Budget $600/month for rebase execution reimbursement
Basic Summary
Execute the rebasing twice a day regularly, and propose a budget of $600/month for rebase execution reimbursement from the treasury.
Abstract
The YAM protocol should automatically excute the rebasing mechanism twice per day, not randomly. This is the basic regulation of YAM.
Motivation
Rebasing is the basic mechanism of YAM. We should do it automatically and regularly. In this way, YAM will attract more market attention and fulfill its initial goals, an algorithmic stable coin.
Specifications
We should use the treasury to pay for the gas fee of the rebasing, it’s about 600$/per month. Furthermore, I suggest that we can use the jobs in KP3R to do automatic rebasing everyday.
this is a good idea! In early stage, there was no treasury, it is ok to make the rebase controlled by public. However, when there are treasury, it can support a automatic regular rebases.
Technically, yes, you’re correct. Someone (whether through Metamask or through an automated script) needs to execute the rebase. In practice though, running this with a script will for all intents and purposes “automate” it.
I think this proposal should be slightly modified to include a stipulation that there will be (within reason) reimbursement of costs that go beyond the $600, since gas prices can be very volatile. As an example, running a script to do rebases back in September (gas prices up in the 100s normally, sometimes spiking to 250-300) likely would have costed upwards of $2k.
Another thing that I think would help with this proposal is some simple data. Just going back through the past few weeks and getting the % of rebases that were executed, as well as the average cost of a rebase. Some data specifically regarding periods of positive rebases would be useful as well, since those rebases use more gas since it does the mint and sell actions
I agree that the $600/month budget isn’t really taking into account sharp increases in gas costs.
Looking at the rebases, I’m seeing a range of $2 to $20 per rebase. This would imply at current rates (2 rebases per day) of upwards of $1200/month ($40 daily). The low cost days should be able to offset the high cost days.
Because there are often no clicks, I don’t have to sell before rebase. This is the rule of the game and has been accepted. The decrease in the number of tokens is not a good feeling.
Requirement of using keep3r and listing a job is acquiring KP3R tokens and providing liquidity with ETH.
Pro is that this service is free ,you will save on the reimbursement as keep3rs are paid directly from their treasury in ETH or KP3R.
This is an excellent idea and let’s connect with keep3r networks connected and make the rebase clicking automation by publishing the first yam keeper job and run it everyday.
Honestly I wish this proposal was broader: “should be rebase call function be incentivized”? If we come to the conclusion that the rebase mechanism is not being called and that is a problem, then we should look into what the best way to incentivize it and how much YAM or ETH needs to be put forward. The $600 number seems arbitrary and a set amount may not be preferable over a stepped model. Diesel posted about that here: YAM Rebase Reward Pool
This is unrelated to the question of whether we should have a rebase. Clearly if we don’t have a rebase then we don’t need to incentivize it. But as we do, then we should be optimizing the system, and this proposal raises a good question about how to do that.