Upcoming Quarterly Rebalancing and Distribution

#1

In this blog post, the goal of the Uber Pool was outlined. On a quarterly basis the bottom 10% of the Uber Pool (on a Score basis) is liquidated and the proceeds are reinvested into dTOP. A portion of the proceeds can also be paid as rewards to stakers.

Ahead of the last vote, it was proposed and voted on that instead of distributing sUSD, dTOP was to be distributed.

There is currently a community proposal to distribute part in sUSD instead of all in dTOP.

For this quarterly vote, I think we should include a third option, namely DHT. DHT could be bought from the market through a buyback and distributed to stakers, similar to how Sushi distributes rewards. Personally I believe both dTOP and DHT align stronger with the dHEDGE protocol than sUSD does. Stakers are in either case free to liquidate any dTOP or DHT rewards into sUSD should they wish to.

Finally, talking about how much of the rebalancing (10%) should be distributed (ie 0%, 25% or 50%) can be confusing. I propose we instead vote on how much of the Uber Pool should be distributed, 0%, 2.5% or 5%.

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A proposal for Performance Mining V2
#2

Following this vote most possibly outweighs in favor of DHT at the time of this thread, I propose to discuss mechanisms for the buyback of DHT tokens from the market. Because the principles on which DHEDGE is built are in disagreement with centralized services, it would be logical to immediately exclude buybacks from those services to avoid speculation on rates and volumes. This month’s distribution is likely to be based on 5% results, and the dollar amount for such a buyback from DEX is possible with a slight slippage. I propose to implement it on the aggregator service 1INCH or DEX with sufficient liquidity. The transaction should be made available to the community participants in the public view of TX.

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#3

I think this is thoughtful approach. Using the quarterly liquidation capital to engage in a buy back on the open market DEXes is a great DAO native approach. I support this.

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#4

I think most DHT liquidity is on DEXes anyway.

On mainnet, Uniswap is the only source in 1inch, liquidity of 3M for that pair. There’s also liquidity in Sushi on Polygon, 1M for that pair.

It’s probably best just to use Ethereum mainnet for now. Uniswap, or 1inch.

As far as slippage goes. 5% liquidation of the current uberpool goes to about 100k USD. In Uniswap, that would lead to around 3% slippage on USDC pair if done in a single trade. For sUSD, slippage goes up to almost 5%.

One way to reduce the overall slippage may be Time-weighted average price (TWAP). Time-Weighted Average Price (TWAP) | River Financial

I think we can keep it simple. 10k produces a slippage of only 0.6% on Uniswap. 20k increases slippage to 0.9%. That’s USDC. We’ll probably trade into sUSD from the uberpool assets.

For sUSD to DHT on Uniswap, slippage for even a $5k trade is around 2% slippage. It may be best to trade sUSD to USDC on Curve. Curve has enough liquidity for ~100k in a single trade and not much slippage. Currently 100k sUSD returns 101k in USDC on Curve.

Then TWAP on Uniswap using USDC. Maybe a $10k trade every 5 minutes.

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#5

I definitely second these thoughts on routing and slippage. Additionally I would consider placing the orders with flashbots. Even at 10k TWAP the purchases could trigger front running bots. if we make a habit of scheduling large transactions, we should be protecting against MEV.

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#6
  1. Continuously and Instantly rewards
  2. Autonomous buyback DHT for growing interest from investors

I agree with this option, but if we start from the fact that we are working towards decentralization and autonomy of the project, we should begin before the next quarter to develop a system of automatic distribution of quarterly rewards. One option could be voting, in which we, e.g., fix 5% as a constant and only rarely change it if required by UberPool. Thus, the possibility of integrating it into the current Smart contract will be easier. We can also take a ready-made solution in Gnosis Safe with an automatic exchange function with conversion to a native DHT token. If we take a quarter as a value with 90 days, we can calculate the constant by the formula 5/90, where 5 is the percentage distributed to participants and 90 is a constant, the number of days in a quarter. Based on this option, we have a smooth model of buybacks of tokens from the turnover on the exchange and, as a result, minimize the risks of rate manipulation.

So, for example, with daily 0.055% (5% of Quarterly or 20% per year ) and with Balance (2M Uber Pool), we will have 1100 USD buyback of DHT every day.

I want to note that DHT’s monetary policy on their emissions is very susceptible to inflation at the moment. The value of the token depends on the profits that UberPool generates. To stabilize the price, I also suggest equal distribution of rewards without big spikes in inflation ( weekly, monthly, quarterly payouts). I am just slightly familiar with the Smart Contract code, and I still have to understand the project’s roadmap, but I can already see some points for discussion with the community. My suggestions are formed from the public information available to me.

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#7

Screenshot from 2021-07-03 12-24-13

I pretty much agree on all suggestions. They make absolute sense. Daily buy backs would be optimal!
We could just use from the get go both DEXs, uniswapV3 (ethereum) & sushiswap(polygon) using only 1INCH that support BOTH Networks POLYGON & ETHEREUM !!! Just making 30% buybacks from 1INCH polygon and 70% from 1INCH ethereum for example since liquidity is higher on ethereum. Or just choose another ratio like 80/20 or whatever after maybe we vote for it. But it could be also automated and be the real liquidity ratio between polygon and ethereum…

#8

I fully agree and it would support the underlying dht-token for this project, linking it directly to the success/usage of this project.

#9

I’m in agreement with this, makes sense to use an aggregator like 1inch for this and also transparency

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