To avoid people claiming quick rebases then unstaking their MEMO, my suggestion is to have a lock up period (from few days to a week) of rebases earned, before it could be drawn out.
This will also encourage a long term commitment to the project and stabilise the price.
Thoughts?
I like the idea, but how much do you want to have locked up? Personally, I want to use $TIME eventually for monthly allowances, so I don’t want to be locked out after a rebase? They have three times a day every day too.
have a look at galaxy goggle they do this - staking rewards are locked in a “warmup pool” for 2 rebases - after those 2 rebases then you can claim the staking rewards
I personally was first interested in cryptocurrencies because I do not like people telling me what to do with my money.
After years in the space, this sentiment has not changed, and I sure hope wonderland won’t let me down with actions like the one you are proposing.
While I understand your genuine motivation for a lockdown period, every person should be able to always withdraw whatever sum of their money they want, when they want.
it’s not many people getting in an out before and after rebases, and if more start doing so, the game isn’t profitable for anyone anymore, because the price will start dumping and you don’t want to take your profits into a low price per time. Also, if it becomes a known and repeated fact that after every rebase the price will go down because of massive sells, it won’t be long enough before people notice and start buying those juicy dips that profit takers will present to them
We can lock or reward longer stacker. I had an idea of gradually increasing APY as reward for longer stacker. Could be taken the form of a game rank. something like rank 1 novice: 0 day to 30 days 40 000% APY, rank 2 squire 30 days to 90 days 50 000%, rank 3 knight 90 days to 180 days 60 000% then rank 4 knight more than 180 days 70 000%.
Then this would push people think a little bit before dumping their coin as they would loose their rank/APY.
This is just an idea though, this need to be think around, but could add some mini game like that to the thing.
@Firebee
I think the idea is more to lock new funds recently staked / claimed amounts. At least this would prevent bots and whales from buying right before rebase and dump right after it.
Funds of long term hodlers would remain free to unstake.
@Firebee made a good point.
Also I don’t like nether to impose any type of restriction. I’d like to see something to incentive people to hold more than take advantage to trade time token.
There is no reason to lock anything. People who try to stake and unstake for profit are usually rekt by slippage fees and price action. Which goes into the treasury making us more money. You would have to be the first one in and out to gain any sort of money.
Well if we want to treat it as an allowance/wage, then would it be reasonable to have a rebase lockup period after 1 week, to treat it like a weekly pay check?
1 Week seems like a good amount of time to stake and, if you are just for the little rebases, get your “profit”
The action of “rebase-hopping” between protocols is one that was inherent and possible from the start. It certainly comes with major risks for the hopper. Realistically, when someone hops to claim a quick rebase, they’re usually paying around $1 in gas (these days), they’re getting in at an extremely volatile price point, <10 minutes before/after rebase, and they truly don’t know if when they get out, they’ll come out with the same dollar value.
This means there’s a lot of factors to come into play when someone decides if they should be rebase hopping between protocol to protocol, to protocol, and so on, and so on. Ideally, you want the size of the rebase to at least cover gas, otherwise you’re just flat out losing money. Further, you want to ensure that the rebase value is greater than the slippage of your move(s), and we’re talking about a standard 1% slippage x2 for the entry and exit. That’s just the liquidity of the transactions. An additional factor beyond that is price action, and looking at what the most competitive price on different exchanges are, and if they can support your movement.
If at any point, someone is front-run by the market while doing this, and the price goes down in a deviation greater than 0.6%, the profitability of rebase-hopping is wiped out entirely, and they lose money.
If the position they hopped in with is great enough to withstand that kind of movement, and we say they just wait it out until the price action solidifies them enough gains to leave – by that point, the protocol has already likely used their money enough to generate a sustainable yield for their departure.
Remember, the protocol owns a large stake in it’s own liquidity, and “bag-droppers” pay us a hefty fine to leave. Rebase-hopping seems like the easiest thing in the world to do and be profitable until you try to model it mathematically.
As my point stands, I don’t personally think the rebase-hopping that people do is harmful. It’s simply a by-product that generates volatility because of … well, basically, people thinking they can beat the system. One might think they’re beating the system because “number go up,” but we’re the ones profiting off of their movement in/out, using their funds to reallocate sizably and immediately generate funds from their dollars, and they start to get rekt every step of the way if they’re not treading very, very carefully.
