*** Basic Summary/Abstract ***
As Yam price stays in the negative rebase for about one month and there should have an efficient way to push its price out of the negative loop. As of today, Yam treasure has more than $3million, but as the main contributor, Yam itself, its token price stays negative rebase for about one month already. One point I believe is true is that without a strong YAM price there is NO way to build a strong treasure. We have tried mining Sushi and DPI to add value to it, but both of them are just optional selections for yam’s treasure.
So the idea here is to allocate some strategic funds to strong yam’s price when we stay in the negative rebase for more than a month and also in the case the largest yam investors decided to dump its yam today. We should have an efficient way to support yam’s price.
*** Motivation ***
Make Yam Community Consensus United Again!
*** Risks ***
There is a risk that yam’s price will continue to drop to reduce the value of buybacks yam, but the risk is the same with DPI and ETH tokens purchased back from the market. So the risk should be acceptable in a hard situation of the largest investor dumps its yam into the market.
*** Specifications ***
Here is the suggested way to start it:
Allocate 20%-30% of yam treasure as a strategic fund. As of today, it will be $600k ~ 900k value or equal value of yusd.
This fund will be converted into eth or wbtc first, and this fund could continue to grow its value before spending it.
The trigger point for yam strategic fund to get into the market to stabilize yam’s price into a positive rebase. Ether of them will trigger the buyback event:
- yam’s price has 40 negative rebase in the past 45 days.
- yam’s yamsScalingFactor parameter is lower than 3.0
Save yam or do nothing
- Yes, let’s save yam’s value
- No, let price continue dump
Thank you for taking the time to write this.
Before we use funds from the treasury we should consider a few things:
- Does this provide value to the Yam Ecosystem and Treasury?
- Does this value increase or decrease over time?
- What will it cost to achieve this value?
We are working on building the YDS investment. We are coding the managers contract right now. It also needs to be audited to make sure it is safe. YDS will eventually be a product that Yam offers to the public and we will be charging a fee of 2% for anyone that wants Yam to manage their funds. One has already asked us to help them manage their treasury.
YDS will provide value to Yam ecosystem and Yam Treasury. Value will increase over time as more people put money inside for us to manage. The cost is minimal to hire the people to build and manage.
Now this brings me to your proposal.
Using the treasury to buy yams will temporarily help increase the price. But if you do not create products, the price will stagnate again and you will have to buy more until you run out of money.
It does not create any real long term value, only short term gain. It will also end up costing a lot.
I do understand your concern, but let me ask you a question:
If this money was yours and you could spend it two ways:
Would you just spend it to push price up then it slowly comes back down because people know there is no value generation.
Do you find a way to invest the $600,000 to create a product that can add value over a long period of time vs a short period of time.
Also there is a problem that if we create this protocol, someone will just buy before and sell against Yam right after to make money for free.
Not a big fan of buying up YAMs for the sole purpose of pumping the price.
We don’t buy back yam just for pumping the price, but also take yam as part of the treasury investment. Just like the companies who is confident with their future will buy back stock when the price is lower.
And we have dfi, eth, yusd, sushi treasury portfolio, why not yam?
I vote for this proposal.
The treasury already benefits from a higher YAM price since every positive rebase buys ETH with YAM. If you think about it, the treasury benefits from the upside of the YAM price but is less burdened by the downside (the burden is that it will take more price appreciation to raise more funds). If we sold assets for YAM then we would be more at risk of swings in both direction.
I agree that at some point we should be buying back YAM. But not now as we are going to need all of our treasury to build products and invest in order to later be able to buy back YAM sustainably.
I’m fully against that, because YAM wales will just cash out our treasury. Now they can’t do that for reasanoble price. If our biggest wale (780kYAMs) sells - the price will drop buy 40%. THat is why he holds. I’m also against increasing liquidity for the same reason. And unfortunately, the coomunity votes for decreasing treasury vault from 10 to 5%, thus we get less trasury from rebase and it will be cheaper for wales to play pump-n-dump game with little fish (that FOMO buys and then panic-sells repeatedly).
The main value of YAM’s protocol is it’s treasury. AND the MC is treasury value multiplied by som multiplicator. The less treasery we have - the less MC is.
Yes treasury’s already benefited a lot from YAM price, but YAM suffer instead. The relationship between YAM price and treasury just like hen and egg. We get eggs(treasury) from hen (YAM), so we need to keep the hen healthy. Otherwise we get nothing if the hen dead. For now I just saw you guys keep talking about treasury but care little about YAM price. In my opinion they should be balanced. That’s why we need some mechanic to support YAM price when in negative rebase.
Even you agree that at some point we should be buying back YAM. From an investment point of view, the buying timing for an asset is when price is far beneath the true value. Continuously negative rebase make the price drop far below the value, that’s the perfect timing to buy YAM back. And also we have already accumulated more than 3M in treasury. It’s quite enough for early development of new products, considering we will keep growing treasury when in positive rebase.
Big wales also own big part of treasury. And also YAM is as important as the treasury, because it’s where treasury comes from. We should value both YAM and treasury, actually they are unity.