The idea of implementing a LP token named Utez

Ideas
#1

I have posted a proposal " An idea about creating a new farm for uXTZ/XTZ", But as I thought more deeply about it, I found an even better solution, so I will abandon the original idea and re-release a new version of the idea.

1、Cancel the 180-day locking mechanism of the uXTZ Savings pool, stop or reduce the incentives.

2、Create an new uXTZ/XTZ CFMM pool (named pool2)

3、Keep the old uXTZ/XTZ CFMM pool (named pool1) with 180-day locking mechanism farm(70YOU/Day)
The reason for keeping pool 1 is because a lot of useful designs have been implemented on this pool, such as the automatic conversion of fee income and baking rewards into YOU rewards for LPs, while the liquidity of two pools is the same when combined or separated under the effect of aggregators.

4、Transfer the total lending interest originally distributed to the Savings pool to pool 2.

5、Directly return the exchange fee and Baking rewards of XTZ back to pool 2.

6、When deploying the pool 2, make Initial value of 1 LPT equals 1Ctez（or equals 1tez）,named the LPT as Utez similar to SIRS.

7、Add Utez as the collateral of uAssets.

8、Corporation with Templewallet and 3Route, Designing a dedicated Utez buying and selling function for users, replacing the Swap channel

An idea about creating a new farm for uXTZ/XTZ
#2

What would be the consequences of adaptive inflation on this design? (if adaptive inflation is voted)

1 Like
#3

There is no essential impact, the nominal APR will just be reduced. If no Baking rewards in the future, Utez will be similar to USDlpt, the APR mainly from Lending interest distribution and swapping fee income.
Adaptive inflation will make Ctez meaningless, But this is only a secondary role of Utez, its main role is LP token.

A simple math：
Ctez = xtz ＋ Baking rewards
Utez = （xtz ＋ Baking rewards）× 50% ＋（uxtz ＋Lending interest）×50% ＋ swapping fee

After Adaptive inflation implementation：
Ctez = xtz
Utez = xtz × 50% ＋（uxtz ＋Lending interest）×50% ＋ swapping fee

#4

Maybe name the LP token as ytez is better. LOL

#5

Name XTZ LP token as yTEZ
Name BTC LP token as yBTC
Name USD LP token as yUSD

It will be more user-friendly in various subsequent usage scenarios.

#6

Finally, we went with the naming yTEZ.
A little more advice:
When deploying yBTC and yUSD yield pools, it is recommended to keep the old swapping pool, Try not to disturb the liquidity that already exists in these two swapping pools.

#7

It is unfortunate that point #7 has not been implemented, which is something at the promotion area and is also very important.
It is foreseeable that uUSD and uBTC minting engines with yTEZ as collateral, 0.39% minting fee , will bring a huge use case for yTEZ, and make uUSD and uBTC alive again.