[Closed] AFR 008: Yield Aggregator: Node Farming

TL;DR Summary

  • Create a Treasury collect fees, etc, let users put fees to use and generating yields
  • Delphi will use fees to buy tokens for nodes/validators creating an entire node/validator cluster.
  • Literally a yield aggregator sharing profits with ADEL holders.
  • Promoting further decentralization depending on how it is implemented.
  • Creates an incentive to hold ADEL
  • Ensures Delphi has liquid assets

Abstract
The creation of a vault or treasury would let Delphi expand its’ functions. It could be used to potentially generate a continuous stream of sustainable yields through aggregating nodes/validators of various protocols and crypto projects.

Treasury
The treasury would function as a way to expand Delphi and would collect fees from users. Another option would be to pool funds towards a project/goal the community has voted on.

Yields
This strategy revolves around staking nodes and validators of various protocols and projects. Funds from the treasury would be used to buy tokens required to stake or host a node/validator or Delphi users can pool their funds towards a node/validator, something like ANKR’s Stkr. Ex. Ethereum 2.0 requires 32 ETH to stake. A REN darknode requires 100k REN. Polkadot validator need at least 350 DOT, etc. This idea extends beyond a single node, but an entire collection of nodes owned by Delphi. Delphi would hold the required amount of tokens for multiple nodes and shares the profits with ADEL holders and uses a portion of the profits to maintain the nodes/validators. These collection of nodes/validators could be grouped together to increase exposure to different assets and reduce risk of losing funds due to slashing. An example of a “pool” of nodes is, 3 ETH2.0 validators/2 DOT validators OR 10 ETH 2.0 validators/1 REN darknode. This “pool” of nodes would be available only for ADEL holders by locking some amount of ADEL. The more valuable a pool is, the more ADEL is required to be locked. Think of ADEL as a “membership fee” to join a node farm. This would increase the value of ADEL and make it more rewarding for the early users of Delphi.
If Delphi users feel that a node/validator is not worth maintaining then the tokens can be put back into the vault and exchanged for eth, allowing funds to be used towards something else or redistributed to the users who staked in the pool.

Technical Specification
You would need a way to deploy hundreds of nodes and validators.

9 Likes

Love this! Excellent contribution.

1 Like

I Like the idea of using ADEL to possibly stake in eth. Good piece

I’m voting no on this proposal - would require a massive amount of liquidity to generate enough rewards to buy tokens, which would have to be manually transacted, then have to be delegated or a node would have to be built/maintained and everytime a txn occurred or you cashed out staking rewards, it would have to go up for community vote.

Very cool idea, but not practical

[ 10:42 AM ]