It seems that almost every week there is a launch of a new chain or a new protocol that offers juicy yield to first movers.
We propose adding an Emergent Markets risk category, that utiltizes the higher risk category when there are no emergent opportunities but deploys capital into protocols at launch (or before if that can be brokered) to secure the best possible yield.
We page @BlockAnalitica to provide some thoughts and guardrails around:
Maximum size per new protocol
Minimum and maximum duration of engagement with new protocol
Emergency exit procedures when things go south
We could also partner with products such as liquidity.land that provide before launch capital to new protocols, or use Summer BD to throw around some of the weight in that tier to secure favorable conditions.
This tier would be a kind of ultra-high-risk experimental tier that would give ginormous yield, but obviously come with a risk.
Wanted to open the discussion on if that is interesting here.
This is a really interesting direction, kind of aligned with a natural evolution of the “Higher Risk” framework into something more dynamic and opportunistic.
It is not completely clear to me, what mental model I should develop to get more understanding of this proposal. Therefore, are we talking about:
Speeding up the process of integration of new networks.
Speeding up the process of integration of new protocols, or
a new crosschain fleet (ultra-higher-risk) that includes new networks + new protocols (automatically rebalanced?).
The way I see it, it would be great to come up with a solution that helps us prevent the outflow of TVL when there is a new opportunity on the market, mainly a new network launched. Which is usually followed immediately by DeFi protocols offering yield opportunities.
In case, the aim is to speed up the process I can imagine the base case scenario as follows:
New network launches (e.g.: Linea, Plasma, Monad, …).
Once the cross-chain upgrade is made, then I think this makes sense. For now this would be a lot of work for additional options, whilst users just want to deposit their stables in a single place and enjoy the yield everywhere.
This is a powerful idea, but the biggest challenge seems to be operational: how do we build a due diligence process that’s fast enough to capture early yield but robust enough to protect from rugs?
@rspa_StableLab my impression is that this is with respect to being able to deploy onto new networks fast, so that Summer basically satisfies the farmers??
Yes exactly, this is what I am looking at. This tier would be capital that wants to yeet into NewChain quickly without having to manually explore the best bridges and proposals.
We’d need some level of risk analysis. But basically if we focus on the blue chip launches we should be Gucci.
