Deploy treasury to farm UNI

UNI farm treasury strategy for LP incentives

Basic Summary
I propose that we allocate a large percentage of the treasury to farming the UNI pools.

Abstract
The UNI token is a major defi staple and it would be prudent to collect as many as we can while the opportunity is here. Our treasury currently is deployed in the yUSD strategy however we have a short window of opportunity to accumulate UNI for further flexibility.

Motivation
We need to develop strategies for promoting positive rebase and higher LP returns in tandem. Additional farming revenue from UNI can further be distributed back to LPs in the form of UNI or converted to buy YAM from our LP and placed back to incentivizer to redistribute. There is a lot of potential to solidify our liquidity incentives for the crucial growth period where many LP have criticized and left yam due to the hungry treasury.

Specifications
I propose we supply liquidity from treasury to each UNI pool in equal value to maximize UNI returns. This program runs through November, after which we can revisit treasury strategy.

The UNI collected should be used to buy YAM from LPs and then purchased YAM replaced into incentivizer. This will potentially bring much buying pressure back to yam, increase farming APY, and further positive rebase to grow treasury and develop a stronger price floor.

6 Likes

I think this is quite an interesting idea. UNI farm is very low risk and stable.

An intermediate step to achieving this would be to allocate an amount of the treasury to ETH as opposed to yUSD. I’m in favor of that as it helps us reach our diversification goal.

I definitely disagree with this part though. If we farm UNI, we should either hold it or sell it for ETH/stablecoin…

If this proposal were reformed to be a little narrower and well-defined I would support it.

“Allocate X percentage of the treasury to ETH, withdraw matching amount of USDC from yUSD, and provide liquidity on Uniswap for staking rewards”

Because of the necessity to allocate to ETH, this plays into how large of a position we’d like to take. Similar to the DPI allocation, somewhere around 250k at this point makes sense, about 4% of the portfolio.

If both were to pass, we would have about 8% of the treasury dedicated to unstable, higher risk/growth assets andd 92% remaining in stable yield bearing.

5 Likes

I do favor periodically selling at least some UNI to further incentivize LP in order to encourage more positive rebases. If we develop a feedback loop consisting of:

Treasury -> Farming returns -> LP incentive -> Positive rebase -> Treasury it can be a more potent stimulus than a communal UNI holding. I understand the trade-off is we miss UNI price appreciation but I think it is more efficient to bootstrap the treasury fund further in the infancy of the protocol so that we may begin compounding.

I am not opposed to holding UNI, but I have concern about our treasury stagnating if we cannot produce positive rebases. If another proposal such as the YCP, lottery, or NFT can stimulate buyers, I would strongly favor holding UNI instead.

With regard to amount of the treasury to expose to ETH, I am in favor of a higher percentage as it is the native asset in the ecosystem. 92% yUSD treasury is not aggressive enough in my opinion, but I would like greater discussion within the YAM community.

1 Like

I like the idea of our treasury farming and holding UNI quite a bit. UNI has the potential to become a long term revenue stream with with Uniswap fee distributions.

And holding UNI will allow YAM tokenholders to have a voice in Uniswap Governance, which could be an important platform long term.

4 Likes

Agree this should be relatively lower risk.

1 Like

Like this idea. Provide liquidity on Uniswap for UNI staking rewards by allocating some percentage of the treasury to stablecoin / ETH pair.

So When post a proposal at Snapshot?

I support the idea. It’s great

Think this idea is more valid and less risky than the defi index fund. Crypto exchanges always earn money with crypto.

100% Agree this !100% Agree this !100% Agree this !

I don’t think we’re quite ready for snapshot voting quite yet as proposal should be revised with more details (% of treasury, workflow, etc)

@yamfam good idea tho!

1 Like

If we farming one token, it should be YAM itself. 100% against now.

这是个好的建议!支持,uni作为长期对象,值得布属!

I support the idea ! :heart: