Discount programme for long-term holders of vaults

INTRO We connected with the Bond protocol team recently, and their free technology allows switching the incentives in Locus tokens to the 25%-50% discount rate for purchasing a limited amount of Locus tokens. The idea is simple: instead of giving away rewards in Locus tokens for holding vaults, users receive the right to purchase Locus tokens from the treasury with a discount for a specific period of time. Discount is picked by the DAO, other protocols tend to put it between 25% and 50%.

This is a great idea for generating a revenue stream for DAO’s treasury while incentivising the core actions of the protocol. It is also one of the features that allow the protocol to establish the insurance fund. The downside of this technology is that the user who received the discounted Locus will have to sell it right away to collect the premium he received. The current emissions should convert 1 Locus token given as a reward in vaults to 20-50% of USD value to the treasury. Discounted options of Bond protocol will have 50%-75% of USD value returned to the protocol's treasury, which is the better usage of Locus tokens.

Our suggestion for executing this idea is to implement the possibility to purchase Locus with a discount only to 30day+ holders of vaults, which can be suitable for omnichain USD and ETH vaults growth and aligns the interest with the most revenue-generated users.

Bond protocol documentation for a deeper analysis: - Bond Protocol OLM Community Docs --> https://docs.bondprotocol.finance/products/options-liquidity-mining

EXAMPLE OF THE USE-CASE Locus DAO decided to provide 50,000 Locus tokens priced at $2 for the discount programme with a discount of 33%. These tokens are proposed to those who were holding the ETH vault for 30 days and holding at least 10% of their Locus portfolio in Locus tokens. That way we know that those users are those who benefit the protocol the most. The total TVL of the ETH vault is $5 million, and only $3 million is eligible for the discount programme. The shares of the discounted Locus tokens are separated according to the share in the vault, and provide users the opportunity to buy Locus with a 33% discount ($1.32 per Locus). This gives an extra 13.2% to the APR of vaults ($0.67 is the premium received per Locus token multiplied by 50 000 Locus tokens divided by the total TVL of ETH vault), which leads to higher long-term TVL, and generates $66 000 to the treasury that is transferred to token liquidity and insurance fund. Since we narrowed down the audience to long-term holders, it will affect the price less with the support of increased fees from the ETH vault generated for Locus holders.

VOTING QUESTION Do we implement the feature of limited discounts for Locus tokens for long-term holders of vault tokens and Locus stakers to create a revenue stream for the treasury to be used as a liquidity and insurance fund? The parameters of the feature are discussed with the community.