I like the idea of enabling some features to be more inclusive to long term hodl’ers and community members in general. However I see minimum purchase amounts running counter to the purpose the creators initially set up to serve (WAGMI)!
Lets keep in mind that this protocol serves the SPELL holders in part via liquidation fees. So to that end we should really focus on allocations vs whole restructuring. I just want to point out that at some level we need people to
ape in and take risk, get reked by liquidation or pay off their loan because we get paid for it. To that end a 30/70 or 40/60, etc/etc % allocation structure should be considered for this. This aligns both frog and whale interests neatly. Start slow, move in increments towards equilibrium and re-evaluate over time.
I want to encourage everyone here to resist minimum purchases requirements and prefer time invested as often as possible. There will definitely be a balance. Holding 10 SPELL for 10 years is easy if it buys you access to 100k MIM. So keep initial investment requirements small and target % changes for increases in MIM access (end over end % increases per vesting period) solves both sell and buy requirements at once. Further hedge against sales pressure using penalization for sSPELL sale/unstake but in moderation.
I will acknowledge permissionless systems are by nature difficult to protect against abuse or fraud so in the end if we have to target specific valuations then we need to structure it in tiers so to protect smaller participants.
I recommend the following be considered:
Short duration windows (2~4 hours), Degen pot takes all.
Well defined alternating schedules
– time zone,
– as needed basis
– announced by leadership ahead of schedule
– reallocate percentages of MIM from underutilized to overutilized cauldrons
(Offset: [Schedule], [Chains], [Cauldrons])
- UTC-0: [2AM, 4PM], [ETH, AVAX] [cvx3pool, spell, sspell, wmemo, xjoe]
- UTC-4: [2AM, 4PM], [ETH, AVAX] [cvx3pool, spell, sspell, wmemo, xjoe]
- UTC-8: [2AM, 4PM], [ETH, AVAX] [cvx3pool, spell, sspell, wmemo, xjoe]
- UTC-0: [2AM, 4PM], [FTM, Arbitrum, BCS] [wftm, eth, wbnb]
- UTC-4: [2AM, 4PM], [FTM, Arbitrum, BCS] [wftm, eth, wbnb]
- UTC-8: [2AM, 4PM], [FTM, Arbitrum, BCS] [wftm, eth, wbnb]
Minimum Hold Requirements
- 30 days sSPELL to enter
- minimum 200 usdt/usdc/mim sspell capital requirement
- consider small re-entry time requirement after exit unless cauldron was deprecated
- consider de-pegging tiered position on sale or unstake sspell position
- consider end over end sspell capital requirements (15%/year/peg)
Initial Presale Benefits
- 10% of all MIM allocated for that given cauldron to presale.
- 5k maximum per-address MIM allowance (mMA) if all minimums are meet.
- 1 borrow limit during presale window per cauldron per IP/MAC address
Maximum Presale Benefits
- 50% of all MIM allocated for that given cauldron to presale.
– consider higher values for coveted cauldrons (wMEMO) & those aligned in the ecosystem.
- 1.5% cauldron allocation in maximum per-address MIM allowance (mMA) if all minimums are meet.
- 3 borrow limit during presale window per cauldron per IP/MAC address
Tiered Position (Peg) Requirements
- Assign maximum hold requirements term (rT = 12 months).
- Add equal portions of borrowing capacity per month (100%/rT = 100/12 = 8.333%)
- Consider end-over-end sspell stake capital requirements (e.g. move to peg 2 with 15% increase in holdings from peg 1 allowance)
- Consider depeg from tier/month x1 or x2 from sspell unstake/sale.
- Example Schedule (Months, MIM):
rT = 12, mMA = 5k | 10k | 100k
– 0: 0 | 0 | 0
– 1: 416.50 | 833.3 | 8333.00
– 2: 833.30 | 1666.60 | 16666.00
– 3: 1666.60 | 2499.90 | 24999.00
– 5: 2083.25 | 3333.20 | 33332.00
– 6: 2499.90 | 4166.50 | 41665.00
– 12: 4999.80 | 9999.6 | 99996.00
Using a well structured approach will allow the community to fine tune these inputs. Obviously metrics would play a critical role in feedback for further tuning.