The Treasury is what is going to be paying the return. For this reason it accumulates revenue via many different mechanisms. One is going to be acquiring assets within the different LP via bonding.
Others are:
- bridge fees
- arbitrage profits
- HBD in savings
This is then used to buy POLYCUB for distribution. It is the replacement for the inflation.
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This is exactly right. As we talked about in the podcast too - the treasury is able to generate very high rates of ROC because of its ability to mint synthetics, loan capital and take loans against its own capital. Leverage - applied safely and in the right amounts - is extremely powerful. The % of leverage the PoL can take will also be subject to governance votes which we haven’t yet talked about publicly
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