- Do away with CLAIM/DAI LP, and only focus on NOCLAIM/DAI LP.
- Users buy CLAIM buy minting CLAIM/NOCLAIM, and selling NOCLAIM.
- MMs mints CLAIM/NOCLAIM, provides NOCLAIM/DAI liquidity, and actively manages the NOCLAIM price.
- When price of NOCLAIM is too high, there is no demand for CLAIM, so MM will be stuck with CLAIM inventory - ensures MMs need to know when the price/risk is right when pricing in farming risk.
- When price of NOCLAIM is too low - too many people minting to dump so they can get claim - farmers can choose to use their existing CLAIM to arb NOCLAIM back to their entry price - this increases fee to protocol.
- Previous incentivisation for CLAIM/DAI LP distorted the price of CLAIM.
- Currently the incentives for the Balancer Pool are lowered to 5/75, which reduces the incentives to provide CLAIM liquidity.
- This is the logical extension of the change in weightage, and concentrates all rewards into the single pool.
- Currently, due to reducing rewards and high potential losses (CLAIM trends to 0 after all), most farmers prefer to only farm the NOCLAIM/DAI side due to a) high rewards and b) low IL (98/2)
- Reduce market making complexity - only one pool to manage
- Increase in-protocol fees by capturing CLAIM/NOCLAIM arbitrage value
- Users benefit from improved CLAIM purchase liquidity and reduced slippage
- Remove CLAIM/LP pool incentives
- Develop smart contract that uses a flash loan from dy/dx (free) to a) Mint CLAIM/NO-CLAIM, b) Sell NO-CLAIM, c) Payoff dy/dx loan
- Increase NO-CLAIM ratio (currently 98/2) to 80/20 to reduce slippage. MMs are already protected since they hold excess CLAIM, and slippage in a NOCLAIM situation is minimal (e.g. 90c -> 99.9c).
- Remove CLAIM/LP pool incentives completely.
- Restructure CLAIM purchase as a smart contract function to a) Flash loan b) Mint Claim/No-Claim c) Sell No-CLAIM d) Pay off flash loan.
- Maintain CLAIM/LP and NOCLAIM/LP pools and incentives.