[Weekly Wrap up] What is going on at Float Protocol
- Finalising the Treasury diversification
- Move to Scattershot vote for ETH Pegged yielding assets in Basket
- Splash page is ready to deploy
- Template code released for arbitrage bot
Shakedowns & BUIDL
There’s been a shakedown in the gulf. Those working on the Protocol are no strangers to a (mini) bear. Heads down and time to build. Read on below for an update on what has been going on at Float.
FLOAT has continued to show itself as a less volatile version of ETH. Moreover, it is also showing how one can protect against downside in the current market situation.
For instance, while FLOAT tracks the value of its “Basket” due to excess demand we’ve managed to prevent several reductions in target price.
The number of BANKsters and long term believers in the Protocol continue to grow day by day. BANKsters are so important to the Protocol over the long term. There has been a movement to support BANK on the Forum via the introduction of a bonding mechanism. This could include giving BANK-ETH LP tokens to the Protocol in exchange for FLOAT vested over some period (e.g. 8 days). Such implementation could be an efficient way to bootstrap liquidity alongside the BANK-ETH LP tokens providing an extra source of revenue for the Protocol other than the Auctions. This extra revenue could be added to the Basket Factor and thus a Factor of 100% is reached sooner rather than later, leading to BANK burns.
Following on from that, the smart contract for the treasury diversification swap is due to be deployed over the next few days. It is exciting to onboard strategic partners as Float Protocol grows steadily and organically. The interest has been high in participating in the treasury diversification, leading to major oversubscription. At 16,800 tokens, there isn’t enough BANK to go around. There have been great conversations so far on the Forum and we look forward to more engagement and discussion.
As part of our efforts to make FLOAT & BANK easier to understand; our new splash page has been built — just awaiting the final custom icons. This should be deployed in the coming week 🙂. Alongside, the Dutch Auctions have been doing their bit accruing ETH, and some have been having a field day participating as arbitrageurs. To aid those new to botting there is now a bot template on the Float Protocol Github account to those interested in learning more about bots and arbitrage. On the roadmap in terms of automated Protocol interaction include dollar cost averaging into FLOAT. In the meantime discussion is encouraged on the Forum for ideas posted including:
- Utilising the Basket — Flash Loans + Basket Diversification
- Auction Price Buffer Alteration
- Float on Layer 2s
- Supporting BANK (Bonds)
- FLOAT-USD on Uniswap V3
A topic that is starting to garner lots of attention is Utilising the Basket. This could include adding staked ETH to the Basket as a revenue generation method for the Protocol. To make the process swift as possible there has been some development activity on implementing “Bags” for the Basket, which are essentially a blend of yearn vaults / strategies allowing any arbitrary token to be stored as long as it has a clear ETH value. The core team look to put up a vote on ScatterShot to decide the Community’s allocation of different ETH pegged yielding assets in the Basket.