Against Saber/CASHIO M&A
We don’t want it — as of now
Hello all, Crypto_notte here. I am very active in the Solana DeFi ecosystem and have holdings of both SBR, SUNNY and COW so thanks for having this conversation on the forum and allowing myself to hop in the discussion. We are not here to indulge in fantasy but only in sound economic reality.
I am strongly AGAINST the proposal of Saber acquiring 15% of CASHIO as it is highly dilutive for SBR, merely CASHIO has more to take than what SABER is gaining.
A few reasons:
Cashio has not shown any progress in development as the product today is exactly the same as it was at inception. They could have easily increased the TVL and utility of CASH/COW and utility by:
- adding others stables LP to the list of accepted collateral
- depositing the added LP to SUNNY
None was done.
Cashio has not shown any interest for its community in terms of engagement via Discord, Twitter and other medias. The claim from @jdx that “The development team has not had any reason to be active in the discord for the past months, to be quite frank, because the protocol was doing its job “ is frankly disturbing. There are several instances of users reporting problems and/or reporting concerns about the state of abandonment of the project. These claims have never been addressed.
Furthermore, Cashio is planning to introduce yet another governance token of dubious utility even though a governance token (https://tribeca.so/gov/cow/proposals/21) decided that $COW is the official governance token of $CASH.
The team claims that $COW was never supposed to be the gov token of $CASH, yet they never spoken out until today after proposal 21 — that makes $COW the gov token — passed with 99.997% approval rate, nor they even voted against with their own allocation.
The team claims yields on CASH are > 10%. sometimes even 30%, well I have spent the last hours analyzing Solscan to get a better understanding of what yield one can expect using CASH and unfortunately they are — on average — not that high as claimed.
In particular the top 3 CASH address are Quarry pools with the following composition
- UST-CASH — 20M of CASH — imbalanced (33/66)
- USDC-CASH — 9M of CASH — heavily imbalanced (15/85)
- UXD-CASH — 2M of CASH — imbalanced (33/66)
What are the yields like?
- UST-CASH (1% SBR + 0.3% COW + 6.20% LUNA = 7.50%)*
- USDC-CASH (0.35% SBR)
- UXD-CASH (0.50% SBR)
This means that at least 85% of CASH are not earning > 10%, and definitely not 30%. The few exceptions with that rate are highly exotic rates that enjoy a high barrier to entrance (they require combinations of bridging and staking).
Also, on the CASH-UST pool, 7.50% might seems high but remember UST can get circa 20% risk-free on Anchor/Terra, also once incentive program is over yield will be again 1.30% if not less.
Taking the LUNA incentive out of equation, you need at least 6 months of yield farming just to get enough to pay the CASH withdrawal fee. It does not sound so good to me and certainly it is not attractive to any yield-farmer.
For the reasons mentioned above I am AGAINST the proposal of Saber to acquire a stake in Cashio, some critics might even say that this is not an M&A operation, but a bailout!
We need accountability and communication from the guys at Cashio, and certainly we do not want to overpay for a — as of now — valueless governance token when there is no clear roadmap and vision for the Cashio future.
Thank you very much.
