I’ve been chatting with Alex about bringing an $ARSE (AAVE RUNE SNX ETH) index to the system. He suggested continuing the line of discussion so that the community can contribute.
The main concern I raised was around the structure around the $ARSE token and community. I could talk in much more depth about how I think it would ideally work, but for simplicity here’s what I think a good model for this index is currently:
- $ARSE – mcap-weighted basket
- $ARSEDAO – yield from $ARSE management fee pass to a treasury, governed by $ARSEDAO holders. Some yield passes to PieDAO treasury.
So $ARSE is the token which represents an underlying basket of $AAVE, $RUNE, $SNX and $ETH. It charges a small operations streaming fee. That fee gets passed to a treasury which is managed by $ARSEDAO.
I understand that this isn’t really how PieDAO is currently set up. Currently, all yield for all Pie assets goes to and is managed by $DOUGH. But my proposal would be that PieDAO considers making this kind of setup possible, effectively taking a platform-for-funds approach.
I suspect there would be many technical and economic synergies with Balancer v2 Asset Managers in taking this approach.
The main benefits for asset managers here are 2-fold:
- users can get precise exposure to $ARSE yields, rather than needing to buy in to the success of all other $DOUGH linked assets
- contributors can congregate to make precise governance decisions about expanding the $ARSE ecosystem – e.g. how to promote it, how to extend the product line. The alternative is going via $DOUGH governance, extremely difficult with mixed interests.
This in turn would create the ability for PieDAO to find and scale interesting asset management products, building revenue for $DOUGH from each.