Use HEX if you want lockups.
You shouldn’t FORCE long term commitment. Especially for something where there is no formal long term plan. The entire point of the rebase period is to be awarded those rebases for the risk we are being exposed to by holding TIME.
People buying/selling around rebase really has no impact on you. We know this because a) the run up and dump in price around rebase is usually pretty small and most of the time the price recovers b) the apy doesn’t change signaling that the people doing this aren’t stealing anything out of your pocket as a long time holder. We’ve had the same rebase for months now, and you see how much the price went up
There aren’t many wallets doing this because it’s simply not worth it for 0.6%. Think about the time it takes to buy TIME, stake it, rebase, unstake, and sell TIME for stable. The price of TIME could easily fall more than 0.6% from beginning to end. And then there are the fees for all those transactions.
I personally dont like the idea. Hopping is benefiting the protocol. And i dont like the idea of money being locked in crypto. I started doing crypto because i have power of my own money
To everybody disregarding this idea, I’ll just try to clarify what the author of the post meant with “lock-up period of rebases earned”.
I see the major complaint is about the fact that the stockholder should be able to do whatever he wants to with its funds, included withdrawing immediately after having staked them.
Well, guys, I reckon the author was talking about a lock-up period for the rewards:
If you stake 1000 TIME right before a rebase happens, then a few seconds later you would have 1006.14 TIME (at current APY). If you were able to immediately sell everything, this would basically imply an “arbitrage” opportunity, i.e. a riskless profit, given that the transactions are made quickly enough that the price remained stable in those few seconds (a whale’s bot could do this, for example).
The whole idea behind the lock-up period is for the rewards, and the REWARDS ONLY, not to be claimable for a given period of time.
This means that the rebase exploiter/arbitrageur would only be able to withdraw its initial investment during the lock-up period, i.e. 1000 TIME (rather than 1006.14 TIME).
If he were to unstake before the end of the lock-up period, he would end up losing its rewards.
Otherwise, if he keeps his fund staked, they would simply continue to compound at the spot APY.
Suppose a lock-up period of 6 days (= 18 rebases). Suppose you invest 1000 TIME.
After 5 days (I chose 5 days just for conveniency, since we’re given the 5d ROI), you would have 1096.18 TIME at the current APY.
Yet you would only be able to withdraw 1000 TIME, and if you were to do it, you would lose the remaining 96.18 TIME. However, if you keep staking 1 day more, you’ll get 1116.495866.
Now, since the lock-up period ended, you are able to withdraw all your balance of 1116.495866.
Only rewards would be locked-up. You will always be able to withdraw your initial investment in TIME, no matter the lock-up period.
However, such a mechanism would prevent exploits of the rebase system by arbitrageurs, and would discourage short-term traders, so that mostly long-term investors will jump into the project (3,3 being the most beneficial strategy for the protocol, maybe along with 4,4 i.e. minting and staking bonds proceeds).
The lock-up period does not intend to impose to investors any type of restriction on their capital, but on their eligibility to rewards, and still this would be a short-term restriction that would likely benefit every holder.
[Current APY, as of December 12th 2021, has been used for computations in the example. The lenght of the lock-up period in the example is completely fictional and chosen purely for computational conveniency]
Yes we know. You are asking investors to lock their money up with no guarantee and no rebase to compensate for the risk they are taken.
That’s like minting without getting the discount. You completely cut out any incentive for people to get in and ask them to take on all the risk.
You are going to scare people away. I think there’s a misunderstanding of the point of rebase. It’s to award people for taking the risk of investing
Rebase trading is not an issue as I and others have mentioned
I actually think that’s a good idea.
This is actually a good and beneficial idea, but this Progressive rewards to avoid rebase trading seems to be a more patient way of preventing rebase sales!
I think an unforced option would be nice. A lower APY for those who don’t want to lock-in and a progressively higher APY depending on how long you stake. Those who don’t want to be locked in don’t have to. Those with a long term horizon could be rewarded. Incentivize the behaviors we want.