Reorganization post UniSwap

With Uniswap rewards running out, we have a chance to consolidate and reorganize, to start the “new season” from a position of strength, maximize our maneuverability and, first and foremost, anchor ourselves in the pillars of crypto, to branch out from there.

The way I see it, we want to achieve a couple of things.

  • Consolidate our “assorted stablecoins” approach
  • Leverage our in-house pDAI invention
  • Create and leave room for the next high-yield opportunity.
  • Redistribute rewards in a way that makes none of the remaining farms unattractive
  • MAYBE reduce TVL and/or rewards for PICKLE POWER (but that’s another discussion.)

Without further ado, I present my simplistic take on the matter:


hi-res here

In my view, there are as of next Monday, only three non-PICKLEPOWER strategies that provide some form of yield.

  • Curve Stablecoins (3pool/sUSD/Y)
  • renBTC
  • pDAI

Of these, pDAI is obviously the most attractive.

I am suggesting to consolidate / merge / migrate the TVL of the Jars as outlined.

  • The biggest imperative should be to move all non-WBTC UNI pools to pDAI.
  • The WBTC/ETH migrate to renBTC.
  • The Curve Jars are re-united under one roof (ideally, auto-balancing for the highest yield)
  • PICKLEPOWER remains (obv)

Since the number of Farms is reduced, this gives us a chance to re-engineer the distribution of PICKLE rewards. Reducing the number of PICKLES allocated to PICKLEPOWER will not have an immediate effect, as the absolute return will likely increase. I do propose taking into account a target TVL for PICKLEPOWER, but again, another discussion. I would argue that with only four Farms remaining, 50% of the total issuance should be good enough.

Rearding all Farms with an equal part of the remaining “Base Share” makes all farms at least equally attractive, while leaving a sizeable portion of rewards to distribute according to parameters that will have to be decided. I could well imagine just scaling them with their profitability (for Treasury’s purposes).

This system leaves enough wiggle room for a potential WBTC/ETH or even pUSDC strategy.

DISCLAIMER: The case I am making is not one for drastically changing rewards. Main objective is to reorganize and “clean up” the place so we can move with speed once another viable opportunity pops up. The point is to keep all Farms more profitable than those of the competition, and we can only achieve that by specializing and not spreading ourselves too thin.

DISCLOSURE: I am a BTC maxi at heart. I, personally, believe that a decently subsidized BTC Farm could bring in other TVL for more profitable Jars.

LAZYNESS CLAUSE: I don’t want the text to get too long and even if I try to catch all the corner cases, you will come up with more. So I will leave it at that, and am happy for the idea to be shot down if must be.

Cheerio!

6 Likes

I do love a good visual! Nice write up and I think you are on the right track, unless the team have some new strategies up their sleeves.

Given Curve does actually provide some yield and the gauge weights are dynamic, should we consider the remaining split - in fact add more Curve pools? They also need to be more dynamic in their emission allocation so we can incentivise the hot pool of the week.

pUSDC was discussed on Discord recently and I am hoping to see a new pJAR 0.88 along those lines. I don’t think USDT is quite as attractive but might still work? A solid stable coin yield strategy would be just as attractive as BTC I think.

I think we need simplicity on the front - one “this is all the curve” Jar and one “this is all the curve” Farm.

Future future concept: Accept all Curve USD LP tokens and swap them for the one that provides most yield. I could well imagine some sort of “CRV yield hopping” going on behind the scenes. For now, I’m totally fine with just consolidating in the one that currently has the highest yield.

I’m all for it. In fact it’s more attractive than BTC. I just really like my BTC. :slight_smile:

1 Like

revised the visual