firstly, I would like to applaud blockzero for developing a new strategy to reimagine yield optimization. Would be interesting to see more math behind the model from the dev team so as to allow citizens to speculate on TVL : LP owned by protocol ratios that would be profitable for aqua. As much as I like the sound of partial or full collateralization of aqua by fees from the protocol it would be nice to see some form of deflationary measures incentivizing token holders as well.
However, in the medium I saw a missed opportunity and that is the possession of liquidity mining rewards from AMM’s. the protocol intends to keep fees generated from trading but what does it plan to do with the earned uni or sushi?
also an important question: how does aquafi plan to handle liquidation events on uniswap v3 pools?
finally, I would strongly suggest that some sort of incentive is needed for aqua token holders. there needs to be an incentive to buy and hold the native token from the launch date. I would suggest especially in the current crab market where market participants are likely to consolidate positions into large caps, and recoup losses incurred from trading/holding alts. I would also suggest that the large unlock from xio lp providers will create some sell pressure unless there is an immediate incentive to hold the token to offset this early actor risk. This could look like an incentivized aqua/eth or aqua/xio lp pools, it could look like bonus yield for aqua holders, it could look like a single stake aqua pool. but there needs to be some sort of reward vector that offsets the massive risk of holding/buying a newly launched yield token
secondly element.fi is a derivatives platform that allows users to deposit yield bearing positions from yearn into a fixed term and mints for the user a yield and principle token, the yield token represents the yield that the position will acquire over the time of the term and is redeemable for this value at the end and the principle token is redeemable for the initial deposit.
It would seem to me that a synergy between these two protocols could allow for further capital efficiency for users, which could drive TVL