This would have a few benefits for tinygovs:
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Earning additional yeild for the platform.
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Encouraging borrowing on Folks Finance (and later Dorkfi).
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Deepening Tinyman’s impact and strengthening our connections within Algroand’s Defi
This is a low-risk / high-reward potential for Tinyman, depositing Tiny into Folks Finance immediately earns us yeild, and we as govs have control over said funds. Currently Folks has $19.7k worth of Tiny deposited, earning a return of 16.40%
In the best-case scenario (imo) as we build our deposits in Folks Finance more users will take advantage of the lower-cost Tiny loans and borrow it to use earning additional yeild on our platform via tiny-LP pairings, example: Tiny/talgo LP offers a 10.51% return +2.19% via talgo, tiny/usdc offers a 27.40% return. Either-way over the long-term we are earning a modest yeild on assets we’d otherwise earn exactly 0% on.
Deposits into Folks will also secure Tinyman a stake in future Folks airdrops, tokens we can add to our own LPs like Tiny/Folks and farm to build up liquidity in these assets (or borrow against in the future). Overtime the compounding could drive large amounts of tiny from the market into the LP (particularly should the paired asset rise in value).
We could also vote to lock some earned tiny into a Gov vault ourselves that we control and add that extra voting power to tiny LPs to boost rewards to those pairings every cycle. Ensuring a minimum farm amount behind key tiny-LPs regardless of how voting shakes out, it would be akin to boosting the minimum amount of rewards some of our LP’s already get every cycle.
We could dedicate those earnings towards future developments on Tinyman (Me personally I have a pending proposal on modifying how our governance proposal approval process works: Improvements to our Goverance System an xGov Pilot program - #6 by NerdyForDesign) that if some of those measures got approved would need a decent amount of work to implement that would not exactly be cost-effective for the team, but if in the future any of them were passed (say a proposal to allow tiny-LP pairings voting rights Enhancing Tinyman Governance Model - LP edition) it would be nice to have funds at the ready to implement them. (of note you should go vote on those proposals while you are here, please
).
All of those are just thoughts on my part of course. I am not a member of the team, just musing on things that could be beneficial long-term for us as a community.
@gidenoah also while I have your attention there is little we as stakeholders can do individually against the greater ecconomic headwinds that trickle down to us in the defi sector. However there is enough of us as govs that working together we can have powerful impacts on the platform by pooling our individual power as govs together.
This was the original proposal we discussed on discord before modification into the one being voted on and I offered a slight summery for the proposal.
Also find us on the discord here:
https://discord.gg/sFDYV3Yej We’ve been discussing this vote for sometime in the discord. Be apart of the process. We’re significantly more active over on discord than here.