BNT yield throttling is the obvious choice from the three options. I’ve got some questions and observations:
- Capital efficiency: How would be the off curve funds used? Can they be used? Are they just a idle reserve?
- LPs no longer compound their earnings if their earnings are stored off curve, this is negative IMO. I like the idea that I don’t have to do anythning to grow my investments, with cancelling the coumpounding my fees won’t earn fees on fees. Aren’t the withdrawals more expensive because the funds come from two sources (+ the ILP), pool and the off curve vault
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Can the ILP reserve (ILPR) and the LP revenue split be changed on a per pool basis? (20% goes to off curve ILPR; 80% goes to LPs - can be changed for each pool?)
Explanation:- It is certain that there will be ILPR:IL deviations between each pool. Some pools could have 10:1 (means surplus) ratio and some 2:3 (namely the large pools) and the system as whole would be still in a deficit: 48 of pools in surplus, 3 pools in deficit → whole system in deficit → network fee remains high
- In pools with large surplus the (ILPR fee):(LP fee) split should be in favour of the LPs [10:1 ILPR ratio on a small pool could be quickly depleted by huge deposits and rapid price movements]
- OG LPs pay the most, they build up reserves, which the future depositors enjoy
- Would be the LP compensation at withdrawal from a pool in surplus be 100% and in pools with deficit <100%?
- How dificult would it be to implement in the future?
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Could the network fee be used to fill up the individual ILPRs? The collected network fee would be swapped into a TKN and deposited into a ILPR off the curve to decrease the deficit.
- This would mitigate the per pool ILPR divergence; help to fill up the ILPR of the pools that are in more deficit quicker and reduce network fee afterwards.
- Somewhat alleviates the LPs burden of filling up the ILPR
- It would decrease the BNT price and possibly increase IL; bad if the IL is caused by BNT price fall, good if caused by BNT price increase [this lead me to this idea]
- How dificult would it be to implement in the future?