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BeefyBeefyby0x4334703B0B74E2045926f82F4158A103fCE1Df4f0x4334…Df4f

Activate partial redeem option for beFTM for the delegated FTM.

Voting ended over 3 years agoSucceeded

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:

  1. For users

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

  1. For Beefy

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.

Screenshot 2022-10-13 at 6.05.29 PM.png

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.

Screenshot 2022-10-13 at 6.04.12 PM.png

In conclusion, while activating the redeem option might take a bit of time for the dev team, we think it would:

  • restore the peg immediately
  • add TVL for Beefy and thus revenues
  • and if anyone cares about it, avoid further bad PR from angry users

Off-Chain Vote

Activate redeem option
10.04 BIFI3.8%
Do not activate redeem option
252.61 BIFI96.2%
Download mobile app to vote

Timeline

Oct 13, 2022Proposal created
Oct 13, 2022Proposal vote started
Oct 16, 2022Proposal vote ended
Oct 26, 2023Proposal updated