hi everyone , we have 3B USDC in PSM now , it do not have revenue and system risk , and the crypto community worried about it . so we need a solution scalable and simple to solve the problem.
My answer is deploy new leveraged ETH product , it is a new synthetic asset product just like DAI . just call it ETH2D and ETH3D for 2x leverage and 3x leverage eth.
reduce USDC risk , scalable above 10B
eat more ETH in Maker
more profit in ETH
leveraged ETF is big market , it is about 50B in US. (link:Leveraged ETF List ) most product are for bull . the biggest 2 fund are [ProShares UltraPro QQQ] and [ProShares Ultra QQQ] . 15B and 5B total assets , 5B and 0.2B daily volume .
if we thought crypto VS stock , ETH vs Nasdaq , we can assuming the demand for leveraged ETH like 1/10 leveraged ETF size , it will be more than 5B in assets , 0.5B daily volume.
and crypto market is more speculative , I think the TAM will be bigger , and it will grow when ETH grow.
In crypto world perpetual contract have more volume than spot trade ,ETH perpetual contract daily volume is above 10B.
user deposit 100 ETH to PSM for mint ETH2D (or ETH3D),
PSM swap 350,000 usdc for 100 eth (eth price 3500)
and then user get the token 100 ETH2D and PSM have 200 eth
the ETH2D can redeem and resell on market
there is a similar product on-chain: eth2x-fli
it will down the leverage when market down , it works well without liquidation
Maker’s killer app is print money , so the capital cost and market depth have big competitive to other leveraged product. so leveraged ETH have better take rate to Dai. we can design both mint and exchange take rate. for example, 0.1% mint fee and 0.1 % exchange fee and 0.2% redeem fee. if daily volume to 0.5B , exchange fee for one year is 0.18B.
and the ETH in PSM can also staking , the staking revenue will more than 5% apy . if TVL of ETH is 5B , we can get 0.25B/year
and all the revenue is ETH , maker will benefit from the long term ETH growth.
we can incentive user to lower mint fee and revenue share for aggressive growth
and, if maker have more ETH in balance sheet , it will have more room to innovation .
it is just draft , I will appreciate get your feedback .
Maker will be great paradigm shift from user’s ETH backed to protocol’s ETH backed loan.