I’d like to see more TVL in our high APY farms.
I think one way to achieve that is to tap into audience that is either:
- unfamiliar with defi
- afraid of trading on dexes
- can’t afford ETH gas (approve, deposit, stake, approve, deposit, stake…)
- not keen to pick winner coins himself/herself
I propose launching simultaneous 3 indices on ETH, Arbi and Poly:
These indices would contain a proportion of pTokens in a Balancer pool:
Pools and LBPs - Balancer :
Investment Pools - An LBP-like pool with the same rights to disable trading and change weights, but which allows public LPs. It also supports management fees (as a percentage of swap fees), and higher token counts.
The pool could start with 4 pTokens. Trading disabled.
The team could commit to make 2 week long snapshot votes, where owners of the LBP token could vote on which coin they want to increase exposure to and which to decrease exposure to.
There would always be 2 votes:
Which of the pTokens should we dump 5%?
Which pToken to buy with proceeds? (some new pools could be available)
Each option could have - do nothing, if the majority choice is do nothing on either buy or sell, you don’t rebalance at all - preferable as trading is expensive and takes time.
Pretty easy to execute by the team, you unwrap, dump, buy, wrap and deposit into the Balancer pool.
Hard limits - minimum 4 assets, max 8 assets, Max exposure to 1 pToken 40%, min exposure 10% (otherwise dump all)
Numbers are arbitrary, could and probably should be changed.
- an index with reasonable results, the 100%+ APYs should make it good
- insane memery mocking DPI and other garbage indices
- gamification, ALCX crowd could fight SPELL frogs for increasing exposure
- snapshot voting costs 0 and would keep investors engaged
- hands off approach with investors deciding on allocation
- only high APY assets could be whitelisted, in that case no need for a fee
- may not take off, pickle treasury could be the first investor, small pickle rewards could be considered to bootstrap if really necessary
- low TVL on ETH could make it too expensive to handle, Arbi and Poly pilots could be the first step
- if market turns, it will generate losses and look embarassing against USD
- every 2 weeks team will have to rebalance
- small potential for malicious takeover, limited with max 40% exposure to 1 pToken
- trading disabled, it would be illiquid anyway, making it tradable would generate v little fees and expose to one rugged asset rugging the entire index.