
Gm foxes! Hope you’re having the best day ever.
As most of you know, this proposal is currently in the Ideation phase: Add fees to THORChain swaps.
GM. The intent of this question is not to accuse of cause discomfort, it is just to layout a question about funding new tokenomics workstream. The workstream causes the DAO a substantial amount of monthly FOX.
My concerns.
1) In the past two terms the price of FOX has lost 99% of its value (I know tokenomics isn't designed to protect price), but if tokenomics were designed better this shouldn't have happened.
Summary: Deposit $3500 of liquidity into the Mt. Pelerin Liquidity pool in order to earn an extra 35% of revenue on each purchase through Mt. Pelerin On-Ramp.
Abstract: This would allow for the DAO to earn from the current 15% of all fees on purchases through Mt. Pelerin to 50%. The focus on the DAO currently increasing MAU which should ultimately drive more revenues through using features like onramps like Mt. Pelerin. We tried to get the 50% rev share without the staking of $3500 worth of MPS/USDC, but were ultimately declined but were told we could get the same boost if we deposited into the pool.
Link to the Referral Program - https://www.mtpelerin.com/invite?utm_source=mailchimp&utm_medium=email&utm_campaign=referral-newsletter-en&utm_content=cta
Summary - Evmos DAO is currently looking to initiate DAO2DAO swaps in an attempt to diversify its assets, specifically in stablecoins. Assuming that TaxiStake would be willing to take on this initiative, this would create another revenue stream for ShapeShift DAO while allowing Evmos DAO to diversify its treasury without creating sell pressure on our token holders.
Abstract - Evmos is the resulting network with roots dating as far back as 2017 when the Ethermint project was first initiated on Cosmos. The advancement of Ethermint, and the resulting chain, Evmos, was 100% funded by the Cosmos community in Proposal #44. While the core codebase is still open-source, Ethermint was rebranded to Evmos in 2021 and the Evmos mainnet was launched in Q2 2022. Since launch, the Evmos token has continuously outperformed the market despite setbacks, and has been the most profitable validator set in the Cosmos ecosystem.
This proposal is to authorize the Treasury Management and Diversification Committee (TMDC) to:
Advise on the allocation of certain limited assets located within the ShapeShift treasury, amounting to a new total of 180M FOX tokens (current TMDC allocation is 120M FOX tokens)
Summary
The current Shapeshift DAO treasury’s available holdings of FOX amount to 125 M FOX (Shapeshift DAO Treasury Zapper Link )
Therefore, if this proposal was passed, the FOX within the Shapeshift DAO treasury NOT managed by the TMDC would now amount to ~65M FOX.
This proposal is to authorize the Treasury Management and Diversification Committee (TMDC) to:
Advise on the allocation of certain limited assets located within the ShapeShift treasury, amounting to a new total of 180M FOX tokens (current TMDC allocation is 120M FOX tokens)
Summary
The current Shapeshift DAO treasury’s available holdings of FOX amount to 125 M FOX (Shapeshift DAO Treasury Zapper Link)
Therefore, if this proposal was passed, the FOX within the Shapeshift DAO treasury NOT managed by the TMDC would now amount to ~65M FOX.
ShapeShift has an opportunity to provide a delightful user experience for all Tendermint/Inter-Blockchain Communication (IBC) chains.
With the work near completed on the Osmosis integration, staking (including re-delegation), send and receive integration for additional IBC chains should be a reasonable engineering lift.
Trading of additional IBC tokens should be enabled on Osmosis soon, so additional trading functionality is not required for this bounty.
I do not think these efforts should detract from the core engineering roadmap, so I am proposing a FOX bounty to integrate additional IBC chains outside of the regular engineering roadmap. This could be a good funnel to attract new engineers to the ShapeShift DAO via Dework or via other methods.
Priority should be higher for chains that already have a ShapeShift DAO Validator: Juno, UMEE, Terra.
ShapeShift can work with these other IBC communities to try to sponsor matching or similar bounties from their governance process or community funds.
I would like to see an additional, bonus bounty for a GitHub template, notion page or medium article for how to add new IBC chains to unchained and the ShapeShift web app to help outside developers integrate future IBC chains.
The poll below has 3 tiers of bounty for each IBC chain.
Original Forum Post (note this has been changed from LUNA to all IBC chains): [SCP-TBD ]- Luna2 bounty to integrate into app.ShapeShift.com - #5 by willy
‘I don’t believe NFTs are all about art. NFTs are, among things, FINANCIAL INSTRUMENTS, and they should be used as such.’
Rob Montgomery, CEO of Revest finance.
Summary -
As of 6/4/2022, there is a little over 130,000,000 FOX ($16 million USD) sitting in the ShapeShift treasury all but collecting dust. This proposal would redeploy those tokens in a way that would benefit the DAO.
