The idea behind this post is to start community discussion about these topics and simply that! I’m compiling information I’ve seen on chats and discussions focused on proposal recommendations that can potentially help answer:
- What can we propose to the DAO?
- How we can GROW THE ECOSYSTEM and multiply the value that we provide as a protocol?
- How we can acquire more locked liquidity with new products and new updates indirectly and directly?
As of NOW our ecosystem looks something like:
|CORE||Farm Reward, Lending|
|coreDAO||Farm APY, Lending, Governance|
|DELTA||Farm Reward, Staking|
|CORE Vault||Farms CORE||Stake coreDAO to farm CORE|
|Lending||Trade assets for stable capital||Liquidation based on interest as opposed to collateral price|
|Arbitrage||Advantage in Market Changes||Needs update|
|Router||Minted LPs||Needs update|
|DFV||Stable Yield, Delta Farm, ETH Distributor||Multifaceted Vault|
These two updates have been talked about extensively that will help grow the ecosystem:
- Options platform for DELTA/CORE
- coreDEX: AMM-style Decentralized Exchange
This is the real priority for the development and also the long term vision of the project.
Building these is simpler said than done and it takes a lot of different parts and systems interacting with one another.
Besides these two obvious proposals and directions there are others that have been discussed as possibilities for future direction of the project.
I will mention them here regardless of development complexity and viability for the sake of discussion. Some of these can also work synergistically with others.
Any project mentioned here is not an endorsement.
Road to 1 Billion in Locked Liquidity.
Vaults that create & maximize yield through various strategies and rewards.
These strategies can include:
- Various forms of collateral
- Using CORE, coreDAO, DELTA or rLP
- Stablecoins USDC, RAI , FRAX, SAI, UST, LUSD
- Cryptocurrencies ETH, BTC, LTC, any L2s & ETH compatible coins CRV, MATIC
- Automatic Compounding Rewards
- Rebalancing & Shifting Capital
- Increase loan value
- This can be achieved indirectly by increasing the Floor Price of CORE and coreDAO. Increasing floor price can be directly achieved using a combination of staking, vaults, arbitrage, FoT, incentives for minting coreDAO and other.
- This could have an effect on interest payments because people will want to pay their loans so that they have their collateral back so that they can loan a higher amount. Another reason to repay your loans and pay the interest and opting to not burn the collateral.
- Change % interest on existing cLend Modules
- DAO could vote on the % interest as its been discussed before.
- Different modules with varying APY and interest rates
- Self-paying loans with high interest
- Users can opt to pay high interest in the form of farm APY in exchange for a self-paying loan. An alternative to zero-interest loans. Edit: A protocol that does this is Alchemix.fi using vaults in curve
- Different Forms of Collateral
- As of now you can only trade internal assets for a loan. Future implementations of the cLend module could potentially take ETH and BTC to loan you DAI for example.
- Different token to be loaned
- Instead of only DAI to be available to be loaned a different currency can be used like BTC . This will be very complex for Floor Price I think.
As of now the Delta token is vested over a period of time. One possibility is to be able to trade the unmatured vesting contract without forfeiting the DELTA. Not sure about the implications and viability.
- Staking Core and coreDAO for Delta
- as of now you can only stake DELTA and rLP in the DFV in order to receive rewards in ETH and DELTA. This could be expanded to CORE, for example, at half the rate in order to increase the utility of CORE. This has been discussed as part of the merge of DELTA CORE.
This involves expanding to other stablecoins and forex products.
Zapper - minted more ETH/CORE LPs and this is no longer in use. This tool can be expanded to incentivize the minting of new coreDAO. While this dilutes existing coreDAO holders this could also incentivize fresh liquidity.
This tool can be repurposed to increase floor price and increase farming APY.
The Fee of Transfer is also a potential product that has been discussed for proposal recommendations. Besides aggressive and conservative change to the FoT % there are two other possible changes: static & dynamic.
Static - a specific change, ex. from 1% to 5%
Dynamic - “protects” from volatility or market changes.
- Automatic trigger like a 50% increase/decrease in price, proximity to floor price, or another market conditions.
- Low FoT incentivizes trading, whereas high FoT incentivizes holding.
- Distributor - A percentage of the DELTA sold automatically for ETH is distributed to stakers in the DFV. The CORE Vault could have a similar distributor contract from the FoT that converts CORE into something like renBTC and distributes to all staked coreDAO. This could also work as a vault strategy.
- Stake coreDAO LPs in the CORE Vault - incentivizes liquidity.
- More LP pools to trade CORE with
Let’s discuss these possibilities as well let me know in the comments what I missed, what you think can be done, what you like/dont
Jad_the_Chad March 7, 2022, 5:44am #2
The idea of a self paying loan is interesting.
You can do this manually but deltas 1yr DFV vesting contract delays rewards, which means currently you must enter new money to cover the loan then sell your delta in the future for profit.
An automatic loan might work like this:
- Loan DAI from collateral
- Buy rLP.
- Stake into a “repay variation” of the DFV, called RV-DFV.
- When called the RV-DFV exchanges delta for DAI pays out to loan.
Problem is that the system is circular and nothing new is generated, it is also transferring value from delta pool to coreDAO pool. The idea also excludes the vesting period for repaying loans & wraps 3 transactions into 1.
I would go for this because it benefits me. But it doesn’t benefit the system. I played this idea and it boiled down to something that temporarily increased some prices. If the goal is to increase new money, which is then used to generate more money - then the idea needs to be varied to a mutually beneficial system. This graphic attached shows you what I mean & what it could look like.
In the diagram the user agrees to lock there automatically repaid loan for a set period: i.e: 1yr, 2yr or 3yrs.
coreDAO pool gets money from intrest. But also cancelling has an effect on the distributed rewards, by incurring a fee. So coreDAO pool gets extra bigger from cancels.
Delta pool- There isn’t that much delta rewards fully vested right now. Therefore people must buy delta and the Delta pool will get bigger.
User - If user sticks to agreement they will profit like 40%
I think our big brain devs have thought of better things then this and may find it offensive that delta be used like this… as it was designed for options.
iamcapote March 7, 2022, 3:09pm #4
if you are interested in self-repaying loans you can take a look at alchemix.fi which uses curve vaults to repay the loan automatically.
this is one of those things that needs a couple of different parts to work and i envision it as a hybrid between a vault and a loan. I imagine it something like: you deposit coreDAO and part of the farm income goes to repaying the loan, or with core you deposit core and it uses that core to get yield in order to repay the loan.