Reward Liquidity Providers via APY + Time Holding ( no idea how )

General Chat
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I was just thinking about impressive the big brains that are in this space/project. How about a rewards system (algo) that rewards the current way via APY strategies, but also layer in extra points for people who hold in vaults/staking for longer periods of time.

This way hot money that has a shorter time preference gets a certain % (but maybe a bit less…the difference is held in a vehicle and passed along to participants that hold for a period of time)…sort of pyramiding increasing rewards for folks who stay in.

Just curious. This would attract long term capital. More consistent TVL. Incentivize letting capital work and maybe moving away from fast money moves.

Thanks for listening

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Something to consider

There is already a disincentive to moving funds around, and that is the withdraw fee (plus the extra gas but yearn doesnt get that)

So long term LPs are rewarded by not paying as many fees as frequent movers are.

5 Likes
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I would be against this.

It is using newcomer’s profits to pay for long term stakers. And that has a lot of negative connotations attached. Plus as jimsox pointed out, withdrawal fees already disincentivize withdrawals.

4 Likes
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Time lock is so far a pretty unexploited area. Maybe somebody can develop some strategies that would benefit from having time locked coins.