Thank you for putting up this proposal. I have some ideas and comments on this thread that I would like to share with the community.
First these three things
c. The caller receives a small incentive to call the function, proposed to be 0.2% of the total amount being transferred.
d. The caller receives a small incentive to call the function, proposed to be 0.2% of the USDC received by the contract following a successful swap.
c. The caller receives a small incentive to call the function, proposed to be 0.2% of the target USDC received by the contract following a successful swap.
I had a spreadsheet that I exported some weeks ago from analytics and it has a dollar value for the tokens in surplus which I have put at the bottom. At this point it is outdated and there are also certain tokens without a corresponding dollar amount as well. I am going to use it for my example but I also think that the team should provide a recent dollar value snapshot for tokens in surplus.
Going by this spreadsheet, there is about $5 million in surplus if all these tokens are sold. I am going to assume that if we sell these tokens that we would get something around 4 million dollars due to slippage and other factors. If we follow the three steps for swapping the tokens to a stablecoin then the fees that the Bancor DAO has to pay is .6% in total. The .6% of 4 million comes out to be $24,000 if these steps are taken.
I can NOT in any good faith support a proposal that is looking to extract value from the Bancor DAO in light of the current situation that we are in. There is already a precedent for selling surplus tokens from v3 that this DAO has voted for in the past
and for which I have already described in detail the set of steps that was taken
without incurring ANY of the costs that is being proposed here. If this means that we as DAO or I have to put up individual proposals to sell of the surplus for each token then so be it. I estimate that it will take 1 hour of my time to copy and paste 50 proposals to sell off the token surplus in a similar manner.
How did I get 50 proposals?
I count a total of 131 pools in v3 which means a maximum of 131 swap transactions that need to be made if ALL pools are in surplus. There is only about 50 pools in surplus right now that require a token swap. I estimate that it takes 10 minutes of developers time to do each swap based on the TX data from the renBTC proposal. For the initial batch of pools once the DAO is done voting to disable them, I estimate that it will take 1 work day to perform these operations and SAVE the DAO $24,000 in the process
There is no reason for the Bancor DAO to have jaredfromsubway syphon $24,000 knowing that this can be done and HAS been done in the past after the DAO has voted for this operation to be performed.
I understand that this is a manual process but there is a clearly defined maximum number of times that this has to be performed which is equal to the number of pools in v3. After this initial batch I don’t think we will have multiple token pools going into surplus at once so it will most likely be a small trickle of pools here and there that we will need to perform the same set of steps to convert. Yes this is a repetitive task for a developer to do but I think as a community we are owed this much. Do NOT ask the DAO to give up $24,000 in value for something that is not needed.
A benefit if we follow the renBTC example for swapping surplus token is that we are not going to waste developers time to write public functions to perform one time operations that will syphon value from the DAO.
Second Stable Coin Strategy
Vote FOR to support the creation of a protocol-owned USDC/USDT strategy on Carbon, which emulates a 1 basis point concentrated liquidity pool, via the setting detailed above.
My biggest problem with this proposal is that it calls to sell ALL of the surplus for a stablecoin to create a stablecoin strategy. This in my opinion would be the biggest blunder that we as a DAO will make if we decide to move forward with a stablecoin strategy. I am not bullish on ANY fiat backed stablecoin less so USD and for obvious reasons. I am more bullish on Ethereum and the value that this blockchain provides as we and countless of other protocols, projects, investors, companies, individuals have decided to store their assets here.
For this reason, I can’t support any proposals that is requesting to sell off the surplus for a stablecoin. I will 100% support a proposal that will sell the surplus for ETH and to have a strategy created around ETH and a liquid staking derivative or between two liquid staking derivates for which there are plenty to choose including lido, rocketpool, frax, coinbase, ankr, stakewise, and the countless of others LSDs. All of these at a minimum yield 5%-10% from Ethereum emissions which means that unwrapping back to ETH tokens in year would result in 5-10% more ETH than initial quantity. A carbon strategy around ETH will be netting the Carbon protocol .2% any time there is a trade in this strategy that goes directly to the protocol and to burn BNT.
This does not take into account any upside that Ethereum has when the market recovers as it could easily 2x-3x and even surpass its previous all time high.
Based on the most enthusiastic estimates for a protocol owned stablecoin strategy which is 100% of UNI volume goes through Carbon this strategy will still NOT yield in a year the value of holding ETH and it doubling in price.
