I agree with general sentiment of why pay Bankless so much especially when it’s entirely Lemonade’s idea and they memes it into existence.
I think we shouldnt charge any fees for BED at all. If
the intentionn is to have BED be a constant fixed weight index this is actually a good candidate for a balancer pool for a few reasons:
- Why pay for methodologist to rebalance when balancer pool automatically rebalances and we earn fees for that instead of paying fees to Bankless
- BED takes practically no brain cells to do, it doesn’t change allocation, and it’s only 3 tokens so not the high gas savings you get by buying a broad index token like DPI. We aren’t adding any value, just making distribution easier. We already make fees from DPI component we should treat BED as a “loss leader”
- BED doesn’t have the same risks as running DPI on balancer. There is no possibility of a token going to 0 (except DPI but thats on us anyway) and you want “impermanent loss” because that’s what keeps it a fixed weight
- This increases liquidity for DPI instead of having it locked in a set contract
- Balancer pool is better value for our users! They earn swap fees from dex swaps and they don’t pay fees because smart contracts are automating the methodologist role so we don’t need to pay Bankless at all.
If BED gets passed I think Lemonade should get a fat bonus ($20k?) and Bankless can get INDEX for marketing like any other community contributor. They are providing marketing services, that is all, separate concerns between marketing and methodologist since methodology can be managed autonomously by smart contracts