I write to congratulate the CREAM team in implementing the Iron Bank and creating a novel use to secure undercollateralized loans.
The increased utilization of certain coins via CREAM will incentivize organic liquidity on CREAM and create a positive feedback loop of supplying and borrowing on CREAM, resulting in a significant increase of revenue to the protocol.
These revenues from the Iron Bank could be designated as funds to reward holders and users of CREAM by increasing the value of CREAM. A possibility is to put the funds into two buckets of (a) buyback and burning circulating CREAM tokens and (b) building a treasury to be used for the sole purposes of maintaining the Iron Bank and its business.
Despite the various criticisms of buyback and burn, several protocols and exchanges like Celsius and FTX Exchange successfully practice regular buybacks.
My current proposal is to split Iron Bank revenues 50-50 with respect to the (a) buyback and burn and (b) Iron Bank treasury.
I look forward to discussing!!!