[ABIP-19] - LP Pools on Timeless Finance

Summary As a follow on to the roadmap we posted on mirror. The team is proposing all rebasing be stopped on the polygon app and moved to yield farming and single sided ABI auto farming. This stop all inflation on ABI and replaces it with LIT rewards paid by Timeless Finance. This vote also approved the treasury to bribe and buy votes to ensure the yields remain higher than current rebasing.

Motivation

During the last year, we have seen all rebasing projects move away from this approach as token prices plummeted below their backing. ABI is no different. Before any method of redemption against backing or anything else is introduced, its important that current staking be turned off in its current form. This will mean the rebasing rewards will tend to 0 over a period of 4 weeks and will be replaced by rewards paid via the LP pools.

Method

In the proposal the team will be carrying out the following functions: Turn rebasing off on app.abachi.io. This does not affect any staked sABI or gABI, those can remain staked for now, but rewards will gradually trend to 0 over 4 weeks.

Acquire enough votes via purchasing veLIT with a maximum limit of $20,000 to ensure yields on our LP farms are always high. veLIT also allows us to share revenue from Timeless finance, which is currently yielding 50% APY paid out in ETH + BAL.

Approve bribing for Abachi pools up to a maximum limit of $1500 per month to increase the yields in our pools. This will only be used by the team during epochs where APY falls significantly. As a metric, current bribes can be seen on hidden hand (redacted cartel) and 1500 would be one of the top bribes currently (timeless is still growing).

Start work on an auto-compounder pool, where users can stake ABI-WETH for a fixed yield paid each epoch (week) in ETH. Much like GMX. The auto-compounder will charge a small fee for the compounding, and pair the users ABI-ETH into the timeless pool for yield. A portion of the auto-compound fee will be added back into the ABI-WETH pool as additional liquidity.

Start work on an auto-compounder pool where users can stake just ABI and the treasury will pair it with ETH to earn yields in Timeless Finance. This way the user assume no IL and the rewards will be paid out in ETH. A portion of these auto compound fees will be used to buy back ABI.

Conclusion & Final thoughts

The proposal is a big win for ABI if we can score enough votes and maintain yields and this strategy has worked wonderfully well for other projects to boost their own LP.

Those who enter and stake earlier and before the compounders launch will benefit the most. As predicted with the current votes we have, the APY on ABI-WETH pool will be 176% starting Friday, and can be boosted a lot more for veLIT holders. This APY when the auto-compunder launches will trickle down to the holders who hold smaller accounts and want to avoid the gas fees in ethereum to farm the yields.