The proposal is to activate a partial redeem option for beFTM for the delegated FTM. The suggestion is to have, with a weekly reset, 10% of the TVL of the vault available for redeem with a 7 days unstaking. This would solve 3 keys options:
Not only would the users get the flexibility of redemption, but also would get a free +30% on their FTM portfolio as the pool would be arbed and the peg would be restored
BeFTM is not competitive among delegated FTM products as it does not allow redeem while competitors (in particular Strader FTM) does. Hence, Beefy can not attract new TVL as all the users prefer to use a superior product.
Hence beFTM has been almost completely flat, once adjusted for FTM price decrease and organic compounding.
Opening redeem option would also automatically restore the peg, enabling investors to trust Beefy product again and add TVL
We also believe that while we could originally argue that the peg would restore automatically over time as beFTM are purchased automatically with the validator reward earned, the decrease of FTM validator rewards by 50% makes this mechanism much less powerful today, hence it is hard to believe that we have any other solution in sight as the depeg is currently only going one way.
In conclusion, while activating the redeem option might take a bit of time for the dev team, we think it would: