I’m definitely not talking about a $90m investment here. Actually, it should be called a merge or acquisition.
This proposal is based on putting 20% of the protocol income(about 25stETH per day) to join in the war. That is a 150 $steth( about $240k based on the current price) monthly investment. And the target is not to hold all the veBAL token. There should be a cap. Let’s assume it is 15%. Then the total investment should be:
BAL/WETH pool is $90m (LP-ing there is a first step to get veBAL)
About 68% is locked for veBAL and average locked up time is about 10.8 months
Investment cap = $90m * 0.68 * (10.8/12) * 0.15 = $8m
Yes, that will take 3 years to reach the cap.
The returns will also be in a liner way. By the end of the first year, we may have 5% of the total veBAL and that is $180K annually return. That is about 12.5% APR.
That’s just the protocol fees returns. There also has a $BAL incentive mechanism which distributes top to 10%( currently 2.3%) of the total new issued $BAL(145K $BAL weekly) to all veBAL holders. That’s up to 43K $BAL annually. Based on the current price of $BAL($7), that is about 20% APR.