Popsicle product wouldn’t manage the liquidity like this for BadgerDAO, and yeah, we have explored the options. There’s been an extensive discussion about it in the rff channel on Discord.
In short, these products are fee optimizing, not liquidity optimizing, and they imply value loss due to rebalancing.
And we don’t want TCL to rebalance, to buy high and sell low, most importantly we don’t want our treasury to sell its Badger when the price goes down because of that rebalance.
We want deep and reliable liquidity, so even risks aside, the concentrated liquidity rebalancing model isn’t that suitable for TCL in my opinion, at least not for the core position.
If we wanted to maximize the fees, we could just cancel incentivized liquidity alltogether and capture the majority of the fees from trading volume in TCL. And at that point the fees that we wouldn’t capture would be worth it too, as it would mean that someone provides liquidity to Badger “for free”.
With the TCL model we’re trying to achieve deep support on the “buying” side of the LP.
This support would grow further/faster in the scenario of Badger price appreciation - and at the same time it would unlock more funds to utilize productively, while these funds would still become available on the buying side of LP if needed, without selling Badger.