I’d love to point out that this is now possible with 1inch limit order v2. Using permits on ETH, BSC, or polygon. This will let users permit the token, set the order under market value so it fills quickly, and receive back ETH/BNB/MATIC directly. Though, due to gas prices on ETH, this may or may not be the most optimal way, but it’s perfectly viable for BSC or MATIC.
A tool could easily be built to help fill the order rather than letting users sit around waiting for the order fill.
Further Iterating this Idea =-
Self Earning Treasury - 1INCH Treasury Bonds
Strategy -
Advantages -
These Bonds can be combined with NFT similar to uniswap liq nfts records & showing data such as serial number on the nft which tells all the info about the bond like how many units bought , amount at which it is bought etc. These NFT bonds can be Made Tradable on secondary market .
QnA -
bro this is awesome .
I’d like to be the first to salute you for coming up with these ideas. I would never have thought of it.
Am I right in understanding that I can borrow USDC using 1inch as collateral?
If that is the case, one thing I was wondering is that you buy the 1inch with the borrowed USDC, deposit it and withdraw the USDC. What will happen if I repeat this process?
This may be a dumb question, but I was genuinely curious if it is possible to do so, and if so, what would happen afterwards.
Yes . A sale period of x rounds y hrs apart will be opened to subscribe to these bonds unless the bonds are over subscribed
USDC is claimable only after all sale rounds are Finished .
Please ask as many questions or doubts you have , this will only help to rectify the idea and make it more refine & clear 
Yes . There are some mvp in the market that using this Method [ But not with treasury ]
Although Sole purpose of Bonds is to acquire Native Token from the Market and that underlying asset of bonds can be used by team for various purposes too .
There’s a Major diference between Locked staking - Lending - Bonds
In locked staking , user stake tokenz and in return gets more token from buyback from protocol reveue
The token rewarded are mostly dumped in market . Bonds Solves this sell pressure as you get usdc as reward + These bonds will be tradable too that carry ownership of underlying asset unlike st1inch which can neither be traded nor transfer
In Lending there’s liquidation risk if ltv drops , Bonds don’t
Thanks for reading out the Article . If you have any suggestion let me know
Supercharge the treasury income model
We just had good discussion of your idea in the governance channel of the discord.
I like the bond idea in general. It’s a little complex, but I think the complexity of implementing it could probably be worked out.
My major hangup is regarding the price the DAO assigns to the 1INCH token — it should be less than current market value since using the average of the trailing 6 months can be gamed by arbitrators.
For example, if the trailing six month price of the token has been $5, and it is currently trading at $1.70, people could just get $5000 of USDC by locking up $1,700 worth of the token, then leave (no intention to ever pay back the bond). In this scenario, it would just take one person with an arbitration bot to completely drain the treasury of the USDC it allotted for the bond program.
Thanks for reading out & yes your concerns are right . Although the post was meant to just articulate a general idea of Treasury issued Bonds .
The Price Logic behind the issuing ofcourse can be optimized & Improved in order to Stop manipulation & can also be fixed in a ratio factor too .
eg. Minting USDC 30 - 40% lower w.r.t the current price level of $1inch Token after all sale rounds are finished
The lower %age to minting can be crucial in avoiding manipulation
IMHO to more suitable for current size of treasury , Issue weekly bond (less than 3 month ) are more capital efficient .
It a great feature we could have but i don’t know if 1inch team has the expertise for such thing in their 100 dev team to deal with it or come out with a feature like that can earn treasury a huge chunk rather than sitting idle
By Keeping in Mind all the Points Shared by users and mods i’ve came to a conclusion of how we can actually make it more effective .
This is the continuation of the previous chapter of Self Earning Treasury -
So . This works when Market of $1inch is Dumping as well When market is up where we already have bonded 1inch which could sold at high prices if not redeemed after bonding period is finished .
We need to add something more for Bear Markets voltality ofc
Also a Concept of Trade for Treasury can be deployed on either polygon or other L2 chains .
Where a Leaderboard will be set and 1inch will choose top and efficient on chain traders with prove track record . The Treasury will allocate 20% Treasury to directly copy the trades & in return will reward use by proft sharing . This way treasury can generate income too . We can also use bonds and use Truefi like system to get Major Hedge fund companies to trade for Treasury and earn share
Single-Sided Staking. Since deposits on Bancor are purely single sided this means the treasury can greatly increase it’s liquidity depth without having to provide a counter asset like ETH.
Impermanent Loss Protection. Other AMMs are hard to garner liquidity naturally due to the great cost liquidity providers incur through impermanent loss (when price diverges liquidit providers lose out profits to the Market and Arbitragers). For this reason Liquidity Mining (= LM) is a must for DEX like SushiSwap or UniSwap, but Bancor doubles as an insurance company completely negating this risk by arbitraging it’s own token as well as paying out any extra loses in it’s native token back to liquidity providers.
