Gn, thanks for the feedback !
Can you clarify what you mean by “Sub fed funds” please ?
Target incentives in this post include bribed votes, but not the Aave DAO voting power owned once locked, which could increase the estimated yield as mentioned in the proposal.
This proposal doesn’t either take into account the support (free votes) being received by other communities for a few more weeks, as it’s expected to partially fade away in the coming weeks.
Moreover, the Balancer incentives should start when the GHO peg situation is better, which will then bootstrap the new pools during this trial. The long term goal is to add GHO LPs in the Safety Module, which will unlock a higher incentive budget (already spent currently as it’s the cover budget).
Just shared an update of the SM proposal status here.
Thanks for sharing and excited to see the vault live !
I thought it would go live later so we were thinking about potentially including it in an upcoming strategy update.
Just dived into the Turbo GHO post, sent a few questions in our chat to better understand the underlying strategy & booked a call to discuss possibilities unlocked with this vault, let’s explore what can be done. This vault could probably be considered for POL strategies that will be proposed later imo.
Yes Gyroscope has been considered, but there are a few reasons of why we didn’t proposed it for now:
- As mentioned above, the goal is to propose to implement at least one of these Balancer pools the SM upgrade once these are balanced & GHO peg situation is better.
In the SM, stableswap liquidity is more efficient than concentrated liquidity for the simple reason that efficiency is less important than the amount of TVL, which is also the protocol cover.
Meaning: In case of a shortfall event, it’s more efficient for the SM to have 100M TVL of “inefficient liquidity” rather than 20M concentrated, even if both generate the same volume, as the bigger TVL will cover more damages.
(Doesn’t mean that we’ll never look into adding CL in the SM, but it’s not as easy to manage as classic LPs so probably better to start simple and offer both choices in the future to avoid reducing the amount of depositors).
- One of the goals of adding Maverick & Univ3 with Bunni & Liquis in addition to Balancer LPs is to diversify GHO liquidity across several exchanges.
Most of the GHO liquidity was on Balancer boosted pools which got an issue, leading to an important reduction of the GHO liquidity available on the market. Moreover, there were requests to diversify exchanges in previous proposals focused on Balancer, so we included others in terms of concentrated liquidity.
Note that the Curve strategy is being worked on and will be shared on another proposal. How the DAO will manage its CRV holdings to sustain Curve pools can impact the strategy & associated spending.
- For Maverick, the rewards are distributed in liquidity mining as the tokenomics are not fully live yet, so voting power is not needed atm. Once MAV emissions are live, a grant request, a token swap and/or a MAV acquisition could also be explored, otherwise we’ll be able to bribe as well.
For Bunni, it’s true that the DAO doesn’t hold veLIT but as mentioned in the proposal, allocating part of the bribe budget for UniV3 on vlLIQ (controlling veLIT) over this trial will enable the Aave DAO to be included in Liquis launch partner program & earn 0,2% of the LIQ supply. While the tokens are vested, the full voting power will be available from the start, enabling voting on GHO gauges.
It doesn’t mean we won’t look into Gyroscope in the future, especially if Curve pools can be supported there as well, but this wasn’t prioritized for this proposal.
Lmk if you have other questions !
Thanks for the feedback ! Not sure to understand what you mean, can you clarify please ?