As has been discussed on discord recently, the protocol has a reasonably substantial amount of excess reserves that can (and should) be used to create flywheel effects for the protocol. The goal of this thread is to figure out the most cost efficient and effective ways we can deploy that capital in order to provide long term value for the protocol and to get that flywheel spinning.
Off the top of my head, here are some options for how to allocate the excess reserves:
-Buy CRV and max lock it, then boost agEUR pools.
-Buy CVX and lock it, then consistently vote for agEUR pools
-Buy CRV and lock it as sdCRV, then consistently vote for agEUR pools
-Buy BAL and lock it as sdBAL, create an agEUR pool on Balancer and vote for it.
I’m not sure what the most capital efficient choice is, so I welcome anyone to comment who has done that analysis. And of course highlight options I have overlooked.
Another side note is that we could buy CRV and/or CVX and lock it, then collect bribes in the near term until our agEUR/EUROC pools are ready to boost.
One last side note… we don’t have to deploy the entire excess surplus all at once. We could TWAP into these POL positions over time. This might make sense given that I believe we are only about 30%-40% through this bear market, and we may be able to get much better prices for tokens if we wait somewhat. Of course this is a balance between jumping on the EUROC launch opportunity and solidifying our spot as the premier Euro based decentralized stablecoin, and also being mindful of market conditions so we don’t overpay for the POL.
This is a very open ended discussion. Please give all of your ideas for how we can maximize this opportunity, no matter how unique or crazy!