Pickle launches liquidity mining aggregator to understand its revenue strategy briefly

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Pickle aggregator copied YFI’s yVault model, trying to promote the development of Pickle through various product combinations and help PICKLE capture more value.

Original Title: “Pickle’s Canned Cucumber”
Author: Blue Fox Notes

Pickle launched PickleJars (canned cucumber, or pJars for short) yesterday. This is the pVault mentioned in the previous Blue Fox notebook article ” Pickle Pickles and Mining Micro-creatives “. The code has not been audited at present, most of them copied YFI’s yVault, and their contract logic is basically similar.

What is Pickle’s canned cucumber?

pJars (Canned Cucumber) is an optimizer for aggregate mining, similar to YFI’s yVault, whose sole purpose is to bring users the most benefits. When a user deposits a certain liquidity pool LP token into a cucumber can (pJar, also known as the token pool), he has the opportunity to obtain more of the token.

The main process is as follows:

  • Users deposit their LP tokens (liquid equity tokens, such as sCRV) into pJar (canned cucumber), and then receive pAsset;
  • Assets deposited by users will be deployed to the alpha-seeking strategy, which will generate revenue;
  • The proceeds are distributed in the token pool, which means that pAsset will increase in value.

In addition, in the operation process, there will be expenses. This part of the cost will be allocated to governance and PICKLE holders.

Pickle’s canned cucumbers can allow it to capture expense revenue. Its fee structure is similar to yVault, with governance fees and exit fees, etc. The exit fees are both 0.5%.

The main differences are:

  • 3% of the cost is allocated to governance to subsidize gas costs, while the cost of yVault is 5%;
  • 0.5% of the fee is allocated to the function caller as a reward for triggering the strategy
  • 1.5% fee is used to buy back and destroy PICKLE

However, with regard to the repurchase and destruction of PICKLE tokens, the Pickle community has put forward a new proposal: Some people propose to distribute this part of the fee income directly to users who provide liquidity for the ETH/PICKLE token pool.

Pickle canned cucumber strategy

Pickle’s first canned cucumber is pJar from sCRV. This is Pickle’s test of pJar. Users deposit sCRV to get more sCRV tokens.

Where does the income come from?

The income comes from the mining of sCRV tokens, and more stablecoins can be purchased through these mining proceeds, thereby mining more sCRV.

The specific process is as follows:

  • First, the user deposits the stable currency into the sUSDv2 pool of Curve, and then obtains the LP token of sCRV;
  • Deposit sCRV to pJar and get psCRV tokens;
  • Sell ​​the CRV and SNX token rewards obtained, and buy the least liquid stablecoin among them to obtain higher returns;
  • Deposit stablecoins into Curve’s sUSDv2 pool to get more sCRV;
  • Deposit the obtained sCRV tokens into pJar;
  • Repeat the above process.

According to current income, its APY is 40.5%.

Pickle launched a liquidity mining aggregator to understand its revenue strategy briefly

Judging from its aggregate mining process, it is essentially the same as YFI’s yVault.

Canned cucumbers are gradually introduced

If the first canned cucumber of sCRV runs stably, Pickle’s next canned cucumber will be pJar that leverages short DAI. Like YFI’s yVault, Pickle will gradually introduce more tokens of canned cucumbers, achieving higher returns through an aggregated mining strategy.

Iteration of Canned Cucumber and Pickle

For the new project of DeFi mining, the biggest problem it faces is the “mining, selling and lifting” of mining participants, which is inevitable. This will cause the project’s own tokens to face a lot of selling pressure. If its tokens cannot maintain a relatively stable value, it will be difficult for the entire project to continue.

Although “canned cucumber” (pJars) is a copy of YFI’s yVAULT model, it can also be seen that the Pickle project is trying to promote the development of Pickle through various product combinations and help PICKLE capture more value to cope with the sustainability after the subsequent reduction in rewards. problem.

Finally, the risk warning needs to be particularly emphasized: Pickle is an experimental new product, the code has not been audited, there are potential real risks, and users may lose their principal. Therefore, we must control risks and do not invest funds that cannot afford to lose.

Source link: mp.weixin.qq.com