I wanted to suggest something different for AVs limited access by owning Alpies and I also think it should be moved in another thread later on.
We have an ALPACA-BUSD pool that has only 20M TVL but also a good APR.
For what I understood the max size of a 8x AV built on top of it would be of 2M TVL (250K of position value).
By a rough estimate I did, this AV should generate something like 200-300% APR (600-1100% APY on 250k$ => 1.5M - 2.75M).
I’m aware that from the smart contract it’s not possible to effectively short Alpaca in that pool (max 2x leverage) but for this proposal I’m assuming we can create an AV that can ignore this limitation.
I understand that the problem with an AV like that is that it would be limited to a very small TVL and won’t attract a lot of funds.
But what if the purpose of this AV could be to increase Alpies value instead?
I thought 2 possible options for this AV:
a) We create it as a normal AV with access limited by the owning of an Alpie, we estimate a max number of people that could enter considering that not everyone that owns an alpie could be interested into the AVs (eg. 2.5k on 10k) .
At this point each Alpie would grant a space of 250k / 2.5k = 100$ x Alpie with an APY of 600-1100%
b) We create a closed access AV and the alpaca finance team funds the initial 250K needed to max out the 2M TVL.
Then we give the possibility to all Alpies owners to gather all the interests that this pool generates.
I know this can be technically done because I’m aware of another NFT project that did a similar things but with reflections from NFT trading fees.
In alternative we could allow people to stake Alpies and only people who stakes them could earn a portion of the earnings.
That would become an effective way to generate a passive income for Alpies just owning/staking them.
As a result we:
a) Increase the utility and intrinsic value of Alpies
b) Increase the utilization for the alpaca lending pool making it a more appealing option for people that don’t want to lock into the governance vault
c) Increase the liquidity for the Alpaca-BUSD pool by 10% helping to stabilize the price fluctuations a bit, may be more relevant if we decide to make a bigger sized AV.