I don’t have any specific documentation to point to unfortunately, but I do think it would make a great case study or meta-analysis. In general though, I know IL was one of the main reasons why Ampleforth and Balancer decided to work on the Balancer Smart Pool Contracts together.
In my admittedly under-qualified opinion, I think what tends to happen is that the volatility between your LP assets tends to get amplified as a side effect of people’s psychological responses to the rebase mechanism. Anyone staking in an LP will get hit hard by IL if the market hasn’t appropriately factored in the rebase into its initial response to the token launch. And in that context, the corrective action of the rebaser is likely to cause confusion among people who weren’t prepared for it (because if they were prepared en masse then the market would most likely reflect that), which can trigger subsequent viral kneejerk market behavior that compounds what the rebaser is actually doing.
It’s one reason why I’m convinced that narrative framing, education, and communication are so important for these early rebasing projects who are carving out e-fi domains out of the crypto wilderness
Airdrops are kind of a robinhood type event. Badger tries to make sure the small guy gets some too. If you have a lot of badger staked for a long time, you’ll have a high multiplier in the geyser and get tons of digg from staking.
I haden’t considered this, however in light of your making reference to it, I remember specifically how grimy I thought that to be when I saw SushiSwap making an outright call to those with LP’s from Uniswap to bring their assets over to SushiSwap, I believe it may have even provided gas for the exchange.
Competition is healthy, but in a thriving ecosystem like ours, actions like this are more than distasteful, they undermine the very core values of community wealth building.
Further, as a fork of Uniswap one might even expect a debt of gratitude, there are so many ways in which that situation could have been handled positively that would have facilitated growth and community camaraderie for all, that were entirely thrown-out.
I too concur, that we should focus our efforts and rewards on a Uniswap Pool. Regardless of the founders fondness for YFI, and any of their projects, not all is about strategic networking, occasionally principles must guide before ALL else.
Maybe by next time we do something, SushiSwap will have participated in a more civil, uplifting, and meaningful way within the Defi community and will be better fitting for such an opportunity.
What a great thread! Thank you for sharing your experience as it’s invaluable as we venture on our own journey. We hope to have you participate in our community moving forward!
I was one of those advocating for low initial supply (and voted as such). After catching up on the comments from the past few days, I’m in favor of a higher total supply. I wasn’t thinking of the IL that would have to be shouldered by early LPs if we start out with several early positive rebases, which is a group we should be incentivizing as much as possible.
Combined with the very initial supply from the airdrop at 15%, is only a circulating MC of 22.5M day 1. So, yeah, if it’s not too late at this point, I’m in favor of one of the higher initial supply numbers.
Sort of on that note, the more I think about it, the more I feel like we should be prioritizing getting a smart pool set up on balancer. Mitigating the IL from rebases should go a long way for LPs, since DIGG’s price should stay close to BTC. I know I personally wouldn’t be an LP in a 50/50 DIGG/wBTC pool in the first few weeks, or possibly ever if the rebasing proves to be too much of a problem. I would jump in at a smart pool though.
I do understand the thoughts on focusing on pools at sushi and uni, and I’d support those too. But I think the bal smart pool should be a priority for early LPs looking to avoid IL. Maybe it gets a smaller share of DIGG rewards since there’s less IL, and thus less risk for LPs, but the option should be there.
Pessoal boa noite, sou brasileiro já estou apostando a algum tempo meus badger , comecei no começo também , mas só agora que pude notar o fórum fico muito feliz em fazer parte desta comunidade. Obrigado a todos . Uma pergunta eu sou apostador de longo prazo também , não vendo meus badger estou para lp. É só agora pude notar esse lançamento aéreo . Como eu posso fazer para estar participando e ajudando a comunidade . Valeu
Good night guys, I’m Brazilian, I’ve been betting my badgers for some time, I started at the beginning too, but only now that I could notice the forum I am very happy to be part of this community. Thank you all . A question I am a long-term gambler too, not seeing my badger I am for LP. It is only now that I have noticed this air launch. How can I do to be participating and helping the community. Thanks
