(p8) Incentivising JRT Balancer pools

Ave Senate!

As most of you know, we want to strengthen the liquidity of JRT to allow bigger orders to happen. This will reduce its volatility, and will lay down the necessary base for using JRT as collateral (within Synthereum and elsewhere).

While discussing with some of you on Discord, there are two reasons why the community is not contributing to the liquidity:

  1. Risk of IL
  2. Need for another asset (many JRT holders only have JRT).

Following the discussions on discord, we have added an 80/20 JRT-ETH pool (the 90/10 JRT-ETH pool was already existing) and we, as a company, providing liquidity there.

We propose to discuss the incentivization of either pools (both pools or just one) with enough incentives to counter a potential IL. We can also create similar pools (80/20 or 90/10) but with USDC instead.

Here is a table with IL projection (only JRT price is going up in this scenario, ETH prices stays as is):

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I think that everything should be concentrated in one pool.
The difficulty will be to choose between the 90/10 and the 80/20.
90/10 : less impermanent loss and need for another asset smaller but more slippage!
80/20 : more impermanent loss and less slippage but need for another asset greater.
Personally I would favour the 80/20 pool to minimise slippage as the impermanent loss will be offset by incentives but perhaps this will be a problem for those who only own JRT and cannot participate in the pool.
I have no idea what mechanism to put in place to compensate for the impermanent loss. Liquidity providers will arrive at different dates at different prices, how to deal with that ?
I think that we should do everything to ensure that this pool is on version 2 of balancer to be able to hope to have rewards in addition in bal.
Finally, replace the jrt/eth uniswap and sushiswap pools with the balancer pool in the farming program.

Translated with www.DeepL.com/Translator (free version)

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I also prefer the 80/20.

Yet the 90/10 could attract more people.

The 80/20 should be incentivized and the 90/10 should not, but should exist so people can provide liquidy there if they want.

The question is ETH or USDC as a counterparty currency?

If it is ETH, the price of JRT is priced in ETH, and ETH movement impacts us positively and negatively :slight_smile:

definitely eth !
Everyone is bulish on eth in the long-term.
javis products + eth = jrt on the moon
Well the downside will be that it will be harder to use it as collateral but you just have to be careful.
Do we have any examples of USDC indexed defi tokens and does that really protect them from bitcoin and eth movements ?
I’m not sure.

Why not a pool or even 2 pool uni v3 a bit like pool inst.? With 2 ranges. You also have to define the range. We concentrate the liquidity.Or we must be able to remain active to be able to adjust the range of the pool. So we will need less funds

I think both pools should be incentivized, otherwise there is no need for the 90/10, or maybe we can do a unique pool 85-15 incentivized ?
ETH is better than USDC for the liquidity I guess

that’s exactly why, I do not think it’s a good thing for me :slight_smile:

  1. Risk of IL
  2. Need for another asset (many JRT holders only have JRT).

I personally prefer JRT-USDC because I do not believe it is the right time to be exposed to ETH. The market is going down, which could only be the beginning of a slow and painful market bleed.

Being in the JRT-ETH pool means that as new people buy more JRTs from the pool, the LPs accumulate an ETH on the way down. It’s too early to get some ETH back. I’d rather accumulate USDCs and buy the bottom zone.

Anybody who still has ETH right now because they didn’t sell has gotten rekt from the ATH top at 4k+.
Their ETH stack is losing purchasing power every day, and now they would need to take an even riskier bet with JRT (from their point of view, as a newcomer) as the token is more volatile. That seems unlikely to me.

On the contrary, a person who mostly or exclusively has stablecoins is probably feeling pretty good right now, because their purchasing power is appreciating against dumping altcoins.

That’s how I see it now, but I’m happy to be wrong.

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I believe that we should stay with a 80/20 with Eth as ether get more potentiel to growth in the coming months and have a pool 90/10 on USDC for the conservative investisseur. And incentive pool 80/20 that have the higher IL and capped it to 10% max. and capped to 5% for the 90/10

Oui les MPS sont sur que USDC et leur volatilité est faible par rapport aux 50 à 70% de chutes des crypto. Ils ont eu un pique de 400% environ et redescendu à plus de 70% de leur 400%, mais pour leur début.
Mais, je crois comprendre que toute manière si un achète du ETH avec du JRT ou achète du JRT avec du ETH, le pool USDC va faire JRT à USDC et après à ETH par un autre pool pour l’acheteur. Non ?

Uni v3 has the highest IL ever. Quite the opposite of what we want to do.

P8 may be a wrong choice for Jarvis community.

There is few reason that make me think this proposal need to be paused and review by the community.

The first reason of this pool was to increase the liquity and the stability of JRT token but after research,
i’ve found that 80/20 pool wasn’t good as we expected. That creat a difficulty to JRT to goes up, and increase
the possible dump. Let me explain, in this pool the slipage got a 1/5 ratio.
Exemple : I bought for 5000$ jrt, slipage will be 1%. If i sell 5000$ jrt, slipage will be 5%.

That means it will 5x harder to jrt to goes up than down. That totaly the opposite of what we need.

That pool was choose to target JRT OG(holders) who don’t want to loose single token, but that was conflict with the incoming staking,
and made that possible pool and reward pointless.

To be simple :
1- jrt 80/20 eth , increase the down slipage and decrease the pump slipage.
2- Target the holders and made a conflict between pool and staking
3- Cost precious token who can be use for more useful case

For me , we need to review this proposal and ask the right question,
Did this pool will help the JRT to be more stable ? Against sellers ?
Is relevant to creat/reward this pool just before staking ?

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Let’s concentrate the whole liquidity in ETH network in a 80/20 pool with the incentive of 100% IL. We need only 1 pool on ETH, because we will probably need a 2nd pool on Polygon because it’s mandatory to get some small new investors (this pool should be incentive too for the begin of Polygon launch).