RE: Discussing DeFi Strategy

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What is the estimated magnitude of effect? IE what range of yield are these pools estimated to generate?

The concept sounds interesting, but it's challenging to gauge the value of the fees.
The immediate challenge that occurs to me is that if the pools turn out to generate substantially more yield than the rewarded pools currently displayed in the Splinterlands interface, wouldn't more liquidity naturally gravitate to those pools?

It still may be a good idea for some period of time.

What is the estimated cost to the DAO in terms of token, time, and effort to establish the pools?

spsdao
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Without trying it, it's really hard to say as there are many factors that come into play:

  • what fee will these pools have? If they're all 1% fee positions, then you need significant volatility to route through 2 of them and still come out the most efficient route. If they're lower, like say .05 or .25, then it's much easier to attract triangulated volume.
  • what tokens are we paired with and what volume do they have? If a token is doing 100m a day in a volume and we can capture 1% of that, then it's a million, if we can capture .1% then it's 100k. Without strategic setup and targeting specific pairs, it's hard to say.
  • If the DAO is putting up the tokens, it's less flexible than regular traders. Someone strictly controlling their own funds can change pairs on the fly and adjust the parameters of their positions where as the DAO couldn't.

Long story short, we'd have to find out.

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