Stake ETH, make BANK

After some discussion in the Brainstorming chat in the discord yesterday, it was suggested that a post should be put to the discourse, so here it is :slight_smile:

This proposal makes a case that could help increase the monetary value of the BANK token by enabling community members to stake their ETH to earn BANK. The foundation of this proposal is based on a belief held by many of our members; that an increase in value of the BANK token will have positive implications for the Bankless DAO in the future. The idea here is that as the value of the token increases, more opportunities will arise for the DAO, creating a positive feedback loop of value creation and capture. The effects of this will increase the reach of the DAO , enabling us to connect with more people that share similar values to us. Along with increasing the monetary value connected with the BANK token, this initiative holds the potential to increase the transactional volume of BANK on decentralised exchanges and gives BANK members more opportunities to increase their DAO token holdings with less monetary risk.

This post is to try and understand whether it might be of interest to the community to enable members to stake their Ether to accumulate BANK tokens to add to their BANK position over time and whether a project like this would be beneficial to the Bankless DAO community.

The process suggested might look something like:

  • Community members deposit ETH into a Bankless DAO ETH Vault
  • Bankless DAO ETH Vault places deposited ETH in the Alchemix ETH vault (launching soon) which utilises Yearn to generate staking yield. Alchemix uses a smart mechanism to boost yield on top of Yearn’s yield.
  • Each decided period, the accumulated ETH from the vault is claimed from the Alchemix vault.
  • Part of the accumulated ETH from the Alchemix vault would be distributed to the treasury for operating activities
  • The remaining yield is used to purchase BANK on decentralised exchanges.
  • The purchased BANK is then redistributed back to the stakers as the staking reward


  • This activity would create a more constant level of demand for BANK assisting BANK attain monetary value
  • Enables users to gain BANK exposure purely through staking their Ether, reducing the risk to investors who want to amass BANK without selling their Eth holdings
  • Reduces barrier to entry to acquiring BANK tokens
  • Generate a larger trading volume of BANK token on decentralised exchanges which can give investors confidence in the value of the token
  • Beneficial for liquidity providers on DEXs which will encourage more users to provide more liquidity, increasing depth of liquidity on DEXs
  • Increased treasury holdings
  • Potential increase number of BANK holders


  • Enable people to get exposure to BANK without any monetary risk which may give people less of a reason to hold long term
  • I expect to have many blind spots on this so welcome them in the discussion!!


If this is something that the community is interested in, perhaps we can look at trying to get people together to build this idea out further. I look forward to hearing any thoughts on this matter! Thanks.

  • In favour (would stake more than 2ETH)
  • In favour (would stake between 1-2 ETH)
  • In favour (would stake less than 1ETH)
  • Not in favour

0 voters

I’ve not studied the alETH vault yet, but if it works the way that the alUSD one does, I don’t see why you would use it in this way.

The Alchemix contract are optimised for reduced risk borrowing with built-in loan repayment.

So the process would be to Deposit ETH, borrow ETH,m but ETH and wait for the loan to be auto paid (Unknown period, ETH collateral is locked unless you do transactions).

Depositing ETH to periodically buy BANK doesn’t need the borrow (note the associated collateral.

I’m not sure how Alchemix are capturing yield in addition to the yearn vault, Yearn aren’t know for leaving spare income on the table. If anything, I would expect Alchmix to be taking a cut.

I think a simpler approach would be more like the INVERSE vaults:
Deposit ETH, THey deposit on Yearn, income is used to buy a different coin (BANK). No collateral, no borrowing, simple redeem to pull your ETH and BANK out.


You are correct in what you are saying about the loan aspect of Alchemix. However, if you are to just deposit your DAI, you will get a yield on the deposited collateral regardless if you take out a loan or not. Similarly with their soon to be ETH vault, you’re yield will be boosted by a mechanism that stakes tokens that are in the Transmuter to Yearn vaults to gain yield which is distributed to the Vault users as an additional yield on top of the staking yield.

As an example, below are the two yields available for DAI on Alchemix (11.23%) and Yearn (8.25%)

The plan is for this will be available to the ETH pool when it is released in the next few days.

The INVERSE approach seems to make a lot of sense too and if it is simpler (which it sounds like it is), maybe that is a better solution!

1 Like

Moving to #archive

Please reply if you’d like to keep it open