It would be cool if there was a way that if someone, in a protected pool, staked for at least 100 days to have full impermanent loss coverage, could then restake the FEES earned to potentially earn more than their initial stake and not have to incur an additional 100 day time frame. It seems like it would help Bancor create an additional sticky measure for long term pool providers to be incentivized to hold or reach.
I think the idea behind requiring 100 days to get full impermanent loss protection from our end is to allow us to recoup the cost of IL via pool fees from swaps. If we let folks that already have full 100% protection on existing position, start at 100% for any new positions (e.g. restaking their fees as you suggest) then this would defeat the purpose. They would be able to collect full IL protection before 100 days if they decide to remove their liquidity before it gives us a chance to recoup this cost. In the long term, I don’t see this strategy working towards our advantage.
I apologize if I don’t know all the inherent risks and if my suggestion didn’t take that into account but I was only speaking for the portion of fees earned and not if they wanted to stake new or additional assets. My suggestion would only be in regards to the fees earned on their initial stake.
If that’s not a good suggestion, then maybe offer a way that the fees earned could be restaked after they have reached full impermanent loss protection. At that point the fees earned from Impermanent loss are already accounting for that risk in the first place, right?
Full disclosure, I have an asset that I’ve been staking for 119 days and I don’t want to have to withdraw my initial stake and fees earned just to restake and have the entirety (initial stake + fees) now subject to another 100 days. That seems a bit excessive given the fact that the fees earned are already taken into account from the impermanent loss coverage to begin with no?
Or maybe offer a way to restake the fees and only have the portion of staked fees have to wait the 100 days for impermanent loss protection.
Or maybe offer a way to restake the fees and only have the portion of staked fees have to wait the 100 days for impermanent loss protection
Yes, I think this would be the ideal solution to what you are describing. Unfortunately, I am not sure about the complexities of implementing such a feature but I could see why this would be useful for folk that would like to compound their fees at some regular interval (monthly etc…).
Bancor lists APR instead of APY so that leads me to believe that this is in actuality already happening since APR is a compounding version of APY essentially.
I didn’t even notice that. You are probably right and it might already be happening.
There is incentive to restake, it is called collecting your vBNT on the fees earned. I think the only thing that needs to happen is a button to execute claiming your vBNT, vice withdrawing and restaking.
This. Taking part in governance should require a little skin in the game, so requiring that you start ILP over from scratch in order to get more governance power I think is a better solution (and notably, not how it works at the moment, since you actually can restake rewards without resetting ILP). Participation in governance means you take on extra risk in exchange for voting power within the DAO, and in my mind that’s a good thing, it emphasizes commitment to the good of the DAO, and not necessarily that of your wallet (although the two tend go hand-in-hand, it seems).