Deposit a portion of liquidation treasury funds into Alpaca lending pools while waiting to be used for buyback
Liquidation treasury can build up to high value after a big market move, such as now. (mostly in stablecoins) sitting in the liquidation treasury. By depositing a portion of them in the lending pools, liquidation treasury can earn roughly $70 per day (using the current APRs for each stablecoin), and increase the TVL of our protocol by almost $1 million.
This proposal does not require any development effort, while providing a small increase in TVL and daily income to grow the liquidation treasury. It will also marginally reduce interest rates especially for low liquidity coins like USDC, which may also encourage more LYF users, further increasing TVL.
This strategy incurs small additional risks vs. just holding the fund. If bad debt occurs in the lending pools, the principle for buyback will be reduced.
This proposal will be a simple YES or NO vote.
YES would start implementing the plan above while NO would keep the fund in the liquidation treasury as is.