Here’s an example of one possible use:
“Ashley has 10,000 $FOX, and they will have 15,000 $FOX in one year of staking.
“Ashley utilizes the Resonate protocol and separates their principal stake (10,000 $FOX) from her interest (5,000 $FOX, (in one year.))
“The ShapeShift Treasury purchases the rights to the interest of 5,000 $FOX, (in one year) for 3,000 FOX, upfront.
“Ashley, understanding the time/value of money, gets an upfront, one-time payment of 3,000 FOX. (Every lotto winner and/or anyone who receives a pension is given a choice: an annuity paid out over the next 30 years, or a one-time, lump-sum payment. For example: With an annuity, you would receive a total payout of $200MM but with a lump sum you would receive $120MM. By accepting a lump sum payment you gain control over your income assets; even if the lump sum is less than the promised annuity payment.) Ashley would also retain the rights to their principal stake of 10,000 $FOX.
“ShapeShift is able to extend the staking APR bonus of 52.73% (as of midnight 6/5/2022) and, at the same time, reduce the emissions from the treasury by 40%.
“ShapeShift succeeds in locking up $FOX tokens for 12 months, removing them from the primary market, (which utilizes DEX’s,) and forcing them to be sold on the secondary market.
“Ashley sells the principal FNFT (10,000 $FOX) on a secondary market like OpenSea for ETH (equivalent to 9,000 $FOX,) ending with a net profit of $2,000 $FOX (or USD equivalent,) all while not affecting the price of $FOX.
(Ashley produces two FNFTs using the RESONATE dApp; one containing the principal and the other containing the rights to the interest:
a.) They deposit 10,000 $FOX into the ‘principal’ FNFT.
b.) They sell the rights to the ‘interest’ FNFT for 3,000 $FOX utilizing the RESONATE dApp.
c.) They sell the ‘principal’ FNFT on OpenSea for the ETH equivalent of 9,000 $FOX.
ShapeShift buys the rights to the interest of 5,000 $FOX for an upfront payment of 3,000 $FOX saving a total of 2,000 $FOX in interest payouts, slowing emissions. ShapeShift was also able to lock a total of 10,000 $FOX for 12 months, reducing the total circulating supply of FOX, and increasing the price.
Result:
Ashley: 9,000 $FOX + 3,000 $FOX = 12,000 $FOX gross profit.
ShapeShift: (50,000 $FOX) - (30,000 $FOX) = 20,000 $FOX saved.
In this example, we saw Ashley stake 10,000 $FOX for 12 months earning a 50% APR. They took a 60% buyout and then sold their principal FNFT on a secondary market. But the best part about RESONATE, my favorite part, is that we will not be restricted to a certain time frame, the amount staked, or even the amount for which we sell the interest-bearing FNFT.
Abstract (A summary in detail) -
Definitions
FNFT - Financial Non-Fungible Token
Voucher Decoupling - the separation of a stake’s periodic interest payments from its principal repayment obligation to create a series of individual FNFT’s. With Voucher Decoupling, the underlying stake becomes a principal-bearing FNFT and each interest payment can be claimed through the interest-bearing FNFT at any time.
Principal FNFT - This is the FNFT where the original sum of tokens staked is held.
Interest FNFT - This is the FNFT where the interest from the principal FNFT will be sent. You are able to withdraw the interest accrued at any time.
Fixed-Term - This is a type of voucher decoupling where the interest FNFT is locked for a certain length of time no matter how much interest accrues. i.e. 12 month vest, whether the APR is 75% or 2%.
SUMMARY:
This proposal extends and modifies the current phase of liquidity mining incentives, which end mid-July.
ABSTRACT:
This proposal outlines the latest revision to our liquidity mining efforts (an update to [SCP-55]). This proposal continues the LM program on Uniswap v2 for another 4.5 months past the current early July end date, alongside the creation and funding of liquidity mining incentives on Bancor v3.
MOTIVATION:
Owning liquidity is important. Insufficient liquidity can exacerbate price slippage. FOX needs to be present and available throughout the Defi ecosystem for the stability and long-term success of FOX and Shapeshift DAO.
In light of fewer liquidity provisioning options, this proposal seeks to ensure sufficient liquidity for FOX, and for that liquidity to be owned by Shapeshift DAO.
SPECIFICATION:
This proposal would extend the Uniswap FOX/ETH v2 LP reward program for this next 4.5 month LM cycle. This reward program would be for 6.75M FOX.
SCP-55 extended and modified the current phase of LP rewards for an additional 4.5 months and was approved in January. This proposal would extend LM rewards 4.5 months past the current early July end date (with a new LM program). This proposal will allocate 6.75M FOX for this next program.
