# The Midwest Independent Declairation: A subDAO for those who have been forgotten

**URL:** <https://research.lido.fi/t/the-midwest-independent-declairation-a-subdao-for-those-who-have-been-forgotten/2429>\
**Category:** General\
**Created:** [June 15, 2022, 7:03pm UTC](https://research.lido.fi/t/the-midwest-independent-declairation-a-subdao-for-those-who-have-been-forgotten/2429 "2022-06-15T19:03:08Z")\
**Posts on this page:** 1\
**Showing post:** 5

<div class="post-metadata">

**Author:** ![Chuck](https://dub1.discourse-cdn.com/flex013/user_avatar/research.lido.fi/chuck/32/32_2.png) [@Chuck](https://research.lido.fi/u/Chuck)\
**Post date:** [June 17, 2022, 10:26am UTC](https://research.lido.fi/t/the-midwest-independent-declairation-a-subdao-for-those-who-have-been-forgotten/2429/5 "2022-06-17T10:26:28Z")

</div>

Here are some details about the benefits and risks of the behavior of the initiative.

**Benefits**

- Cash flow might be a deep demand among most $LDO holders. Provide liquidity on Balancer LDO-ETH pool will allow you to make about 2% monthly return paid in $BAL. $BAL has a healthy tokenomics since they adopted veBAL model on April 7th 2022. IMO, $BAL is one of the most undervalued tokens, especially after the past weeks market collapse.

- Invest in the BAL-ETH pool and lock up for veBAL will allow you to share 75% of the admin fees collected by the protocol, along with other veBAL holders. As I have noted in [another post](https://research.lido.fi/t/join-the-vebal-war-on-balancer/2282/19), this will give you a 12.5% APR, based on the current and near past conditions. In addition, your veBAL will boost your LDO-ETH $BAL return with up to 2.5X power.

- Although I prefer you join this action by directly locking up your BAL-ETH lp token on Balancer and vote for LDO-ETH pool, there still have other options(bribe protocol, like Hidden Hand, Aura etc.). These bribe protocols may also bring you addition return.

**Risks**

- Price volatility. No matter how optimistic I am on the future of $BAL, there will always be a price valuation risk. Never take the risks more than you can afford.

- Impermanent losses. Provide liquidity on Dex will always face the risk of impermanent losses. Although there two pools are all functioned with an 80:20 weight mechanism, which could reduce the impermanent losses by 60%, compared to a normal 50:50 pool, the risk is still there.

---

_[View the full topic](https://research.lido.fi/t/the-midwest-independent-declairation-a-subdao-for-those-who-have-been-forgotten/2429)._