RE: Bonding DEC vs Buy and Hold - Which is Better?
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Let's go than,
You still need to compete vs the incredibly high APYs of the Pools to convince people and you have to add the risk element of long lockup as well as total loss of flexibility.
So maybe we go lock up 800.000k DEC and get buy opportunities for 1.500.000DEC in a year? Even that seems to be a low shot since DEC will rise to the PEG (~+40%) within the next demand phase of the upcoming bull run.
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I can only see that happening with one single and very radical change. Let people lock DEC and SPS for temporary Guild Features/Brawls/Quests. So that the Liquidity competes against itself and gets tamed by its own supply.
But how realistic is such a move or something similar? Probably less than 1%?
Yeah I'm just making up numbers for the discount here. It's not a simple comparison by any means though.
If we assume that there are players who want to use DEC in the future to buy upgrades they have some choices:
Buy and hold: potential profit 58% upside
LP: 60% APR + potential token quantity loss as DEC rises
DEC bond: 58% + discount% upside
do something else and buy DEC later: ???
So if your goal is to buy those future upgrades, bonded DEC with a discount is better than just a straight buy & hold. May or may not be better than the LP. And who knows what the overall opportunity cost is when factoring in everything else in the world.
As just a trade, bonding your DEC doesn't make much sense since you're locked in.
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It's like the cat used to say, 4 Weeks or forever is basically the same.
You can still make that novel approach and pay dividends in DEC amounts denominated by their dollar value.
Well, there is probably a legal reason why tokenized bonds are generally difficult to achieve. A third party could help here, some anonymous DEC bonds emitter from the Bahamas. Where's SBF when you need a good
scammerfriend to create a helpfulrugpulldefi tool.