Research on how to stabilize LP economy

[sergfeldman]

A proposal for research on how to stabilize LP economy.
LP economy - business model where revenue comes from putting assets to liquidity pools.

For example,
Put 100 USDC to ETH-USDC LP
The APY is above 30%, so the potential reward is 30 USDC
For exampke, the risk that ETH price go down on 50% is 50%
Then the potential risk damage is 25 USDC

To decrease the risk damage keeping the risk reward, several option strategies can be used, ie

• buy Put American-style options on ETH with the purchase price
• sell covered Call options on ETH

Potentially, LP tokens can be blended with options into structured products in the form of NFT.

But what if when somebody enters ETH-USDC LP he also can purchase anti-ETH tokens and put them to LP as well?
Price of anti-ETH tokens is calculated based on the appropriate ETH price with the logic similar to options.

The profit and losses on the basic token ETH are compensated by profit and losses on anti-tokens.

For example, you purchased anti-ETH 1300
If ETH price is 1200 USDC then your profit is 100
If ETH price is 1300 USDC then your profit is 0
If ETH price is 1400 USDC then your loss is 100

This potentially can create a new market of anti-tokens with the goal to stabilise the LP economy.
Commissions for issuing and LP anti-tokens should be paid in Ubiquity tokens.

[sergfeldman]

Stablecoin strategies are popular in the bear market.

With the Ubiquity vision “stabilize Metaverse economy” it might be suitable to offer products:

• Stable vaults

Similar to https://twitter.com/cyrilXBT/status/1630847619839803393

• Marketplace of stable and delta neutral yield strategies with “bring your own yield source” logic