Right now I think my biggest concern is the premium at which TCAP trades at versus its minting price via the Chainlink oracle. It has been fairly constant since inception and because the arbitrage opportunity needs the premium to close towards fair value or become discounted in order to be profitable, it becomes a much more risky play. I think getting more liquidity in the TCAP vaults and subsequently into the TCAP/ETH LP, is a solution to this issue and that could come from incentivizing minting, adding new collateral or a combination of the two. Obviously open to suggestions, questions or concerns and posting this in order to get a discussion going on the topic.
I think the same thing. We shall try to incentive the minters again. Also, something similar to mirror protocol v2, we can add a mint and sell it immediately option with extra incentives to take down the premium.
I think here is where it makes sense the Olympus pro incentives. As the issue of minting TCAP is that people just hold it, claim the rewards and then burn TCAP. But with Olympus pro, they will need to mint and then trade the LP for their rewards.
I was thinking about this a bit.
If we created “zaps” on the Cryptex app, similar to what Maker does (Screen grabs below) and incentivized this action. It would incentivize people to mint and sell their TCAP.
Leverage long your collateral vs the market (In this example we’ll use ETH)
Deposit ETH > Borrow TCAP > Sell TCAP for ETH > Repeat
Earn LP fees (1% APY) & CTX staking rewards (31% APY) for participating in the ETH/TCAP liquidity pool on Sushiswap.
Deposit ETH > Borrow TCAP > Sell 50% of TCAP for ETH > Deposits 50% ETH / 50% TCAP into SushiSwap LP > Stake LP token
This would solve the issue with people minting and not selling.
What do you think about this?
mint and sell with incentive seems reasonable, we want to bring the tcap price close to the tracking total market cap, to motivate some more trading activities.
Olympus Pro was brought up again in the discord recently and it might be the best option moving forward and worth experimenting with. I think the exposure to all the other DAOs using it may go a long way, especially if we can get TCAP into the Olympus treasury… which I think they do through a protocol fee
While Olympus Pro is a great tool for gathering liquidity, the type of asset as collateral for the bond should be considered. Say you want to create a TCAP/ETH bond. While you do stimulate the creation of TCAP, it goes back into the Cryptex Treasury and the upside of this would be limited - I suppose you want more diversity of assets and may not want to reabsorb TCAP tokens.
Circling back to one of the potential metrics that the superUMAn community can help you with on TCAP minting.
One method to stimulate it is to airdrop KPI options to the community where the KPI is a metric on volume minted, such as TVL, or even amount of TCAP sold on the market (as the only way to get TCAP is via minting, it is a secondary method of stimulating growth). You can then pay out KPIs achieved in CTX or other tokens. I believe it is equally powerful as OP, and I suggest the community look into multiple avenues of stimulating TCAP growth if possible.