1. To Stable coin or not to Stable coin?

• Cashio originally operated as a stable coin project.
• The new protocol may be able to operate in a similar way, but with lower complexity, if users interacted with the POM directly with the LPs.
• Users may also want the stable coin to be able to farm LM rewards and generate fees from acting as a neutral base pair for Saber.
• With or without the stable coin intermediary, users can still lock their LPs to generate collective voting power- and victims could still be sustainably rewarded by call option rewards on the floor.
• Without two token system, name Ouroboros makes no sense.

2. To POM or not to POM?

• Could potentially redesign system to reward victims based on LP fees generated by the collateral.
  • Would be significantly slower and have less incentives to grow than a POM.
  • Locking stable coin directly for rewards makes potential upside limited to only what’s generated by the SBR and LP fees, instead of flipping the reward system of the Saber ecosystem to call option rewards on a treasury token.
• POM creates an incentive system for people to participate in the Treasury Token system because downside risk is limited in the long term due to the rising floor mechanism.
• Rising floor mechanism allows us to issue call options on the floor to victims
• Without a POM, we would have to figure out another way to extract the value from the Saber grant to victims (8.2% of SBR supply) without crashing the token.
• Our POM would only accept one stable coin (not multiple, like Nirvana) so it can’t operate as a AMM in the future by allowing swaps with its treasury.

3. Given our goals, what other mechanisms could help achieve them better in less (or more) steps?

• #1 Priority: Create a system that incentivizes outside participation, and rewards victims more as more people participate - but doesn’t directly extract value from the health of the protocol. Call option rewards can only be exercised if a user supplies the floor value for the token they are minting - therefore being neutral to the health of the protocol.
• #2 Priority: Create a system that allows the Saber ecosystem to provide deep liquidity in the long term, and leans off the reliance of the inflationary SBR token. SBR rewards are slowly drying up, and shifting rewards to a call option on the floor for a token that controls the issuance of call option rewards to pools would be more sustainable in the long run. Hand in hand with this is the concept of locking Saber LPs in the Treasury Token in order to secure liquidity for that pool for 7 days-5 years, instead of renting it to mercenary capital.
• #3 Priority: Make the system as decentralized as possible, requiring minimal trust in third parties & minimal opportunities for centralized abuse of the system. Smart contracts should be self-operating singletons that only require bug fixes and maintenance that can be done in a decentralized manner. We want whatever we build to truly be a DAO owned by the people.