Typically for space to be opened single sided in a Bancor Pool there has to be equal amounts of BNT on the other side staked single-sidedly but this can also be achieved via a BancorDAO co-investment.
Minimal Non - Intrusive Competitive Ads on 1inch Dapp
Whitelisted DEFI Projects competing each other for their Ads to get Listed via Committing $1INCH tokens to Treasury in an Auction System
The Process can be streamlined via Monthly Or Weekly Auctions .
Footer Ads -
A Large Portion of Dapp is unutilized . Such Minimal ads like Light Shdowy ads etc. & more innovative ads can be placed in th UI . Granting Full Control to Stakers/User if they want or don’t want to see the ads . Listed project can also offer their Token as rewards on clicking on those Adsthro the address they’re connected with .
Interactive ads can be placed which reward user in project tokens of the same project
Advantages -
We all know that 1inch does not charge fees on trades, but it makes me wonder how much there would be going to the treasury if there was a fee.
Looking at metamask swaps charging a 0.875% fee, they have made around 300 million in swap revenue. Looking at the 7 day volume being 3 billion $ in volume with a fee charged on swaps would generate a lot of income to the treasury. In another idea, the fee charged could go to buying back 1inch tokens to increase the buy pressure and make the token stronger as less are in existence.
Fees aren’t good for traders though, so we can give them the option with a simple toggle. Most people will not want to donate, but those who do can have their donation go to buying back the 1inch token and burning it.
In a more advanced feature in the settings, the trader should be allowed to set their own donation percent.
I think this is a very interesting idea.
Currently, the treasury’s revenue stream comes solely through the positive slippage. Maybe the DAO could reduce the % of the positive slippage fee that the treasury takes, and implement a small fee on all swaps?
Also, important to think about the logistics of implementing a flat % swap fee. It would require dev work all the way down to the smart contract level (which requires a new version and audits etc…).
I’d have to check the slippage data to discuss exactly what’s going on, but
Wouldn’t all slippage, positive and negative, be close to zero-sum?
I think there is a possibility that it could be skewed either positive or negative, but I wonder if we could take a flat fee and pay it to the treasury, and then zero-sum all slippage, so that the treasury would still pay for the burden that would be incurred.
If the commission income exceeds the slippage burden on the treasury, I think it would make sense.
Now it depends on whether users who trade through 1inch prefer to be charged a flat fee instead of losing or gaining from slippage, or the current system where no fees are charged.
Yeah the Slippage is Variable but implementing a Fix Fee to swaps might make us less competitive in price but as a user there’s no urge for me to loose 1% on my swaps just to donate it to burn 1inch
It’s not about MM even uniswap make more money than 1inch even when rates on 1inch are better than uniswap & people still use them , same is the case for MM , maybe it’s a 1st mover advantage & Also is the 1st entry point to enter defi . So it’s obvious . Also swapping on Metamask kinda gets revenue back to 1inch too in some way @RoundElephant right ?
I wonder how diff it is than the 1IP-04 but i think this option instead of making 1% should be reduced to less than this . maybe like for extra 0.01%
In total it’s a nice little idea .
Maybe even better if in return a user gets something like by implementing a lottery system where if a user opts to burn 1% during his swap then he will get back a ticket to get a chance to win from a monthly/weekly Prize Pool of 10,000 USDC etc.
What i mean is to have something in return if user is pledging out a stake on his swap Is more attractive imo .
So it should be like this - ‘Donate 0.01% to burn 1inch & get a chance to win Amazing prizes’
Sounds Better imho
We can use this type of system to choose the lucky draws
Why it’s needed ?
Crypto Faucets are generally a really good segment to capture the audience of Various ecosystems transacting & Doing Stuff on chain. A faucet typically provides user to do Multiple things over different chains by providing an Incentive like Gas Fee .
What Benefit will 1inch have if Implemented ?
As per data simulated via Various Website Traffic Portals , User retention basically depends on Various factors & one of the Most important aspect is BOUNCE RATE [BR] .
We can understand this term simply by saying that Lesser the BR , Higher is the user retention which means that user spending more time on the DApp . This also means if BR is high then users are surfing less in the DApp which means users aren’t paying much attention to other details of DApp .
Having a Faucet solves Multiple Problems at Once -
The last Point 4 is intresting from the Governace Point of View & can be Viewed as a reward for governance Participation which Most projects struggle with sometimes .
How ?
The DAO can fund the Faucet Sufficiently into Multi Faucet Jar & A voting will be done to find Top 10 most demanded Faucets whether it’s Evm or Non evm like Solana via instant Governance of Stakers or Snapshot prior to Governance Proposal
Advantage -
Cons -
Another Gas Refuel from Project token on any chain , feature made by another team . Patented
Seems like somebody has Made it .
just saw a project implementing that Refuel on Bungee. TLDR: don’t worry about having GAS… | by Sriram Vasudevan | Bungee | Apr, 2022 | Medium
