete documentation index, see [llms.txt](https://austin-kuyrkendall.gitbook.io/griffin-investments-dao/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://austin-kuyrkendall.gitbook.io/griffin-investments-dao/information/investment-strategy.md).

# Investment Strategy

### Overview

**Ultimately, investments will be directed by the DAO via member elections.**

We anticipate that a vast majority of the DAO's capital will be used to either **provide liquidity or lend on decentralized exchanges** such as Orca, Raydium, and Tulip.

We expect to be deploying capital into **innovative projects that have long-term outlooks**, and whos' tokens are expected to increase in value overtime.

It's vital that the DAO's members take **risks of liquidity provision**, such as impermanent loss, into account before investing.

### Impermanent Loss

It's important to **make sure liquidity pool APRs are sufficiently incentivizing liquidity provision** to account for impermeant loss risk. If a token's price is expected to make a very large move in a short amount of time, **it may be a better idea to HODL or lend the token rather than providing pool liquidity.**

![The possible negative effect of impermeant loss on liquidity providers.](https://1855544497-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FeagJ4x5XbG7R1BUL7948%2Fuploads%2F9mnoTYtadsCqhfMSUi5I%2Fimage.png?alt=media\&token=59393551-d93e-4ea1-91e7-217256e4e96a)