You are saying we should opt for stable asset with yields.
How do you propose we get there?

I wrote a lot about this in the original post and linked to more info:
@edicted/more-on-why-decreased-inflation-equates-to-a-lower-token-price

Our entire concept of how inflation and deflation works is not correct.

Manipulating inflation creates a delayed reaction.

I have blogged about this many times.
If we jack inflation to the moon today, that jacks yield up to the moon, today.
That makes all investors want to buy more because the APR is absurd.
But APR is measured per year, so the actual dilution of that inflation doesn't not happen until a year from today.

So we can jack up inflation today and get investors today,
and not have to pay the price for it until a year down the road.

Taking yield away makes farmers not want to be there, immediately.
Again, we don't get the benefit of reduced supply for quite some time later.

Big investors and whales will know the price targets,
and we can even set up automated systems to accommodate the price manipulations.

The only real problem, is supply shock (which nobody actually believes is a problem because everyone wants number to go up). So price goes up, the network moves to decrease inflation, but price goes up again, so the network decreases inflation more aggressively, and price goes up again. This is clearly a supply-shock situation, and lowering yield will no longer lower the price, and we can even consider it a money attack on the network and too much money is coming in for the network to handle.

In this edge case the network has to go back into price discovery, which I now realize that I haven't even explained. In price discovery we let the network pump and dump on purpose with all yield being allocated to one or two farms, and that's it. That is the only way to truly gauge the price and stop inflation from bleeding out of the system.

To recap:

• We boot up a new DEFI token with a fair launch.
  • Example: for every 1 USDC given to the Vault the user gets 1 DEFI token.
    • The 1 USDC in the Vault is then paired to another DEFI token and used to seed a DEFI/USDC LP pool that provides liquidity forever.
• The token begins bare-bones with only 1 or 2 farms (DEFI/STABLE LP; DEFI/GAS LP)
• Zero/little inflation is allocated to single staking farm.
• Token will pump and dump and pump pretty hard for however long.
  • This doesn't matter because all value is conserved by only allocating yield to the two farms.
• A price target is set during one of the dumps.
• We start allocating yield slowly to the single staking pool so bump up the dumped token price back to the price target.
• When price goes above the price target we lower yield of the single staking pool to bring it back down. (pendulum)
• There are also several scenarios where we increase/decrease total emissions.
• We use a pendulum to swing yield back and forth between DEFI/STABLE & DEFI/GAS depending on some kind of fear/greed index. High fear after dumping means we allocate more to DEFI/GAS while high greed after pumping means we hedge more with the stablecoin LP.
• There is another pendulum that manipulates the single-staking pool based on current price targets.
• If the price spikes to the upside and the pendulums breaks (meaning lowering yield is not having the intended effect and we are undergoing supply-shock/money-attack) then we go back to price discovery and intentionally pump/dump all over again to get a new price target.

TLDR:

It's absurd to think that we can statically manipulate yield and emission/inflation/interest rates and think that's somehow going to work in our favor. We have the tools to be better than a central bank by exponential margins and legit everyone in DEFI is fucking this up. It's embarrassing. Like... imagine everyone talking about how incompetent the Federal Reserve is, and then having the Federal Reserve come over here and watch how we are doing it. It's laughable. We would get laughed at.

We clearly need to be dynamically adjusting to the situation at hand and cutting out all the bullshit that has negative estimated value. Allocating yield to a BTC/ETH pool is a negative EV play waste of money. Every time. How does that serve us? It's a one trick pony.

The first DEFI coins got away with it because DEFI was new and they were the only game in town and they wanted to get the attention of big money. That shit isn't going to work anymore there are a million DEFI coins and no one gives a shit if we allocate yield to BTC/ETH other than the bots that join in while it's profitable and dump on us and the legitimate LEO whales who use it as a risk-free strategy to premine the token. Like, no. Veto that shit immediately.

Obviously this comment is now like a post long so just trust that I'll be talking a lot more about this.