@brisket I think this is the right approach - the middle ground so to speak. I sketched something similar here Proposal 0: YFI Supply
- Variable weekly issuance.
- Targeting is based on yield set relative to the yield available in the rest of the ecosystem (opportunity cost of capital).
- Issuance is function of target yield, previous week’s VWAP price, weighted TVL.
Impact:
- Reduces wasteful switching activity between protocols (which also reduces network congestion).
- Reduces wasteful incentive provision.