It is my Pleasure to be writing up my Second Proposal for Voltage Finance.
This idea comes from (Telegram: Contact @cryptosiscool) . I feel this will create a unique feature within the Voltage ecosystem, and DeFi space in general.
Idea:
Create a function that will allow users to invest across all voltage farms evenly,
giving users a balanced exposure to all assets.
Allow users to use one asset to invest in all Liquidity Pairs currently on Voltage Farms with the click of a single button.
Have said action deposit newly formed pairs into the voltage farms.
Allow uses to collect the farming rewards for this with one click, or compound rewards evenly across all farms.
Give Users the option to manually manage or re-balance their position as market conditions vary
Reason:
A function like this would:
take much of the guess work out of which Liquidity Pair to invest in.
create a simple way for people who are new to Decentralized Finance to quickly and safely gain experience to the complexly of DeFi that many take for granted.
save time for DeFi users of all experience levels
give users a diverse balanced exposure across many cyrpto assets at once.
Ideally this would want to be accomplished by voltage users with an action that is very similar to the ‘ZAP’ feature currently enebled on Voltage.
I Hope this propoal can spark some intrest and comments from the Voltage and Fuse communty, i would be very interested to hear how our collective minds can expand and improve upon this idea.
That’s a great idea! I can definitely see how it would simplify the process of investing in different liquidity pairs and provide a more balanced exposure to different assets for users. I do have a few questions for implementation though:
Will the function handle the addition of new farms and liquidity pairs as they are added to Voltage in the future?
How will the function handle the volatility of the market, will it have an automated mechanism for re-balancing or it will be manual?
Overall, this feature would be a great addition to the Voltage ecosystem and DeFi space, let’s work together to make it happen!
Looking at the current farms on voltage (not the single stake) you can see that across all farms there is an average APR of 20.4% in volt and 7.8% in fuse. for a total of 28.2% APR
I could imagine this idea being implemented in a few of different ways,
The protocol could mimic depositing across all farms, by depositing in the the highest yield farm $volt/$fusd which has 42% in volt, and 31% in fuse , then distributing 28.2% yield down to investors. This method will in time provide greater liquidity in the $volt/$fusd liquidity pool, creating a more stable swap of $volt. A surplus of 44.8% APR would be created using this method. This of course does not consider the swap fees one would earn from being a provider of liquidity to the various Liquidity Pools associated with the farms.
Protocol would would add Liquidity across all LPs evenly, and deposit into all farms,
the protocol would act as manager of a users funds, collecting the rewards from the individual farms. Users would collect rewards and swap fees only when withdrawing from the contract.
Create a Balancer (https://balancer.fi/) style Liquidity Pool, a multi-token LP consisting of volt, fuse, eth, btc, bnb, btz, G$. The Liquidity Pool would be comprised of 14.2857% of each currency.
Have this be represented through a proxy token, much like FUSDv2 . Then pair this with FUSDv2 and create a farm on voltage returning the 28.2% APR as if even distributing funds across all farms. This method would give users the broadest exposure across all major currencies with in the fuse ecosystem, while encouraging people to mint and use FUSDv2.
I’d be interested to hear everyone’s thoughts on this.
to be writing up my Second Proposal for Voltage Finance.
. I feel this will create a unique feature within the Voltage ecosystem, and DeFi space in general.
