First of all, great to see such an active discussion and respect for proposing this application to all folks who worked on it!
Now to the proposal itself. From my current understanding of the elastic vault I have to agree with @kbambridge in that I do not see any benefit for the ForthDAO by supporting this proposal.
As far as I understand, the elastic vault mints EEFI tokens when Ample is in negative or neutral rebase territory. If Ample rebases positively, the minted Ample is sold for ETH to buy and burn EEFI.
If we assume that the goal of having Ample most of the time in neutral rebase area is achieved, this would mean most of the time EEFI tokens are minted. The goal of the ForthDAO is, among others, to increase Ample market cap. Therefore the happy path is that EEFI gets continously minted with short periods of positive rebases in which Amples get sold. By all means, this does not sound sustainable for me and definitely not beneficial for Ample, but please correct me if I’m wrong with my assumptions and/or understanding.
While this statement may be true in nominal terms I do not believe such a system is possible if measured in terms of purchasing power/value. As mentioned above, EEFI supply seems to be only growing if the ForthDAO’s goals are achieved and, if nothing else about EEFI changes, therefore dilute in value. However, time will tell and I’m happy to be proven wrong.
Why should ForthDAO have an additional method of exposure which introduces new risks?
This seems to contradict the statement above.
I think the ForthDAO should wait until the elastic vault has been running for some time, i.e. became Lindy. Currently I see too many red flags for an investment in EEFI.
Other things I noted in this discussion here and in the discord channel (interpret in any way you like):
- There seems to be a lot of focus, or at least mentions, of the time the AmpleSense founders are already in the Ample community. I do not think that this is something that has great meaning in terms of whether a protocol/product is working and supporting it is beneficial for the ForthDAO.
- I won’t be able to put this into words properly, so please try be as understandable as possible here: Compared to other discussion, there seems to be a lot messages focusing on “creating good vibes”, “showing respect”, naming community members and stating unprovable things.