Idea summary: Many Ampl buyers fail to manage the asset well, by not taking profits during positive rebase and buying more of network share during negative rebase. This is partly because many do not want to manage their position actively, do not have good trading skills or just want to passively hold the asset.
Some Ampl holders could benefit from an automated strategy that sells a pre-determined percentage (5%, 10%, 15%) of their Ampl holdings during positive rebase cycles into a stablecoin (Dai, USDC, etc.), this would function like an automated savings account, or negative rebase “insurance fund”. During negative rebase cycles all or a portion of this reserve could be used to buy Ampl.
If the negative rebase insurance fund became large enough it would create sell pressure during positive cycles, and buy pressure during negative cycles, helping to stabilize the protocol
Idea implementation/execution: This strategy is similar to TokenSets (https://www.tokensets.com/) an automated asset management platform. TokenSets is a “smart basket ERC20 token of crypto assets that automatically rebalances based on the strategy you choose.” The major tasks would be to develop one or more smart contracts that allow for automated buying and selling of Ampl at user-set intervals or at certain points.
Budget/cost: Budget unknown. Major expenses would include:
– Smart contract development and testing
– Smart contract audits
– Website design and development
Examples of similar ideas: The insurance product would be similar to TokenSets, mentioned above.
Idea timeline: About 1-2 months
I believe creating a TokenSet would be interesting, especially if we tie it to a WVAP measurement along side RSI(?). Coupling $AMPL with assets such as aETH or price-discoverable assets could offer $AMPL the ability of being a foundational, base token in the respective basket.
Another idea, would be to create a balancer pool. Of course it would lean towards a higher AMPL weight, but implementing interest-bearing assets as an extra incentive may intrigue more participants.
If it’s an internally built mechanism you’re looking for, maybe this:
As participants deposit his/her Uniswap v2 / Mooniswap tokens to the Geyser, a representative Geyser token will be minted.
Upon so, the participant can deposit this into a pooled like mechanism in the DAO. Assuming the Ampleforth team + bootstrapped funds are available, it would add a liquidity mining factor similar to that of the Geyser. In essence, participants are either earning AMPL rewards, or the DAO can create their own governance token.
The only issue I see with this is that it’s comparable to some liquidity mining projects we see today.