Absolutely love this proposal. A real Win-win-win
- A win for newcomers -> they can buy ALCX at a lower price
- A win for ALCX holders -> less incentives required for liquidity providers, so more value for your token
- Another big win for ALCX holders -> additional stream of revenue: both liquidity farming and trading fees (eternally!)
- A win for ohm and interprotocol cooperation
There is only one thing I am a bit concerned about. This bond program gives traders arbitrage opportunities. They can buy ALCX at a discount and sell it for profit leading to a downward pressure on the price. You can argument that the same counts for Ohm, but I believe that's not 100% true. The Ohm community has a very strong staking mentality (3,3), also boosted by the enormous APY's. Furthermore, although the ohm protocol sells bonds with a discount, it is till making a lot of money on every sale as it is selling something that is backed by a value of "a few dai at max" (1 Ohm) for multiple hundreds of Dai. (currently)
Since these mechanisms are not at play at ALCX, the bond program might put some downward pressure on the price of ALCX - also leading to impermanent loss in the LP positions.
Maybe good staking incentives might mitigate this downward pressure in the future? (e.g. fee sharing, boosted APY on loan payback, dao/NFT functionalities,...)
Interested in hearing your thoughts about this.