| id | Title | Status | Author | Description | Discussions to | Created |
|---|---|---|---|---|---|---|
| TIP-50 | Utilize Safe Box | Draft | Danijel | Use the sUSD from SafeBox as part of tokenomics | https://discord.gg/rPpPcMXSeU | 2022-05-12 |
This TIP proposes to commence leveraging sUSD accrued in SafeBox as part of THALES token tokenomics
Use sUSD from SafeBox to buyback and burn THALES
While SafeBox is still not at significant levels, it did 2x in a matter of couple of weeks and is holding approximately 22k sUSD (18k Optimism and 4k Polygon).
With Thales releasing more products very soon (Ranged markets, Sport markets), and OP tokens distribution incentivizing protocol volume, it is expected SafeBox to receive further fees.
This proposal however is more about establishing the infrastructure for potential buyback&burn strategy, while the exact rates are to be configured as we monitor the income of sUSD into SafeBox.
Thales AMM on Optimism has made 100k profits since release. Thales Treasury will move 20k of that towards the SafeBox. The rest is still used to provide liquidity.
I am proposing the buyback and burn strategy as I find it more impactful now then distributing the sUSD fees to stakers on weekly basis. At current low THALES price, this could allow a large amount of THALES to be burned, until such a time comes that sUSD fees distributed to THALES stakers can be significant and the protocol should move to seize buyback and burn and instead distribute the fees directly pro rata to stakers.
Establish a rate in which THALES will be bought back using SafeBox contract. There will be a method called "executeBuyback" that will be callable if enough time has passed since last call per defined ratio.
The method will be callable by anyone, but we will have a keeper bot doing it.
I am proposing a low rate to get the framework started and adapting it as we monitor the inflow of sUSD into SafeBox.
Proposed rate is 300 sUSD per 24h.
sUSDPerTick - 300 sUSD
TickLength - 24h
Method executeBuyback can be called if at least 1 TickLength has passed since last buyback.
It then calculates how many ticks passes and executes buyback via uniswap integrated contract.
As burning makes no sense on L2, THALES will accrue in SafeBox contract until ProtocolDAO periodically pulls it, sends it to L1 and executes the Burn.
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