[CDIP-6] – In-house Vault that funnels profits to BAS stakers

[CDIP-6] – In-house Vault that funnels profits to BAS stakers

Authors: @yyctrader, @ZeroWei

Summary We propose to create an in-house Vault that does the following:

• Vault user deposits BAC/DAI LP
• Vault farms BAS
• Vault charges a 18% Profit Fee. These fees in the form of BAS go to BAS stakers
• Remaining BAS is sold for more BAC/DAI LP similar to other farms like Pickle and Harvest.
• Teaser Rate Profit Fee of 10% for the first 2 weeks to gain market share.

Motivation We have observed that the projects auto-compounding BAC/DAI have been extremely profitable since launching their Basis farms. For example, Pickle has collected nearly $108K in fees from their BAC/DAI farm in just 5 days.

Having our own Vault would allow us to capture this value and keep it within the Basis Ecosystem. The income derived would generate a stable income for BAS stakers, regardless of expansion. This should generate additional demand for BAS.

The vault would be owned by Basis, and @ZeroWei will operate and maintain it.

Prior to launch, we also propose to have it vetted by expert(s) in the field.

To aid in marketing efforts, the profit fee will be set to 10% for the first 2 weeks. This will be offset by the staking rewards from the CDF approved through CDIP-5.

Specification @ZeroWei and his team will be paid US$ 20K from the CDF to develop and deploy the Vault as specified above.

• $10K to be paid immediately
• $10K to be streamed using Sablier (or similar) over 60 days.
• 1% strategist fee to commence after the 2 week promo period (5.55% of the 18% Vault fee)
• CDF will reimburse operational costs monthly (gas etc)

In addition, we request a budget of $20K for security vetting and marketing the Vault (Details of these expenditures will be shared in advance once available , situation is fluid)

Total cost to the CDF: US$ 40K

This snapshot vote has been proposed after a successful Discord vote: https://discord.com/channels/784481893482758184/784486816266715176/799014860158795826