14-day OETH drip duration

Summary

Update the OETH dripper's drip duration from 3 days to 14 days.

Background

The dripper creates a smoother, more predictable yield for OETH. Any yield generated from reward token sales (e.g. CVX) is distributed over a period of time instead of immediately upon harvest. In the case of OETH, this drip duration is currently configured to 3 days.

Motivation

Our first Balancer+Aura strategy was deployed over two months ago and received a full allocation of over $10 million 40 days ago. It has since been accruing substantial BAL and AURA rewards. However, the harvester was not updated, meaning these rewards are not yet converted into yield for OETH holders.

An on-chain proposal will soon update the harvester and unlock a wave of new yield for the dripper to distribute. Based on the current 3-day drip duration, this would lead to a brief period of OETH APY in excess of 13%. This would be wasteful and result in many questions from current and prospective OETH holders. It would be better to spread this pent-up yield out over a longer period of time.

Recommendation

I'm recommending an increase in the drip duration from 3 days to 14 days. I've estimated that this would result in an APY of approximately 100bp over what we would otherwise be generating. See my dripper analysis in the OETH Math sheet for the calculations.

Disclaimer

Note that increasing the drip duration may cause a temporary reduction in the drip rate and the OETH APY before the new funds make up for the longer time period. If the harvest of the BAL+AURA doesn't occur immediately when the drip duration is increased, there will be a period of time during which the existing dripper funds are spread out over 14 days instead of 3 days without a corresponding increase in the amount dripped.