TLDR: Propose to create new PickleJars to farm BOND (1400% APY Pool2, 50% APY Pool1)
First off, I promise this post will be shorter than the last one
I think we have an opportunity here to capture some fresh TVL and some juicy APYs.
For those unfamiliar, Barnbridge launched their liquidity mining program 11 days ago and it’s been a resounding success so far ($520M TVL at the time of writing)
Their basic premise is a bridge between traditional finance and DeFi through the use of ETH-based derivatives. More details here.
The project is audited and VC backed with a public dev team, so security concerns are minimal.
BB currently has 2 active liquidity pools:
Pool1 is the stablecoin pool and runs for 25 weeks and earns 32K BOND/week.
There’s currently $500M in pool 1 and BOND is trading at $150 for a weekly yield of $4.8M (1%) = 50% APY
Pool1 accepts USDC/DAI/sUSD under a Proof of Capital structure. There’s no IL involved here and it doesn’t matter which coin you deposit.
Pool2 USDC/BOND is their power pool and it runs for 100 weeks, earning 20K BOND/week (flat emissions, no weekly reductions)
There’s currently $11M in pool 2 and with BOND trading at $150, we get a weekly yield of $3M (27%) = 1400% APY
Pool2 is a Uniswap USDC/BOND pool
Sound good so far? Here’s the catch -> BOND rewards are paid out weekly and you get nothing if you withdraw before the end of the week (epoch).
Here’s my proposal:
Step 1: Create a PickleJar to farm Pool1 and direct some PICKLE emissions to it as an incentive (nothing major, 1-2%). This should attract some stablecoin TVL as the combined APY will be very attractive.
Step 2: At the end of each epoch, the strategy will claim BOND rewards and do ONE of the following:
A. Sell half the BOND for USDC and supply liquidity to Pool2 @ 1400 APY (no risk to initial capital)
B. Do NOT sell any BOND, take an equivalent amount of USDC from invested capital, and supply liquidity to Pool2 (Higher returns but with a small risk to initial capital, 1% a week, capped at say, 5%)
Step 3: Claim the BOND rewards from pool2 weekly, and again do either A or B
I’ve been following BB since inception, and nobody expected it to explode like it has. (pool1 had $10M 10 days ago). There are a lot of small farmers that are unhappy that it’s become a whales’ game. (too few BOND to go around) .While these farmers would like to supply their farmed BOND to pool2, it’s currently uneconomical with gas prices and their low allocations.
This proposal would automate that for them (basically giving LT BOND farmers a fire-and-forget solution)
I believe that this sort of farming with a twist can attract fresh TVL to Pickle.
Once they are here…free swaps make it likely that they will stay, as we have attractive options for whatever crypto they wish to park.
- Single-asset stablecoin solution (users can deposit USDC/DAI/sUSD directly)
- Minimal PICKLE emissions required
- BB is currently the hot potato…doing this would give us great exposure
- Huge TVL…we only need a small % to move over to make this a successful endeavour.
- Long, flat emissions schedule…as long as BB keeps the price supported, APYs will last for a long time.
- Audited, VC backed, public dev team
- This would be another industry-first innovation from Pickle
- Gives us a stablecoin option with 50%+ APY while we wait for the Curve boost.
- By doing it this way, we can collaborate with BB as their goal is also to drive Pool1 farmers to Pool2. We won’t be seen as ‘hostile dumpers’
- Weekly rewards
- Might cannibalize TVL from our 3pool and DAI jars. However, if this happens, we might need to buy less CRV OR we can use the excess CRV to boost the renBTC pool.
- Added complexity, not sure how hard it would be from a dev standpoint.
Thanks for reading! Please share your thoughts.
EDIT: After consulting with the team, I learned that implementation of the above solution may be too complicated and might take some time.
So, we can start with a basic PickleJar for Pool1
Accept single-asset deposits USDC/DAI/sUSD and sell the weekly BOND rewards for 50% APY + any PICKLE emissions
If successful, we can work towards implementing the more complex strategy outlined above.
Putting up a poll here to gauge community interest.
- Issue Licence To Kill
- Do nothing