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:
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)
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.