[Idea] wDelta to increase rLP revenue 🌭


iamcapote December 5, 2022, 5:01pm #1

This is an idea to help increase the revenue streams for rLP and increase market opportunities for Delta Token.

This idea only works if you have the farmers interest as the top priority. This is only related to Delta generated on 1-year vesting contracts through rLP and should not be used for 2-week vesting Delta bought on Dexes.

Farmers want to farm & apes want to ape.
Let farmers farm more and let apes ape more.

The overall idea looks like (see images below as well)

You start a withdrawal contract for Delta farmed with rLP. The 1 year vesting contract starts. You then decide to pay a 5% fee to farmers in order to wrap your Delta and be able to sell the vesting contract on the market.

The farming income is increased by charging a farmers fee on the principle in ETH and sending it to the DFV for redistribution. This fee is an additional 5% on the Delta that is being wrapped, for example every wrapped transaction would look like: 100 Delta + 5% Fee in ETH + Transaction Gas. This additional 5% would be good increase for farmers. If you ONLY want to farm delta you wouldnt want to pay the fee to wrap the token.

On top of that you increase the market speculation on the Delta token itself. This could also be the way to make options for the Delta token itself. Unwrapping the Delta contract should be the same as finalizing the contract and would forfeit any unvested amount.

Since every Delta vesting contract is unique the wNFTs would sell for different prices based on the Delta inside the contract and the amount of time in the contract.

This increases revenue generated on Delta that would otherwise be stuck in Delta vesting contracts.

Also disclaimer this is not an official idea. i still think this idea could use a lot more thinking and work but could be a step towards a good direction.

Figure 1: Current state of Delta simplified.

Figure 2: How the wNFT Delta system could work. simplified.

Figure 3: the whole system

EDIT: Taking the feedback from the community:

  1. this could make a NFT Derivatives Market.

  2. I did not mention royalties from NFT sales. In case an NFT is resold multiple times this fee is rerouted back to the DFV. arguably keep them 5% or less because they paid fee to mint nft. Add another hot dog to the picture :smiley:

  3. the art for the NFT could be generative that changes based on the delta inside of it. i personally think this could be big because the market really likes art and NFTs. and if i had to recommend a design that follows delta’s elegant ui/ux: ferrofluid β†’ is a liquid that is attracted to the poles of a magnet (magnetic fluid). The NFT could be similar to Uni v3 positions but tells you the Delta Farmed and time left and a ferrofluid like abstract animation that grows as more Delta is vested.