irc Liquity scored well in this regard

Hi what will be the frequency of Liquity risk re-assessment once we go-live with this since things are ever evolving at a fast rate? Is there a treasury portfolio re-balancing since some of the assets will outperform the others?

  • irc replied to this.

    irc ETH is provided and LUSD is taken. This is considered acceptable as the treasury already accumulates ETH and LUSD bonds can replenish any LUSD removed from our deposit.

    Is LUSD counted as RFV while it is used to buy ETH? What happen after LUSD is consumed to buy ETH till it is fully replenished by LUSD bonds?

    • irc replied to this.

      devoltaire good questions. Liquity is actually pretty interesting from a risk re-assessment standpoint because it is immutable, so we really only need to keep an eye out for new types of smart contract vulnerabilities. The DAO will do its best to look out for possible concerns with the protocols we have whitelisted, but obviously we ask the community to raise possible issues in the future if they come across anything.

      Regarding re-balancing, that could also happen, but only within our whitelisted protocols and never exceeding our 33% cap.

      HumbleFarmer Yes, I believe we will count the LUSD as RFV while in the stability pool. Based on past data only small percentages of LUSD should be used for liquidations unless something major happens. Due to us continually bonding new LUSD into the treasury, I don't expect to see any major dips, but anything is technically possible with these funds. Also, keep in mind that the LQTY we earn will be staked which will earn us more LUSD. I hope that this will make up for most of the LUSD taken from our stability funds over time.

      Resounding yes to this proposal.

      If I am understanding this correctly then the only risk is that ETH goes way down in value that LUSD have to be rebalanced. Considering we are still in a bull market, I think we will have enough time to stake a lot of LUSD before that ever happens so that is a yes from me.

      As we support Liquity already by holding LUSD, I see this as a natural extension.

      Great risk assessment!

      I really like the framework thinking initiative. Just a few questions on the logic reasoning before I vote: 1. you mention that "Liquity scored well in this regard". It seems it is outside of the blue "safe" zone from my glance, wondering how does this benchmark against other whitelisted protocols. 2. I want to ask if we have any existing frameworks gauging return/benefits vs. risks. Then my follow up question is that how does the quantified returns from depositing/staking in Liquity benchmark against other whitelisted protocols. Thank you sir. @irc

      It's all too obvious. More revenue for the protocol.

      This is a great idea, and I would like to make an additional suggestion on top of this.

      This LUSD can be deposited in the Stability Pool for Liquity through BProtocol (https://app.bprotocol.org/liquity).

      This will allow to continuously convert the ETH from Liquidations back into LUSD.

      In addition, there is a $BPRO Liquidity Mining Program (https://twitter.com/LiquityProtocol/status/1442491757246091265?s=20) going on that will run until mid December that includes this Stability Pool.

      So this is a no brainer.

        irc
        Hey OHMies,
        My name is Eitan and I'm leading the ecosystem development at B.Protocol.

        As ramaruro suggested - B.Protocol can be a great fit for this LUSD strategy to make sure the Olympus DAO's LUSD funds are automatically rebalanced after liquidations in Liquity (ETH is sold back to LUSD and deposited back into the Stability Pool).

        B.Protocol was founded by Yaron Vlener, ex-CTO of Kyber Network, and was launched in Oct. 2020 with Liquity integration up and running since Aug 2021. TVL is ~$95m, out of which 16m is in Liquity's SP.

        You can hear more about this integration on this call we had with the Liquity team -
        https://youtu.be/t81WxsStfD4?t=48

        Or do some in-depth reading -
        https://medium.com/b-protocol/b-protocol-liquity-integration-is-live-1342605e7cfb

        We would be more than happy to set up a call to explain it in more detail and see what's needed to make it happen.
        Or just whatever questions here on the thread.

        Thanks

        *For a wider perspective/credability on B.Protocol:
        - we were voted by MKR holders to open up a new MakerDAO Vault (WBTC-B) which will be liquidated by the backstop of B.Protocol [https://vote.makerdao.com/polling/QmYzt3ub?network=mainnet#poll-detail]
        - Voted by SPELL holders to integrate our backstop on Abracadabra [https://snapshot.org/#/abracadabrabymerlinthemagician.eth/proposal/QmVtBKUF3MqNA4bhcQn1XrsPrbRtcRbDBXMNebLV5tq3dM]
        - The B.Protocol-Liquity integration just got listed on Instadapp (the 8th protocol Instadapp integrates) - https://twitter.com/bprotocoleth/status/1452287397966790656

        Regarding the stable pool you call, in my opinion, there is no absolutely stable mining pool, there will be risks and impermanent losses. If it is a platform currency, it is a bit more risky. Nowadays, few people are doing liquidity mining in the form of pledged funds. Smart people will choose low-risk investments.

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