I’d like to propose we send the additional 10% from the iUSD MCR adjustment from 110% to 120% be returned to Indy Stake holders as an additional incentive to hold Indy rewards instead of dumping them on the market as soon as released.
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I dislike this idea. we should not be concerned with the trading price of Indy, rather the stability of the protocol. I’ll set up a proposal to have that 10% go into creating stability pool positions controlled by the DAO.
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I would support this we need to stabilize indy price for entire system to balance out. Indy is really underincentivized atm, and this would be a step in the right direction, at least temporarily until we see more user adoption of the protocol and fees start to become more meaningful in comparison to other incentivized options.
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its important to stabilize indy price since indy is the reward for providing SP. If we ignore indy price declines we are left with nothing to incentevize SP anymore.
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My argument against the DAO receiving control over the additional funds is it takes away from decentralization. The more people involved in staking Indy would have the opportunity to continuously share in the profits of the protocol. The more people attracted to holding on to their Indy will increase the number of smaller holders making it harder for a few whales to decide the fate of the entire protocol.
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While I agree it is important to stabilize the price of Indy I believe this should be done in a way that strengthens the protocol rather than funnels al of its money out to users. By putting this 10% to a SP position controlled by the DAO it should correlate to an increase in the value of the tokens controlling the DAO (Indy). This also ensures some of the value generated stays within the DAO. the DAO gains value by increasing its treasury and the protocol gains stability through a maintained CPD and its contributions to the stability pool.
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I do not see how this affects decentralization at all. is the DAO not a decentralized entity? this would still incentivize more people to stake Indy, knowing their position is backed by the protocol and the holdings of the DAO.
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Also, we want the current whales to be selling early while their positions are gaining them large portions of the DAO. lower Indy prices makes it more accessible to small traders. If we don’t incentivize the whales to bleed then they will control the protocol one day.
What better way to give the proceeds back to the people than distributing through Indy holders. A DAO is governed by votes yes but it’s hard for the masses to understand the benefits and things will remain the same.
Adding it as an incentive to holding Indy, it’s easier to understand, and it immediately has an impact on every Indy holder.
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Whales are accumulating. Don’t let the low price fool you. The short minded rewards dumps are beautiful to them.
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Hard, yes, impossible, no. Unfortunately I do not believe lack of education and knowledge is a good argument. We will have to teach the masses how DAO’s work and their benefits. with time I believe there will be clearer understanding. we shouldn’t ignore something that has long term benefits for everyone just because it is hard to understand and easier to accept immediate returns. Indy holders already receive a percent of every withdraw or liquidation event. Currently we have no mechanisms to grow the DAO.
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I don’t disagree with you here but time is a factor. Keeping things simple early will benefit retail investors more so than whales in my opinion. It can always be adjusted later.
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can you explain how this benefits retail more than whales? Whales already own large positions, wouldn’t this have the same benefits no matter what the holding size is? This has no effect on the distribution of Indy.
There aren’t that many whales involved in Indigo at the moment. There are a few but not at the level where we’d see explosive growth. If the price of Indy was more stable instead of dropping consistently every epoch I believe it would attract more retail investors.
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In my oppinion, there’s a bit of confusion around the purpose of Indigo and the INDY token price. The current INDY price is not a problem. It is going down because of schedule emission (we are being diluted every epoch), not because of utility. The price of INDY won’t be a problem when we have a more robust platform with more iAssets, more TVL and more liquidity in dexes. Basically, we are complaining because we are early.
People who opened an iUSD CDP is taking risk, people at the iUSD SP is taking risk, INDY stakers are not taking any additional risk to receive that extra 10%. Also, INDY stakers already receive 2% from all liquidations. People are selling INDY because that’s part of their strategy. It’s a free market after all. Maybe it would be good to reconsider the exposure to INDY if the price is really affecting that much.
Right now, liquidity is the main problem and we are not adressing this properly. Instead, we are just minting iAssets to deposit on stability pool and receiving the INDY rewards. We have iETH for 11 days now, a total of 358 iETH minted, and there’s only 2k ADA in TVL at minswap (less than 0.3 iETH to trade). If we really care about INDY price, we should use more the platform and support their growth.
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I agree, a neat benefit of the DAO building up holdings through collecting these fees is that we could in the future redirect them to increase liquidity as well. IMO the protocol will be much healthier when the DAO controls more positions that benefit it.
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One of the ways we can help boost a more robust platform with more iAssets and more TVL is by increasing the incentives to holding Indy early.
The same individuals who strategize around the price of Indy would hopefully prefer that strategy involve the price of Indy stabilizing or increasing.
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It is important to let Indy price to follow the market dynamic. If Indy price drops so be it…but it will give more incentives to traders buy the dip. The more people will accumulate Indy the more decentralized the protocol will be.
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If indy stakers receive the extra 10%, why would someone risk to open a CDP? Then it would be better to buy and hold indy only. But that means we would have less CDPs, leading to less fees. We need people to grow the platform by minting and providing liquidity so we can have 2% of fees from a big chunk (1B ADA, who knows), instead of 10% of a small amount.
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Seeing the Indy price rise instead of dropping every epoch would generate buzz. It would attract more people to see what the protocol is doing and lead to more people opening CDPs.
I see this happen in the NFT space all the time. People see a project trending and start asking a lot of questions. Buying in.
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