Flexibility of ELP-1 & 2 weights will enable us to ensure we incentivize assets which are at high utilization rates and be flexible to market demand for using our platform.
Going to governance vote each time the pool composition weighting of existing assets need to be change is time consuming and puts at risk of changing too slowly. NO new assets will be added without governance.
In addition, we will be able to adjust weighting of the pool when specific market conditions arise to ensure the value of ELP appreciates whilst still remaining a good way to hedge against market volatility.
This proposal will enable the team to make changes to the weighting of ELP assets to ensure fee generation is maximized as well as market volatility is considered when looking at the composition of the pool.
Things that will be adhered to: -ELP-1 will never go below 40% stable coin allocation. -ELP-2 will never go below 35% stable coin allocation. -1 singular NON stable coin related token will never go above 35% max allocation (i.e. BTC, ETH etc).
The team will make changes to the pool where necessary and with consultation with the community when concerns are raised.
The outcome of this proposal if passed would be to maximize fee generation by giving highly utilized assets more weight as well as adjusting the weighting of the pool where necessary to hedge against market volatility.