Pickled cucumbers
Original title: "Pickled Cucumber Canned"
Original author: Notes of Blue Fox
Pickle launched PickleJars (or "pJars") yesterday. The previous article,"Pickling pickles and mining micro-creativityPVault mentioned in ". Its code is currently unaudited, mostly copied from YFI's yVault, and their contract logic is basically similar.
What is a Pickle cucumber?
PJars is a aggregator for mining, similar to yVault at YFI, whose sole purpose is to get the most out of your users. When a user deposits A liquid pool LP token into a canned cucumber (pJar, also known as token pool), he has a chance to receive more of that token.
The main process is as follows:
* User deposits his LP token (liquidity scriV, e.g. SCRV) into pJar (canned cucumber) and then receives pAsset;
* Assets deposited by users will be deployed in Alpha-Seeking strategy, thus generating profits;
* The proceeds are distributed in the token pool, which means pAsset appreciates.
In addition, in the operation process, also can incur expense. This portion of the cost is allocated to the governance and PICKLE holders.
Pickled cucumbers allow for an income from harvesting costs. Its fee structure is similar to yVault, with overhead and exit fees, both of which are 0.5%.
The main differences are:
*3% of the fees are allocated to governance to subsidize gas fees, while yVault costs 5%
*0.5% of the cost is allocated to the function caller as a reward for triggering the policy
*1.5% of the cost is spent on buybacks and the destruction of pickles
However, the PICKLE community has made a new proposal for the buyback and destruction of pickled tokens: it has been proposed that the fee proceeds be distributed directly to users who provide liquidity to the ETH/PICKLE pool.
The strategy for pickling canned cucumbers
The first Pickle jar was sCRV's pJar. This is Pickle's test for the pJar. Users can get more sCRV tokens if they save sCRV.
Where does the revenue come from?
Proceeds from sCRV scrip mining, and through these mining proceeds to buy more stability COINS, to dig more sCRV.
The specific process is as follows:
* First, the user saved the stability coin into sUSDv2 pool of Curve, and then obtained the LP token of sCRV;
* SAVE sCRV into pJar, psCRV token can be obtained;
* Sell the CRV and SNX tokens you get and buy the stable currency with the least liquidity to get a higher yield;
* Save stability coin into sUSDv2 pool of Curve to get more sCRV;
* Deposit the sCRV token obtained into pJar;
* Repeat the above process.
Based on current earnings, its APY is 40.5%.
In terms of its aggregate mining process, it is essentially the same as yVault of YFI.
Canned cucumber gradually rolled out
If the first sCRV cucumber can runs stably, the next Pickle will be a pJar of leverage shorting DAI. Like YFI's yVault, Pickle will gradually roll out more token cucumber tins, achieving higher yields through a strategy of aggresive mining.
Iteration of canned cucumber with Pickle
The biggest problem facing DeFi mining's nascent project is the inevitable "dig and sell" of the mining participants. This will result in a lot of selling pressure on the project's own tokens. If its tokens cannot maintain a relatively stable value, the whole project will be difficult to sustain.
While pJars is a copy of YFI's yVAULT model, it's also clear that Pickle projects attempt to drive pickling through a variety of product combinations, helping pickling capture more value in response to the sustainability challenge of lower rewards later on.
Finally, there is a risk caveat: Pickle is an experimental new product, the code is unaudited, and there is a real potential risk that the user could lose principal. Therefore, you must control the risk and do not invest money that you cannot afford to lose.
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