My opinion also aligns with this statement that spreads would reduce. Right now Senior Pool LPs are forced to choose between selling at a 15+% discount now or waiting potentially 12+ months to withdraw once the supply/demand for capital begins to balance. This proposal will give the option for LPs to incrementally withdraw a portion of their capital through time, making the idea of selling instantly for a 15+% loss less attractive.
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@blakewest - actually I was saying that by virtue of the fee being a % of the withdrawal request, it automatically scales w/ size.
So, theres a disincentive to over-bid your withdrawal request because you’ll pay a higher fee.
Agree with simplicity to start.
Perhaps there could be some more complex function where the fee scales as the FIDU you have requested to redeem increases relative to your total FIDU holdings to further reduce gaming.
Could be unnecessary if it turns out that people are generally not requesting max fidu withdrawal when they know its not feasible given relative amount of USDC available.
Side note - how is it possible to observe whether people have true intentions here?
Also, a thought: Will there be visibility in to the current queue of redemption requests in real time? I think that would be useful so that people can project their likely redemption timeline.
Further to this, there could be an elegant byproduct of this new feature where a FIDU order book is created:
If you request a redemption, you can also offer a price that you’d be willing to be redeemed at instantaneously, which I would imagine would fluctuate given the estimated length of time required to be redeemed through the pool directly.
This way arb bots and would-be FIDU buyers can scoop up blocks at a discount, thereby clearing the queue more quickly.
Maybe FIDU holder’s block offers can be added automatically to the existing backer NFT secondary platform via the redemption front end.
I think this could be highly beneficial: this “order book” of sorts would be the first place large senior pool investors would go to buy/sell, which bypasses the slippage issues of Curve and doesn’t rely on a third party market maker.
I know that institutional investors would gain a lot of comfort with a historical time series of FIDU block sales, which would support their belief that FIDU is truly liquid.
@will @blakewest how will you seggregate the pro-rata amount an LP is eligible to claim in the subsequent periods? does FIDU get burned at the time the amount is calculated or at the claim/withdraw time? Assume LPs don’t continue to earn interest once that amount has been allocated to them to claim the withdraw? Trying to understand the impact on pool NAV mechanics here
Council has approved the proposal
When will this proposal be implemented?
Expected date is November
yes, very reasonable idea. suport