Fourth Zero Governance Meeting

Take a look at these blog posts for some analysis of the potential of the stability pool based on looking at the longer track record of Liquity, the protocol from which Zero was forked:

https://sovryn.com/all-things-sovryn/fishing-for-gains-in-the-zero-stability-pool

https://sovryn.com/all-things-sovryn/fishing-gains-zero-stability-pool

For the first approach, the expected APY would be 50% for 15% utilization in the stability pool.

For the second approach, the expected APY would be 55% for 15% utilization in the stability pool.

An APY based on Zero’s actual history would be extremely variable and very unreliable. The APY varies dramatically from year to year based on the second article above modeling Liquity’s behavior.

SuperHODL article by SovereignOrigin:

https://sovryn.com/all-things-sovryn/putting-the-super-in-hodl-with-zero-superhodl

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Thank you for the links, the stability pool is a difficult concept for most users to grasp and wrap their minds around it. If they knew how it works and how much they stand to gain I would imagine it could become on of DLLR’s most lucrative use cases.

I’m certainly re thinking how to communicate this on my content, thank you for the links, I will read them and use them when communicating

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I would love to adjust my loan and get more ZUSD to add to the stability pool, but NOT with an origination fee of 5%. The origination fee has to become lower again for this to happen.

For what I understand this is intentional, the idea is to get users to acquire DLLR from the AMM to participate in the stability pool at this stage. So as to absorb demand instead of generating more DLLR.

Once the issuance vs demand gets more even, then the origination fee can come down and people will be more open to create more DLLR for the stability pool

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This is correct. People can think of the stability pool as an improved DCA in many ways.

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Yago, would it be a good idea to add a way for people to quickly deposit funds in the stability pool under the “earn” tab in the alpha.sovryn.app page?
Right now, only those who go to the Zero dashboard can use it, and if we also want to encourage people to aquire DLLR from the AMM pool and deposit in the Stability pool. It could be a good idea to have it all in the same site.

Not sure if it is technically feasible, but could we add the ability for users to deposit any asset and in one transaction those assets are sold in the AMM for DLLR, converted into ZUSD and deposited in the stability pool?

Not sure how much work that would take and how many new funds it would actually attract. But could be something worth considering at some stage, specially once SOV incentives are in place.

Stay Sovryn!

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So what we are saying is that I actually can’t borrow on my BTC right now (because I won’t pay the 5% origination fee), so to add DLLR to the stability pool, I have to either: 1) Buy DLLR with BTC, 2) Deposit stablecoins and buy DLLR and add to the stability pool. Since I’m all in on BTC and don’t hold fiat, this makes the stability pool out of reach for me without Zero, because I’m definitely not selling my BTC to HODL DLLR. So who are we talking to here, who are we are trying to create appeal for? And how is this even promoted on the platform? Are we just hoping this will happen, that people will provide liquidity to the stability pool?

@smarkus - most people are not like you. The majority of people hold dollars or other fiat. Further, there are many people who hold stablecoins and seek yield opportunities.

Or you could use alpha borrowing until zero “origination fee” reaches parody or goes below alpha interest rate. (Currently 4%)

It seems zero interest rate, or “origination fee” was purposely increased to reduce use, so your hesitation to use it is by design.

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