Proposal to create DAO treasury owned portion of i-assets in stability pools

Stability pools are the most essential part of the Indigo protocol and as the protocol TVL grows, size of the stability pools needs to grow as well.
Currently ROI on these stability pools are too high(above 80-90%) which will attract mercenary capital, which will leave in future when returns dry or when they are needed the most( like last mass liquidation event).
What i propose is that we can cap the upper ceiling of ROI like 30-40 or 50% for the stability pool. And rest of the Indy tokens which are allocated for stability pools can be transferred to the DAO treasury which will buy and hold I-assets in the stability pool permanently.
By doing the following, it will create additional revenue sources for DAO Indy stakers as well as give stability to the stability pools for long term.


Just to be clear.
Indy rewards above the 50% threshold would be sent to the DAO treasury.
Then the DAO would sell those indy rewards and use the ada to buy back iassets.
We would then put those iassets back into the SPs to farm more Indy?

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In this case stability pools will get good and constant rewards for their efforts at the same time if and when rewards are more due to appreciation in price of Indy will all go towards stabilizing stability pools for long term.
Yes it will create sell pressure for indy-iasset pools for short term but in long term it will create a long term stability for stability pools and Indy stakers.
To reduce the volatility, we can further create one sided stable swaps for indy-iasset pair on Indigo app itself which will reduce volatility.

I like this proposal. Can we also include liquidity for iAssests? Protocol owned Liquidity + Stability Pools. Maybe we can divert a portion (probably 1%?) of the ADA fees (fees from creating and adjusting CDP’s) into liquidity like what Minswap is doing (Fee Switch)? Start with iUSD first so that atleast we can have a good stablecoin liquidity in Cardano.

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On second thought, I think it would be better to start first with PoL as it can generate revenue from ADA staking and yield farming in DEXes.

Purpose of this proposal is to create sizable portion of assets under ownership of DAO which will provide stability to the the protocol created assets in tough times/ future bear markets.
we need DAO to have multiple sources of revenue, where part of revenue goes towards providing long term stability to the protocol.