To recap my ideas:
- Sell the surplus to ETH using a similar set of actions that were taken in the renBTC proposal and save the DAO and estimated $24,000 in the process
- Create an ETH strategy in Carbon around an ETH/ETH_LSD or an ETH_LSD/LSD
| Symbol | Surplus/Deficit | Surplus/Deficit (TKN) | Surplus/Deficit |
|---|---|---|---|
| DRC | $0.00 | 16,348,844 | 1634884400.00% |
| FODL | $0.00 | 10,174,547 | 27498777.03% |
| DAO | $0.00 | 3,375 | 5532887.17% |
| AUC | $11,814.70 | 6,338,693 | 2314129.96% |
| DDX | $0.00 | 6,116 | 1568203.17% |
| KTN | $11,932.33 | 37,332 | 1146435.51% |
| SHEESHA | $4,966.44 | 789 | 961819.66% |
| APW | $25,326.66 | 73,701 | 825906.01% |
| IDLE | $8,575.84 | 32,069 | 642844.61% |
| HEGIC | $20,414.18 | 1,640,917 | 358118.13% |
| MTA | $0.00 | 247,768 | 49164.89% |
| NDX | $19,879.32 | 1,101,310 | 24621.74% |
| ARMOR | $17,990.89 | 3,006,623 | 17941.93% |
| OMG | $0.00 | 49,445 | 9725.31% |
| COMP | $145,653.19 | 3,532 | 7330.14% |
| YFI | $587,212.72 | 72 | 6978.28% |
| ALPHA | $336,664.58 | 2,371,897 | 6974.07% |
| ROOK | $485,724.03 | 9,388 | 5688.14% |
| PHTR | $21,362.60 | 789,706 | 5173.99% |
| ERSDL | $69,534.61 | 22,333,712 | 3589.29% |
| OPIUM | $15,402.14 | 111,943 | 3101.45% |
| MPH | $133,790.79 | 61,224 | 3081.31% |
| UMA | $13,672.43 | 5,872 | 2878.65% |
| OCEAN | $1,046,413.60 | 2,817,380 | 2355.00% |
| EDEN | $277,703.24 | 4,446,458 | 1488.05% |
| GRT | $238,730.08 | 1,752,122 | 1391.49% |
| SNX | $747,267.02 | 304,481 | 870.97% |
| EWTB | $0.00 | 3,014 | 755.97% |
| BMI | $0.00 | 120,225 | 722.92% |
| LQTY | $0.00 | 8,932 | 681.98% |
| ARCONA | $145,181.80 | 2,041,016 | 599.31% |
| RARI | $5,806.69 | 3,186 | 374.61% |
| SATA | $4,950.44 | 365,245 | 361.65% |
| RNB | $11,377.78 | 717,538 | 226.63% |
| FARM | $0.00 | 2 | 209.73% |
| REN | $347,885.63 | 4,142,386 | 171.15% |
| LPL | $15,747.63 | 76,382 | 134.72% |
| DAPP | $60,357.84 | 86,303,656 | 104.74% |
| GTC | $0.00 | 170 | 103.81% |
| ACRE | $13,106.57 | 14,664,926 | 102.16% |
| MFG | $44,165.55 | 25,609,151 | 63.28% |
| INDEX | $1,851.52 | 1,145 | 63.24% |
| COT | $0.00 | 13,871,939 | 34.43% |
| SHIBGF | $2,047.79 | 3,887,647,095,665 | 34.19% |
| PERP | $0.00 | 86 | 30.68% |
| XSUSHI | $1,426.45 | 1,080 | 21.46% |
| CROWN | $22,358.38 | 1,955,962 | 7.64% |
| 1INCH | $0.00 | 28 | 1.38% |
| BORING | $1,157.09 | 346,943 | 0.79% |
| VITA | $0.00 | 0 | 0.50% |
| 1ONE | $0.00 | 0 | 0.00% |
| ALEPH | $0.00 | 17,645 | 0.00% |
| BDIGG | $0.00 | 25 | 0.00% |
| CRV | $0.00 | 0 | 0.00% |
| CTSI | $0.00 | 0 | 0.00% |
| DUSK | $0.00 | 0 | 0.00% |
| DYDX | $0.00 | 0 | 0.00% |
| FOX | $0.00 | 0 | 0.00% |
| FRM | $0.00 | 830 | 0.00% |
| FXS | $0.00 | 1 | 0.00% |
| JRT | $0.00 | 1,078,785 | 0.00% |
| LYRA | $0.00 | 3,731 | 0.00% |
| MFI | $0.00 | 150,954 | 0.00% |
| OPTHALES | $0.00 | 1,086 | 0.00% |
| PLR | $0.00 | 47,298 | 0.00% |
| SAO | $0.00 | 503,451 | 0.00% |
| SFI | $0.00 | 10 | 0.00% |
| SRM | $0.00 | 2,343 | 0.00% |
| STAKE | $0.00 | 4,388 | 0.00% |
| VISION | $0.00 | 3,884 | 0.00% |
| VLX | $0.00 | 0 | 0.00% |
| $4,917,452.55 |