biscuit
Valid point, but I think the long term stakers would want to use internal bonds instead of just staking.
Rephrase: What you said is true but I think that the internal bonds are meant to replace staking for long term folks.
Long stakers could just buy long dur bond tokens from LP to do that. The secondary market would set APY for each dur vault in real time.
Fin maths rephrase:
In a normal (regards to market condition), rational market, where LP is high liquid for a trade range and amt: FV[bond] > FV[staked] for any given principal since (bond apy > staking apy).
That means PV[bond] < PV [stake] (it’s better to buy bond and hold that than just stake).
I have made a few comments here and mega thread on Twitter if this is interesting to you.
I also have reached the preliminary conclusion that illiquid locked stakes will be essential to “correct” the current market dynamics.
These proposed internal bonds are made liquid by vaults. Therefore I think they have little / no impact on the overall market dynamic.
Bond vault LPs will probably each bear exactly as much selling & rebase selling as they can possibly bear. Top level POL sell pressure remains almost the same with this dynamic. Therefore the market dynamics I describe on Twitter (see my other comments here for link) are unchanged and the cycle continues.
I’d love to be wrong and I am hoping that I’m missing something. I’ll rest and circle back when I have the mental stamina.