AMPL Office hours 07/26/23
Update:
(i) SPOT vault UI is live. https://app.spot.cash/vault
(ii) Geyser Q3 Refresh proposal : https://forum.ampleforth.org/t/geyser-refresh-for-q3-2023/688
- How does the vault work?
Brandon : Remember that Spot is backed by AMPL senior tranches. These senior tranches, if left alone, will mature into the underlying AMPL. Rotations are a system that incentivizes people to take out maturing tranches in exchange for newer tranches that mature further out in the future. A fee is payed to those who perform this action. The vault automates this, so anyone can participate passively through a staking mechanism, without having the manage intermediate tranches or pay gas fees per operation. With the current SPOT configuration, rotations happen weekly.
2. What is the yield on the rollover vault?
Brandon : What is the yield on the Rollover Vault? The fee payed to rollover actions is determined by Forth governance right now. Following this proposal (https://forum.ampleforth.org/t/proposal-to-update-spots-fees-and-rollover-rewards/673), it is 1% per year on the assets that are used for rotations.
If there is more AMPL in the vault than is needed for the rotations, that extra capital does not earn fees (because it doesn’t perform direct work). However, the upside is that extra capital can support a higher circulating supply of SPOT, which can lead to more SPOT minting, and thus more fees in the future The rollover reward is payed in the fee token, which is also SPOT. However, as part of the vault’s operation, it will regularly try to maximize the AMPL it has available to perform rollovers, so it will periodically redeem the SPOT for the AMPL underneath.
A good way to think of the vault from a user perspective, is that it has single-sided AMPL staking. You keep all the same exposure to rebases, but you get an extra AMPL rewards for doing the work. So it’s a great way to compound your ownership of the AMPL network. Since there is no AMM involved, there is also no risk for impermanent loss.
When you redeem from the vault, you will receive a mix of all the assets under its management. This may include AMPL, SPOT, and tranches
3. Are rewards enabled right now on RV? Who runs the Dune analytics? Would be useful to calculate the rewards from mint/redeems, and we can propagate that around.
Brandon : That’s a good question, I’m not sure. But it’s a good idea. The current reward activity is not represented well in the application. We’re thinking about ways to expose this better. It would require aggregating over user history. Perhaps DUNE is the best way to get something up quickly.
The amount of SPOT tokens “SPOT” owns represents how many fees its collected from mints/burns, but not yet payed out to rotators.
The vault contract is here: https://etherscan.io/address/0x82a91a0d599a45d8e9af781d67f695d7c72869bd#tokentxns
You can see the history of SPOT transfers, and what it holds, but remember that the vault also redeems SPOT as part of its operation
4. Since spot is now completed will there be marketing and partnerships and when will the mint cap for spot be lifted?
Evan : Re:minting — Completing the rollover vault allows us to be more capital efficient with SPOT minting (large holders can participate in rollovers passively). Noteworthy participants in the vault (and progressively lifting of the mint cap) can certainly signal support for the project and we’ll be ready for that.
5. Did the 2.5% mint and redeem fee not get added?
Brandon : These are already live. However, the rollover reward wasn’t enabled until the Vault UI was widely available. We wanted to ensure there wasn’t any special access ahead of time.
6. Can we talk about how melding will work with borrowing tranches to convert to ampl if i need to borrow 100 A-tranche from the vault to convert my tranches into Ampl, isnt the vault now 100 A tranches short?
Nick : So the vault will meld your tranches with its own, and then pay itself and you out accordingly. If you have 75 Zs, and thus need 25As to meld, and the CDR of the bond is 110% — the vault would meld its 25As with your 75Zs, hold onto its 25 AMPL from the redemption, and pay you the 75 + 10 Ampl (minus a fee for doing so) that your Zs would be valued at.
7. Also question when do rewards get paid out? Is that everytime it rolls over? Or when you unstake?
Brandon : The amount of underlying AMPL ownership from your vault notes increases over time as rollovers happen. So there’s no special “pot” of rewards that are separate from the rollover capital.
8. The 1% fee reward, is that already assigned to RV-note holders? or is it more of a 1 time situation at the end of the year.
Brandon : It gets payed out for ever rotation that happens, which is weekly. These compount to be 1% at the end of the year.
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Next office hours : August 2nd, 2023.
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