Having staked BALN from day one I feel its time we saw some profit. Daily rewards are fine but lets face it unless you are whaling it they dont amount to much.
Therefore I propose that all profits made from recent liquidations be distributed to BALN stakers.
I think it would be a gesture of good will to Baln stakers waiting on BBaln that is still not yet delivered.
I don’t agree with this.
Daily rewards are directly correlated with trading volume. As a BALN staker, you should know this. If the implied APY of staking does not meet your expectations, unstaking and deploying the capital elsewhere may be wise. Revenue from liquidations are not for boosting staking rewards.
The previous “gesture of good will” occurred because of the extensive rebalancing, and the overall unfamiliarity with the rebalancing system. Since then, improvements have been made, and the peg threshold has been set to ±10% which resulted in minimal rebalancing even in times of extreme volatility. In my opinion, the 10% peg threshold is already a gesture of good will.
I thought this was supposed to be a Dao, in which case is it not down to the stakers as to whether or not revenue from liquidations should be used to boost rewards?
Right, that’s why I shared my opinion.
I agree with the points raised by @bwhli and also will share a few more.
1.) In this market, I think what’s better for the DAO is to retain these proceeds. During market downtrends, you wouldn’t see a company do a one-time large dividend, you’d see them conserve capital.
2.) Moving this sICX to the DAO Fund would be more reasonable and it could be used for protocol-owned-liquidity in sICX/bnUSD or sICX/BALN
There are many options for the funds held in the DAO, but paying out a large, one-time reward simply for staking BALN will be value reductive to BALN. Would cause a pump to grab the airdrop, then dump as the intrinsic value (value controlled by BALN through DAO and reserves) drops
I agree with some of your points.
However if one off liquidation gains were distributed pro rata retrospectively to BALN stakers (I think a bit like what was suggested for bbaln the longer you’ve staked the more reward) would it not avoid any pump and dump scenario and also encourage long term staking?
My point is im looking for a bit more from my investment, arnt we all. I worry price might just keep falling like omm and I end up with a bag of nothing,
Maybe it is a better strategy to sell and buy back in when price is lower because currently the rewards are not amazing.
I think adding liquidation gains to stakers rewards or even a percentage of it is a legitimate suggestion to make staking baln more attractive.
Or you could just get BBaln sorted and I’ll shut up​:pray: