@ducc
I think we need to differentiate between various motives behind comments we’ve received.
And we’ve acknowledged the interest – both from people in this thread, and people who are using the vault - to have a means of making buying AMPL with EEFI easier.
From a smart contract perspective, the Elastic Vault contracts are immutable, and the vault design is sound from the perspective of what it is designed to do. We’re not scrapping the Elastic Vault because we’ve received pushback on the design from SOME members of the AMPL community. In fact, re-designing it isn’t feasible, but creating proxy contracts that add to its functionality is certainly doable.
That being said, the focus of the next version of the proposal will be setting up an infrastructure where EEFI → AMPL sales are made possible for vault users, with the added need of ensuring any additional functionality serves the needs of vault users while further strengthening the AMPL ecosystem.
The lack of recognition of the impact of the vault on the demand-side dynamics of AMPL is curious to me. I don’t understand why that demonstrated benefit is being ignored, or under-emphasized in these discussions. There is a demonstrated positive demand-side impact on AMPL with the Elastic Vault that is more important than what happens during positive rebase.
So, I don’t want anyone reading this conversation to think that the MAJORITY of AMPL holders share your view. What I do think is that many feel it would be good to have a facility to encourage easier EEFI → AMPL sales. However, that will require three things:
- Additional development time: This will require funding
- Additional audits: This will require funding
- Sufficient liquidity for EEFI/AMPL, which will need to be incentivized and provided
We are happy to develop a proposal along these lines, but the benefits that the Elastic Vault have on demand-side dynamics (during negative and neutral rebase) for AMPL should not be under-emphasized – these benefits have been demonstrated. Demand-side benefits are even more important than what happens with the vault during positive rebases. Because this benefit has been demonstrated, I think we can agree that the Elastic Vault has been overall, a net positive for the ecosystem (because it is stimulating additional buying behavior during negative/neutral rebases, additional borrowing activity and reduction of sell-side pressure during a period when stimulating demand/reducing sell pressure for AMPL is essential), as opposed to the net-negative that some have suggested in this thread.
As I said before, we are revising our proposal to take the concern about driving additional demand-side momentum for AMPL into account. But the argument that the elastic vault is a one-way operation and does not incentivize AMPL buying behavior (or have other benefits for the ecosystem) is incorrect.