TLDR 90% of raised liq -> .98 - 1 concentrated liq range -> thrown into boxFEE backing wen fully in x (boxETH), whilst boxETH minters utilize this deep liq to generate their own ranges (prob above respective boxETH resolve price, 1), while the other 10% -> .9 - 1 range as POL
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As such, the effective boxFEE โbackingโ @ t(0) will be a min of .88 - .89 assuming boxETH = 1 ETH (depending on net div loss from concentrated LP)
Naturally, protocol fees to boxFEE hodlers (resolve fees, % of stETH yield, POL, etc) will accrue in the form of boxETH backing
Naturally, protocol fees to boxFEE hodlers (resolve fees, % of stETH yield, POL, etc) will accrue in the form of boxETH backing
In addition, no oneโs gonna mint 1 boxETH:1boxFEE bc dilution/exit liq for presalers (who got in @ .1) + permissionless boxFEE v3 LP (will be able to buy at a relative mkt price thru LP) โ thus net boxFEE in circ literally cannot go up wen <1 boxETH backingโฆ
Given presale ratio of .1 ETH per boxFEE, >.1 backing = net breakeven/price discovery, or (net boxFEE raised - backing @ tโ+1 after liq out of range) = the effective fees needed to be accrued to breakeven
(plz donโt dilute me thnx, obvs directly relative to liq raised)
(plz donโt dilute me thnx, obvs directly relative to liq raised)
Oh damn, the 10%-as-POL will eventually be added to backing as well, ggwp
Will not be sharing fee rev predictions here bc I donโt want yโall to dilute me aaa, tho if we were to assume an avg system LTV of 33% (300% TCR), comes out to 1% + (.25 * .33) = 9.25% of system stETH yield diverted to boxFEE backingโฆ
(resolve fee semi-derivation below)
(resolve fee semi-derivation below)
As stETH yield <-> ETH borrow rates naturally continue to converge (esp post-Shanghai), gonna be p cool to see how *current* LSD loopers/stETH collateraloors utilize @catinaboxfi, genuinely unique PMF here
(yes the system incentivizes users to keep low LTVs in the form of amped *base* yield on overcollat relative to TCR, however the 0 IR <-> var yield (obvs net pos) aspect will def create sufficient incentive for those to take out larger debts, albeit depends on system convergence)
Sry yโall, meant to say 90% of raised liq -> .99 - 1 concentrated liq range (not .98), thus div loss slightly mitigated (albeit *net* relative to fees accrued)
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