Pickle Finance’s Smart Treasury
Pickle Finance have launched a Smart Treasury.
It’s an 80/20 PICKLE / ETH Balancer AMM Smart Pool, initially seeded with $100k of Pickle and ETH.
All revenue generated by the protocol over $400k weekly will be added to the pool in the form of ETH. This generates continued buying pressure on the PICKLE token, rewarding all members of the community who hold the PICKLE token.
Aside from price appreciation the Smart Treasury serves two major purposes. Firstly it establishes a highly liquid PICKLE market. The second benefit is that as it grows it can be used to incentivise and reward community and protocol development sustainably.
BAC/ DAI Jar
The announcement also introduced a brand new jar that farms the Basis Cash algorithmic stablecoin. Rather than collateral, Basis Cash uses bonds and shares to incentivize return to the peg. The jar farms for BAS rewards and sells them, constantly compounding and currently earning an estimated 685% APY.
As this is a stablecoin farm impermanent loss should be minimal, although there are risks associated with algorithmic stablecoins.
A farm is expected to be announced shortly, which would further boost the rewards with PICKLE. Vote on the forum proposal here.
Conclusion
I’m happy to see such positive updates from the Pickle community, who really seem to be turning a corner with the New Year. Integration with Yearn v2 is also expected this month, which will see PICKLE locked up to boost rewards in a similar fashion to veCRV.
Combined with the Smart Treasury’s regular buying pressure and a low emission rate close to 1%, PICKLE is shaping up to have a solid economic model.
Join the Pickle Finance community.
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