Putting the community fund GEL tokens to work

50% of GEL tokens are allocated to a Community Development Fund. These are unlocked tokens.

Why don’t we put them - or at least some of them - to work? It feels like there are opportunities here to make this asset pool yield bearing for the protocol, rather than just sat there waiting to be distributed.

Why not use a % of these tokens to set up a set of G-UNI GEL pools to essentially further grow the GEL treasury? This is distinct from liquidity mining in that it would essentially be the protocol treasury that would be benefiting - although clearly these could be used to support rewards further down the line.

Rather than going into specific details at this stage it would be interesting to hear the perceived pros and cons of doing something like this. Thoughts?

Since there is not yield earning opportunity for GEL in the DeFi space yet, I have a wild idea, which however is probably too hard to execute lol:

Create a community owned network executor entity and use the fund as stake to process tasks and earn fees for the treasury.

very interesting idea, so basically use some of the funds of the treasury to provide liquidity in order to earn fees from Uniswap v3 trades happening which can then on a continuous basis be ejected and then allocated to some network growth activities such as to pay developers to build new stuff on top of Gelato.

Definitely worth considering, this would be an alternative to the Liquidity Mining rewards for existing GEL holders scheme we discussed in another post. It would also increase the overall liquidity of GEL on e.g. Uniswap v3. We would need to discuss more specifics around it.

Hehe interesting idea, however currently running an executor entity is non trivial and requires full time DevOps Engineers to accomplish, which is the reason why it is not more “open” yet. We are working hard to make it more stable and easier to run so that at some point maybe everyone can just spin up a node and execute transactions in Gelato, however currently that would not be possible.

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Earning fees through LP is potentially a sustainable idea, though I think it goes without saying that a certain mount of testing on the rebalance strategies is needed before deploying a large amount into it (I assume that we wouldn’t want to go static because of the unmanageable IL). We wouldn’t want to see that eventually simply holding ends up outperforming LP strategies, which is quite often the case for many V3 LP management products.

The more I think about this, the more I think using Olympus Pro for this might be the best way forward as it enables the protocol to control its own liquidity and also open it up to other participants in a virtuous cycle.