The rewards are great and lucrative for anyone eyeing strudel.finance. It is without a thought that this high APY will continue if more vBTC is minted because of the burning curve and the multiplier where rewards go x4 to over 4000%!!! BTC can only be minted if vBTC pegs. There are clear economics that I’ve witnessed and seen, BTC will not be burned until vBTC gets to peg, and if it doesn’t peg, the whole project is has a detrimental side effect, TRDL rewards get dumped for ETH then TRDL price gets dropped significantly because it is fragile. For those who want to burn more BTC, like me, I simply cannot because there is a loss due to it being under pegged. If it was 1-3% difference why not, the TRDL rewards to burn BTC offsets those small losses.
Here is a solution, its a penalized protocol. Others have already expressed that im insane for bringing up this solution and this is not how it works yadda yadda, but before not thinking it through, please consider this perspective. I want to be frank, when I calculated that I would get 10%-3% gains a day, I wanted to sell the TRDL for ETH double my money and leave before it becomes illiquid, this clearly a game a lot of people plan on playing and dont be innocent. This project isnt a rug pull and we have to quit this type of behavior.
In the beginning I bought vBTC/ETH LP from those rewards I got TRDL I refarmed TRDL to the TRDL pool without the support of vBTC. I noticed if people exit the vBTC Pool it is as fragile as TRDL. There is no established protocol to move the TRDLs to vBTC.
I suggest that anyone who is farming that harvests to sell for ETH would be penalized for not selling it for vBTC. Those farming incentives are given due to a trust system that people will restake and support the vBTC and its not. This is very hard to do so a solution is this…
If we want a trustless bridge for vBTC then we need a trustless system that automatically take a % of the APY from the users harvest and when they “harvest” you get 50% TRDL and %50 vBTC in your wallet and if you decide to sell your vBTC then go head but atleast make TRDL buy vBTC.
Also, protocoling this penalization is not penalization, it is strictly to save vBTC and TRDL from getting dumped and those two fragilities protect each other.