How much of a premium on yields should you get for locking? What do you think is fair/economically sensible for a robust 2-token economy such as Aura’s?
There should be, and is an expectation that Liquid Lockers in the Balancer ecosystem should find their way back to peg on a regular basis. The DAOs that have failed to do that, we (Aura and Balancer) have in the past labeled them failures and/or grifters. As such, we have avoided giving them much space, time or consideration our ecosystem.
So no, AuraBAL shouldn’t always trade at peg, but it hasn’t in a long time and seems to be worse not better. Further this Temp Check paid like 2 sentences of time to talk about how it would be addressed (moving away from a stableswap) without ever providing any analysis or details, or even an expected result. Do you think this is the appropriate handling for AuraBAL? Why?
This proposal is replacing POL with expensive incentivised liquidity (trying to compete with vlAURA yields). It also seemingly kind of gives up on the idea, or at least the liquidity mechanisms to support it, that auraBAL should trade at around the price of the BPT that people put into it.
I agree more Aura liquidty is needed, but moving from POL to direct incentives on a high yield token is wasteful.
I’ve said what I have to say now, but this is not the way, at least not if the OP cant’ take the time to answer questions/conversation about efficiency and auraBAL peg, and there is not agreement to try something else if it doesn’t meet it’s stated objectives (which are somewhat unclear).
The specific range, reasoning for the proposed AuraBAL E-CLP has still not been defined/is not available for community review.
Had a thought typing this:
The issue with Aura should be that people can’t buy a lot. A portion of that 2 million(maybe half) aura could be put back into POL, in an E-CLP at above the current price so Aura can enter single asset and not have to treasury assets other than AURA to the POL position. Then there will be lots of room for folks to buy Aura, and sell it again, but we’re not just spending tons of AURA on yields so people can dump it. Imagine AURA/USDC ranging from like 75 cents to 5 dollars.
Could use some of the leftover Aura to increase the incentives on auraBAL liquidity and/or maybe stand up this USDC pool next to the stableswap and create some L2 liquidity on base.
This seems to me like it would be much more efficient and effective at improving the liquidty situations for all the Aura tokens.
Moving Aura locking to 80/20 would be another great way to secure deeper liquidty without paying for it with lots of inflation.