Proposal: AmpleSense Grant to Expand Elastic Vault Functionality

[pascal-merkleplant]

Thanks for updating the proposal.

However, as none of my comments were answered in the last discussion, I’ll add them here again.

I do not see how the EEFI token is sustainable.

@pascal-merkleplant

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 continuously 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.

How could EEFI’s value not be diluted if Ample is most of the time in equilibrium?

@davoice321

vault users receive rewards in the form of EEFI, an AMPL derivative

Ampleforth’s docs state that derivates are “a specific type of financial asset whose value depends solely on an underlying financial asset.”, see here.

Considering this definition, the EEFI token is not a derivative of Ample. While there is an underlier for a certain amount of time (at least 90 days due to locking), the EEFI token will exist well after the Ample could be withdrawn again.

Introducing EEFI minting through FORTH deposits dilutes the Ample-EEFI correlation even more.

@davoice321

Support additional utility for the FORTH token

FORTH’s utility is governing the ForthDAO that is dedicated to the growth and adoption of AMPL.
Personally, I do not think there needs to be more utility.

@davoice321

Expand the breadth, impact and utility of an AMPL derivative (EEFI), which could be further integrated into the AMPL ecosystem in the future

This seems to have cyclical reasonings. “Help us make EEFI great, to have a great EEFI”.

@promiseland.crypto

criticism come with no valued input

To be honest, I really think that the criticism mentioned by @kbambridge, even if written in a rough tone, is valid.
How is the vault not a value transfer from AMPL → ETH/EEFI with an optional buyback of AMPL?

And to be clear, the ForthDAO is solely dedicated to the growth and adoption of AMPL, see here.