Use balancer smart pools to earn FEES + ICAP + BAL
J
Further to my previous post, and after discussion with zirs on discord, we came up with this suggestion to stake and earn interest in 3 different ways, while helping invictus by providing liquidity and volume.
Using Balancer can help to mitigate the impermanent loss, since it can be any % balance in pool (not 50/50 like uniswap but anything from 98/2 to 20/20/20/20/20).
The other perk is that you will passively earn BAL by providing liquidity. If we pool on balancer, then we can stake our BPT liquidity tokens with invictus for ICAP. This means we earn both BAL (15-27% APR approx) and ICAP, while also collecting fees from swaps.
Balancer also has the advantage that you can make a "private pool" or "private smart pool" which only whitelisted addresses can join. This could solve the KYC/AML issue.
Here are all the current IHF Balancer pools, and their summaries:
Here is the documentation about balancer smart pools:
And specifically there is one for using KYC approved addresses:
Y
Yokozuna
I like this idea, although I'm not up on which options would be best I think I'd be interested in pooling as long as I fully understand the mechanics. If we can do something like this then it'd lock up some of the larger token holders' funds and I presume make the market a bit more stable. Definitely following.
A
Agape
The 50/50 split on Uniswap indeed isn't excellent, because we're here to invest in Invictus funds, not Ethereum or DAI. Balancer could be better. Staking the liquidity pool tokens on the Invictus Portal for ICAP is an excellent idea.
I don't like the idea of a private pool. That would exclude users and hinder the use experience and liquidity.
One concern is the longevity of the Balancer protocol. Uniswap seems to be the market leader and v3 releasing "soon", while Balancer seems to be declining. Even if Balancer does seem to have better features, is it stable enough in the longer perspective? Or is this viewpoint even an issue, given that the liquidity could be relocated?
maaft
Sounds great!