Proposal: profit maximalization

[Raaaababa]

I’ve made another post outlining what our fee model change enables, I’d recommend you read that first. (Change of Fee model, change of mindset)

Hello my fellow Pickles,

Take a look at the table I made this morning.

It clearly shows that not all assets are equally profitable for us, you could even say that there is a huge difference. For example any dollar in uni-DAI makes us 5,3 times more money than if they were in renBTCCRV.

My proposal is very simple.

Cut the pickle rewards for the low performing strategies (in the terms of APY) by 50%-100% and award them to our most profitable.

Pickle rewards are an incentive to attract LP’s to our platform. Why not make sure that we attract the ones that are the most benefitable to the protocol?

Some might say “but the UNI pools will soon end”

Yes true, but not tomorrow…we still have 14 more days to enjoy the high rewards it provides!

Now we don’t have a withdrawal fee as barrier, let’s use the opportunistic nature of crypto capital in our advantage.

DAI, USDC, and USDT are currently the most profitable strats, let’s make sure we get a big piece of them while the fun lasts! In two weeks we can reevaluate and switch the rewards to the strategies that our the most profitable at that time.

The success of Pickle will not only depend on good strategies, but also on being able to use the Pickle rewards to our advantage.

Let me know what you think, looking forward to the discussion!

What do you think?

• Good idea!
• Interesting idea, needs some tweaking
• Bad idea!

[Tomato_Juxx]

Interesting idea…

@Raaaababa

Take a look at the table I made this morning.

It clearly shows that not all assets are equally profitable for us, you could even say that there is a huge difference. For example any dollar in uni-DAI makes us 5,3 times more money than if they were in renBTCCRV.

Why don’t you show the other Jars ? (SCRV-0a and DAI 0.88a)
Could be interesting to compare with one or some competitors, doesn’t it ?

I imagine we are in a good ranking with all of these APY based perfs.
Especially since we benefit from the trust of renowned players like Yearn.

@Raaaababa

My proposal is very simple.

Cut the pickle rewards for the low performing strategies (in the terms of APY) by 50%-100% and award them to our most profitable.

Pickle rewards are an incentive to attract LP’s to our platform. Why not make sure that we attract the ones that are the most benefitable to the protocol?

.Do we not run the risk of “losing” certain existing and potential investors?

I am more in favor of maximizing the set of strategies as long as they are competitive. In this case, this implies a rigorous watch as to the offers of the competition.
But like in your other post, I like the idea of ​​boosting a strategy for a specific time, after deliberation by the community.

@Raaaababa

Now we don’t have a withdrawal fee as barrier, let’s use the opportunistic nature of crypto capital in our advantage.

DAI, USDC, and USDT are currently the most profitable strats, let’s make sure we get a big piece of them while the fun lasts! In two weeks we can reevaluate and switch the rewards to the strategies that our the most profitable at that time.

To go in your direction, concerning the last days of UNI rewards and given your board, won’t you have to “bet everything” on a single asset? DAI here because it pays the most dividends.

But how would investors in other pools take it? maybe pretty bad … even if they can still swap between the jars.

[Thorax86]

Say we were to funnel an additional 9% to the 3 uni stablecoin pools for a 3% boost to each. How much more TVL could we bring into those farms before the APY becomes the same as it is currently? Because increasing TVL will lower the farm apys as pickles are now being distributed among a larger pool.

Do you believe this will bring in more TVL than if we boost the renBTCCRV pool? If we can bring in equal amounts of TVL to the uni pools as we would bring in for the BTC pools then this is obviously the more profitable option. However, what if we are able to bring in more TVL by boosting the renBTCCRV pool with a smaller emission cut/boost?

Finally, where would the extra TVL farming uni come from? Would they be leaving other protocols offering similar apys as ours currently? And how much would these redirected emissions boost apy roughly? Because assuming a 10% apy boost that would only equate to a 0.38% return for the next two weeks. Would that be a large enough boost to drive TVL?

[Raaaababa]

@Thorax86

Say we were to funnel an additional 9% to the 3 uni stablecoin pools for a 3% boost to each. How much more TVL could we bring into those farms before the APY becomes the same as it is currently? Because increasing TVL will lower the farm apys as pickles are now being distributed among a larger pool.

I haven’t run those numbers yet.

@Thorax86

Do you believe this will bring in more TVL than if we boost the renBTCCRV pool? If we can bring in equal amounts of TVL to the uni pools as we would bring in for the BTC pools then this is obviously the more profitable option. However, what if we are able to bring in more TVL by boosting the renBTCCRV pool with a smaller emission cut/boost?

I do. The withdrawal fee is a big hurdle for uni LPs right now. If we remove that + add a little extra on our already very competitive apy’s, I think we could attract a reasonable chuck of TVL. This is of course speculation, but it seems logical. Maybe it wouldn’t make a difference, but this is something we can only try now. Upping the BTC rewards can also be done in 1,5 weeks, I can’t imagine that would make that much difference.

@Thorax86

Finally, where would the extra TVL farming uni come from? Would they be leaving other protocols offering similar apys as ours currently? And how much would these redirected emissions boost apy roughly? Because assuming a 10% apy boost that would only equate to a 0.38% return for the next two weeks. Would that be a large enough boost to drive TVL?

Who knows, I believe we will be a lot more attractive after the fee removal and the boosts. It’s still a hypothesis, but it could be very profitable if it works.

[chimaera]

Would be great to add those other jars into the mix, I agree that this should always be a consideration. If everyone feels that a lower profit solution (ie renBTC) will bring other benefits (marketing, TVL, reputation) then fine, but making such moves without considering the bottom line is short sighted.