as the AVs have limited availability due to their nature (dillution of trading fees, available capital, utilization/borrower fees…), it would be good if people were able to invest into AVs based on their xAlpaca holding thus providing premium utility. Each automated vault would open first for xAlpaca holders for lets say 24 hours, where the possible entry position would be determined by following formula:
AV Pool Size / xAlpaca locked in governance (snapshoted either by epoch system thus weekly, or new one prior to release of given AV) x xAlpaca amount
This would render each holder of xAlpaca eligible for entry based on percentage of xAlpaca to total xAlpaca locked. So if you hold 1000 xalpaca and there is 40 milion xalpaca token locked in governance vault on the day of AV release and AV has 20 milion cap you would be able to lock into AVs: 20 000 000/40 000 000*1000= 500$ . After the 24h “premium” period for xAlpaca holders would pass, everybody (broader public not just xAlpaca) would be able to put money into them, if there is still any amount left for investing.
As the xAlpaca holders would only have “priority” in access, this wouldnt limit inflow of capital as Sam suggested as broader public would still have access to AV just a bit later than actual Alpaca supporters.
This could stimulate/incentivize Alpaca locking, thus further decreasing fluctuation while rewarding loyalty. The decreased fluctuation combined with high desire for AV would likely to lead to increase in price of Alpaca, which means leverage emissions would have higher value/higher APYs thanks to the higher Alpaca price which is good to offset the dilution on trading fees itself, thus it further enhances the AVs APY at least for the remainder of alpaca emissions.
Furthermore, on marketing side, I would suggest to not release all AVs the second they are ready, but announce the release time prior, possibly even with some countdown so people can actually track it. Tracker is psychological incentive of waiting for something to come. Example: Tomorrow 13:00 new AV will be released. If we decide to take the approach above, it might be even desirable to release on a weekly basis, not multiple times per week ( as previously) . Which could further stimulate/incentivize the longer length for which Alpacas are locked into the governance vault as its xAlpaca amount that is decisive.
Based on the above model it feels like a win-win situation for both xAlpaca holders and Alpaca Finance.
For Alpies, I dont feel they should be taking part in this. The cost of implementation might be too high compared to added value. There are other ways to increase intrinsic value of Alpies and drive demand, but that should be discussed in different topic.
Note: I am saying this as big Alpie hodler