Name: Revenue Automation Strategies
Scope: Modifications to revenue distribution, allowing operators to automatically invest revenue in DeFi protocols
With the advent of native RenVM smart contract capabilities, we have the ability to make more advanced use of fee revenue.
As a DN operator I would like my earnings to be automatically invested in DeFi protocols to further increase my ROI. I would like the ability to opt-in to “Revenue Automation Strategies” (RAS) which are executed automatically by RenVM.
An example of a RAS would be directly depositing my earnings into a Curve pool. I would opt-in to this strategy and set the percentage of my earnings that will automatically deposited to Curve. e.g. I could decide to deposit 50% of my renBTC earnings in Curve, and 100% of my renDOGE earnings in another RAS.
As fees are earned RenVM would automatically deposit them to Curve. Because RenVM would only need to execute a single transaction to deposit on behalf of multiple users we would save gas compared to each user withdrawing their earnings and depositing to Curve individually.
RenVM would keep track of how much Curve belongs to each user, and provide a mechanism to withdraw the underlying assets (and any LP rewards) from Curve.
Strategies could be proposed via the governance process. Community fund grants could be used to fund development of strategies, with initial strategies perhaps being developed by the Ren team.
Once Ren is further down the path to decentralisation it seems likely that Yearn will add renBTC-based strategies. I can see a symbiotic positive feedback loop forming here: ren* assets are automatically deposited into Yearn, where they are deposited into other DeFi protocols, increasing liquidity/usage of ren* assets, leading to more fees, leading to more ren* assets deposited in Yearn…
My holy grail here would be a Yearn strategy that pays rewards in REN. I would dedicate 100% of my earnings to this strategy, and eventually my Ren nodes would earn enough REN for pay for another node.
To my knowledge this is the first RFC for such a proposal.
This is an early RFC to gauge community sentiment and brainstorm ideas for strategies. Actual implementation details will be added as the discussion evolves, assuming there is interest.
RenVM smart contract knowledge
Strategy development (combines RenVM + host chain smart contracts)
New pages in Command Centre so operators can view strategies and opt-in
Protocol changes to allow an operator to redirect their revenue to a strategy, and withdraw underlying assets from strategies