Proposal: Make the Index Fund productive

Under the current system, revenue earned by the Unipilot protocol is sent to the index fund, which is currently worth $230,000 (link below). Assets in the fund are idle and are not productive.

https://etherscan.io/address/0x95477f96f78ec38916b5457030387d844e886ab3#tokentxns

This proposal suggests that we make this capital productive by using these funds to add liquidity on Unipilot, likely to the USDC/ETH pair. To do this, we would swap all non-ETH, non-PILOT assets in the index fund to USDC and then swap as necessary any ETH to USDC so that we have the required ratio of ETH and USDC for adding liquidity.

This protocol-owned liquidity would be incredibly productive as 1) returns in this vault are typically in excess of 100% APR and 2) the protocol would earn 100% of fees earned from the liquidity vs. the usual 20% that it earns from users’ liquidity. Therefore, adding just $200k of protocol-owned liquidity would be equivalent to TVL rising by $1m in terms of revenue generated.

This move could grow the treasury (previously called "index fund") in an exponential manner. For example, with an APR of 100%, $200,000 would turn into $400,000 after one year and $800,000 after two years, ceteris paribus.

Increasing returns for the treasury means higher rewards for stakers, as well as reduced $PILOT token emission (inflation), as the revenue generated can also be used to cover costs such as salaries and growth. And remember, as the protocol continues to generate revenue, more can be added to these positions to further increase returns.