Proposal: WAMPL-stAMPL Liquidity Pool
Executive Summary
This proposal recommends establishing a WAMPL-stAMPL liquidity pair to address the volatility challenges facing stAMPL holders. The proposed pool would create a mechanism for AMPL holders to participate in stAMPL exposure without requiring active position management, while improving overall market efficiency. By incentivizing this pool via Geyser rewards, we can help align stAMPL functionality with market expectations and bolster the entire SPOT ecosystem.
I can’t repost the proposal its blocking me so I put it up on gist
1 Like
Did some digging into the fee parameters if curve is used:
Recommended Curve Pool Parameters for WAMPL-stAMPL
After analyzing the relationship between WAMPL and stAMPL, here are my recommended parameters for the Curve pool:
A (Amplification Coefficient): 40,000-80,000 This is lower than standard stablecoin pools (400,000+) to accommodate stAMPL’s leverage range of 1.1x-1.5x and the daily divergence from AMPL rebases.
Gamma: 0.000145 This low gamma creates a price curve that’s relatively flat near balanced states but steepens with imbalance, accommodating daily fluctuations while preventing manipulation.
Moving Average Time: 86,400 seconds (24 hours) A full day captures complete rebase cycles, creating a more accurate price oracle that doesn’t overreact to short-term divergence.
Allowed Extra Profit: 0.000005-0.00001 Slightly higher than minimum to accommodate rebase-driven divergence while limiting pure arbitrage opportunities.
Fee Gamma: 0.0005-0.0008 Set to create appropriate curve between mid fee (2%) and out fee (3%).
Mid Fee: 2% Standard trading fee that balances revenue generation with trading activity.
Out Fee: 3% Higher fee for trades that significantly imbalance the pool, creating natural protection against exploitation.
The fee structure is specifically designed to work with stAMPL’s 5% redemption fee - creating a system where arbitrage only becomes economical when price differences exceed reasonable thresholds. This prevents exploitation while maintaining efficient price discovery.
I would like to confirm that these parameters make sense with someone else that has experience with curve.
1 Like
One detail I left out is that curve takes 50% of all platform fees of curve are taken, which would eat into LP rewards.
As an alternative to curve we could have another managed pool on charm which takes significantly less of a platform fee (1% of LP fees). We would need to consider proper rebalancing parameters for that vault.
1 Like