Thanks for the thoughts so far, everyone
True in a strict sense, but I do want to caution that there is a cost to that 2%, as others in the thread have pointed out.
@Greg Not much more to add, I agree with your points and they should always be under consideration. The DAO does make some revenue from the LP positions it holds (about 1/3rd of the AMPL Uniswap liquidity, which is strangely profitable). Liquidity on Buttonswap could be similar, but without impermanent loss. SPOT has the possibility of enabling a protocol fee on mints and burns, similar to uniswap. They are currently off, to avoid any extractive qualities. It’s not clear under what circumstances this would change, but it’s possible to enable at some point. The DAO may also deploy its AMPL into the rollover vault to get some yield there as well. Other options for deploying capital may arise in the future, as the ecosystem evolves.
This is definitely something to consider. I’m partial to first observing the activity of the system without outside bias. This gives the DAO valuable insight into the effectiveness of the rotation configuration, and would inform how bands should be set in the future. I’m ok with being outvoted on this, though. It could help spur initial growth of SPOT, which also has concrete value.