Aave latest annoucement has blown away the design space for our palStkAave pool.
In short, they are creating a stablecoin collateralised by aTokens and offering discounted mint rates to stkAave holders;
We wanted to open a thread to crowdsource ideas before using our common weight in the Safety Module to try and get details / help fleshing out an optimal version of their proposal for our palStkAave holders.
Here’s a few potential implementations we could have:
- Easy mode: We try and get palStkAave users the same right as stkAave users to mint at a discount;
- Casual mode: We lend out to market makers the right to mint at a discount;
- Hard mode: We create arbitrage strategies as a DAO, use profits to buyback PAL, and reidistirbute them to stakers in our pool.
Of course, a lot of technicial details are still missing, but needless to say I am hyped, ans so should you!
This opens new design surface for Palstk tokens.
I am fully supportive of more ideas that can “give” Governance Rights/power to Aave’s stablecoin holders.
IMO it makes sense to start with easier low hanging fruit as described in the initial post by @Figue then learn, evaluate and if beneficial reiterate into more complex strategies where a new Palstk token for Aave stablecoin users might be used.
Make a poll?
The best option for the DAO is the 3rd (IMO)
But the 2nd option is good too… but I really prefer the 3rd haha
The first option is nice for the users, but not necessarily for the DAO itself so I’m personally not for this option
These are very good ideas, and it’s a great opportunity that Aave offers to us !
Who would be eligible in this easy mode? Is it only palStkAave holders who did not stake on Paladin and who did not deposit in the Curve pool & stake in the Gauge? Or would it be possible to combine the farming and benefit from the GHO minting at a discount?
Obviously the 3rd option sounds like the most interesting one as it would maximize revenues for the entire protocol and therefore also benefit the holders, but it’s the most complex to build as well… it all depends if the team is up for a good challenge!
Honestly all of this depends on the technical specs of GHO. We are waiting for more info before starting to work on implementations.