The continued conversations about the implementation of asset management to increase yield to capital suppliers and others are exciting and there continues to be discussion on detailed strategies and deployment.
As part of these discussions @cryptojones suggested that we utilize the yield from asset management to buyback USF before distributing to capital suppliers. This will create additional buy pressure on USF and differs from the current approach.
After some support and additional discussion from some of the community in the discord server, we wanted to start a proposal and get feedback from the community on this idea.
1.) Utilize 100% of the Asset management yield to buy back USF to reward capital suppliers with.
2.) We suggest doing this for a 3 month period and it will be important to track the amounts and impact to determine the move forward plan after that time.
3.) Use the below principles to discourage bad actors from trying to take advantage of this process.
- We could set a maximum amount to spend on buybacks daily. The excess will move to the treasury (account dedicated to buybacks) in ETH or whatever the “native” token is for the pool.
- Small buybacks often (e.g. 2 per day) is better than 1 big buyback weekly as this could be gamed by traders and bots
- Buybacks should happen at random times (again, to reduce predictability)
Please let us know what feedback and questions you have on this proposal and if you support this idea. We will plan to gather additional input and feedback before moving to a vote.