The Bancor v3 LP reward program will last 4.5 months and start from the time of FOX being listed on Bancor v3. Up to 6.75M FOX will be deposited to Bancor v3, which Bancor will match up to 50k BNT, emitted over a 24-month schedule. All previously whitelisted tokens will be introduced to Bancor v3. As FOX is whitelisted with Bancor, this means that FOX should be listed on Bancor v3 sometime between May 29th and June 5th.
Bancor v3 is different than Bancor v2 in that impermanent loss protection is now instant (was 100-day wait before), with the drawback that there is a 0.25% withdrawal fee imposed. In addition, Bancor v3 imposes a 7 day redeem cooldown window. To ensure impermanent loss protection, Bancor v3 allows for DAOs to escrow a certain amount of their token to “bail out” individuals who would otherwise suffer from an impermanent loss.
Bancor v2 rewards were denominated in BNT only. Bancor v3 rewards can be BNT and the native token, or FOX in our case. In Bancor v3, these FOX reward tokens (FOX LP tokens) are, initially, part of the liquidity provided (unlike in v2). These FOX LP tokens (living in bancor-land) autocompound and are staked in a burner, ensuring that the ultimate redemption of the FOX LP tokens results in more FOX tokens than FOX LP tokens staked/burned.
Through v3, user experience is simplified to one swap (from the 2 necessary in Bancor v2). This will better develop the liquidity necessary for FOX to function well.
What This Proposal Would Do:
Up to 6.75M FOX will be allocated as liquidity mining rewards for the Uniswap v2 LM program 2 days before the current one ends (mid-July). This program will last for 4.5 months.
Start LP reward program on Bancor v3 (when available) up to the amount of 6.75M (4.5 month period, starting when FOX is available on Bancor v3).
Deposit 10M FOX into Bancor v3 from the Shapeshift DAO Treasury.
SUMMARY:
This proposal extends and modifies the current phase of liquidity mining incentives, which end mid-July.
ABSTRACT:
This proposal outlines the latest revision to our liquidity mining efforts (an update to [SCP-55]). This proposal continues the LM program on Uniswap v2 for another 4.5 months past the current early July end date, alongside the creation and funding of liquidity mining incentives on Bancor v3.
MOTIVATION:
Owning liquidity is important. Insufficient liquidity can exacerbate price slippage. FOX needs to be present and available throughout the Defi ecosystem for the stability and long-term success of FOX and Shapeshift DAO.
In light of fewer liquidity provisioning options, this proposal seeks to ensure sufficient liquidity for FOX, and for that liquidity to be owned by Shapeshift DAO.
SPECIFICATION:
This proposal would extend the Uniswap FOX/ETH v2 LP reward program for this next 4.5 month LM cycle. This reward program would be for 6.75M FOX.
SCP-55 extended and modified the current phase of LP rewards for an additional 4.5 months and was approved in January. This proposal would extend LM rewards 4.5 months past the current early July end date (with a new LM program). This proposal will allocate 6.75M FOX for this next program.
The Bancor v3 LP reward program will last 4.5 months and start from the time of FOX being listed on Bancor v3. Up to 6.75M FOX will be deposited to Bancor v3, which Bancor will match up to 50k BNT, emitted over a 24-month schedule. All previously whitelisted tokens will be introduced to Bancor v3. As FOX is whitelisted with Bancor, this means that FOX should be listed on Bancor v3 sometime between May 29th and June 5th.
Bancor v3 is different than Bancor v2 in that impermanent loss protection is now instant (was 100-day wait before), with the drawback that there is a 0.25% withdrawal fee imposed. In addition, Bancor v3 imposes a 7 day redeem cooldown window. To ensure impermanent loss protection, Bancor v3 allows for DAOs to escrow a certain amount of their token to “bail out” individuals who would otherwise suffer from an impermanent loss.
Bancor v2 rewards were denominated in BNT only. Bancor v3 rewards can be BNT and the native token, or FOX in our case. In Bancor v3, these FOX reward tokens (FOX LP tokens) are, initially, part of the liquidity provided (unlike in v2). These FOX LP tokens (living in bancor-land) autocompound and are staked in a burner, ensuring that the ultimate redemption of the FOX LP tokens results in more FOX tokens than FOX LP tokens staked/burned.
Through v3, user experience is simplified to one swap (from the 2 necessary in Bancor v2). This will better develop the liquidity necessary for FOX to function well.
What This Proposal Would Do:
Up to 6.75M FOX will be allocated as liquidity mining rewards for the Uniswap v2 LM program 2 days before the current one ends (mid-July). This program will last for 4.5 months.
Start LP reward program on Bancor v3 (when available) up to the amount of 6.75M (4.5 month period, starting when FOX is available on Bancor v3).
Deposit 10M FOX into Bancor v3 from the Shapeshift DAO Treasury.