[Proposal] New Strategy to farm AMPL

Proposals Vaults
#1

Summary

Create a new strategy (or vault) to farm AMPL where one would deposit Uniswap & Mooniswap LP tokens (ETH-AMPL, BZRX-AMPL, BAL-AMPL, etc.) to receive AMPL tokens.

Current Geysers & rates:

Abstract

This proposal would expand upon Yearn’s yield generating abilities by offering a variety of new assets to earn yield on while diversifying Yearn’s portfolio of strategies. This would also reduce the reliance of Yearn on Curve.

Motivation

Ampleforth offers serious yield (>30%) for farmers, and a legitimate avenue for profitability while creating more options for users. This strategy would also implement a new (semi) stablecoin to diversify from specifically dollar pegged tokens.

Specification

  1. Create a new strategy, or a new vault if necessary that would farm AMPL
  1. AMPL is sold for the base asset(s) in the strategy/vault. (Community could decide to implement keep or liquidate option separately.)
  2. Depositors have claim over the excess profits.

Details on how the Geyser works:

For:
Proceed as proposed above
Against:
Do not offer AMPL as a farming option
Poll:
I do not know how to create a poll

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#2

So my biggest concern with this…is it possible to claim AMPL rewards without withdrawing from the geyser? Also, from what I remember you earn more AMPL the longer you have it locked up, so if you needed to withdraw to harvest, it probably would be worse returns than just staking on your own.

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#3

If withdrawal is required it also messes up the compounding effect found in most vaults.

But I don’t know much about ampl. But 30 percent seems worth a look. Maybe a larger vault withdraw buffer might be needed to keep the AMPL boosted

Can you do partial withdraws of LP tokens? If so, how does this effect the AMPL rewards

#4

Yeah based on chatting with a few people in the Ampleforth telegram it seems that any withdrawal will reset your boost; you can’t just withdraw the accrued AMPL.

So without the boost, the APY is only 10%—so not terrible, but again, compounding 10% is a much worse yield than just leaving your AMPL in there for 30% yield (3x boosted)

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#5

What about further deposits. How are they handled. Reset. Added or a new geyser

#6

You can do a partial withdraw of LP tokens

#7

The boost is based on when you deposited each deposit of LP tokens, so you can withdraw a portion and leave a portion. The bonus is on a FIFO basis.

#8

so you can partially withdraw the LP tokens, but not the accrued bonus AMPL? Or can you withdraw only the bonus AMPL?

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#9

When you withdraw LP tokens you also claim whatever AMPL rewards are associated with those LP tokens which is based on when you deposited them & what reward multiplier you reached by the time of withdrawal.

#10

This sounds better than first expected. But it still lacks compounding rewards. Without compounding, people are better off just making their own LPs straight on AMPL

Perhaps there is a mathematically ideal place to pull all the LP harvest all the rewards, swap for more LPs and reset.

The “shortcoming” would need to be explicit. Say a warning that early withdrawing will result in substantially less gains.

Also without the harvest the apy is going to appear very low as the vault will never be growing in LPs.disregarding new deposits

#11

What if they were “safes” instead of vaults…
A “safe” being something like a set time and/or amount with the foreknowledge of being locked in and either an option to then remove or continue (which would compound)… {New guy here so if this is already an explorer idea, my apologies} :man_shrugging:

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#12