[Incubation] Creation of ShapeShift DAO's Evmos Validator via D2D Swap with Evmos DAO

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.

Specifications

  • At the time of writing, the Evmos chain has an active validator set of 150.

  • The lowest threshold to enter the active set is ~50,000 EVMOS, or ~$85,000. However, this number is constantly changing as the bottom 50 compete to gain stability and assert its position in the network.
  • If the ShapeShift DAO community shows interest in potentially moving forward with this idea, Evmos DAO will begin the creation of a proposal on the Evmos network to utilize funds from our Community Treasury (110.65mil EVMOS or ~$195mil) to initiate a transfer of funds to a Gnosis Safe deployed on Evmos. ShapeShift DAO can utilize one of several bridges available (Gravity, Celer, Axelar, etc) to bridge assets to Evmos from the Ethereum side.

Because stables are currently a crucial part of ShapeShift DAO’s runway calculations, this may seem like a risky move for the treasury. While Evmos DAO is looking to do a swap anywhere from $250K to $2mil, Evmos DAO will definitely consider creative payment schedules, loans, or discounts if it is in the best interest of both DAOs.

This is just a preliminary thread to get discussions going, so please feel free to give any inputs, ideas, concerns, etc.

Rough validator revenue calculations: Evmos Staking Interest Calculator | Staking Rewards

I would like to explore the idea of the creation of a ShapeShift DAO Evmos Validator :

I think we should consider if this would affect the relationship with other current partnerships in the pipeline, like with Squid/Axelar who is another IBC bridge. Would this swap be contingent at all on an integration as well?

I don’t see how it would affect any ongoing partnerships with AXL. In fact, we’re in close contact with AXL right now and are preparing incentives for AXL assets on Evmos.

https://www.mintscan.io/evmos/proposals/64

https://www.mintscan.io/evmos/proposals/67

Disclaimer – similar offers will be proposed to the handful of other DAOs that have shown interest if foxfam does not seem open to the idea.

I’m not entirely clear on this proposal, is this suggesting a Fox for evmos swap? Or is this saying the DAO uses stables in its treasury to swap for evmos?

In either case would be good to clarify how much we are talking too.

Also, if this is a swap of stables for EVMOS, I think I would be against it. Not really a token swap but rather getting DAOs to purchase the token. Unless there was a sizable discount for purchase with stables.

Of course. There’s many ways we can get creative. Discounted tokens, stablecoin streaming over one a year (like a loan, as we don’t need the stables upfront right away – but ShapeShift DAO would be generating revenue right away with the validator), foundation delegations (significant amount of tokens delegated to SS’s validator from our end), mixture of FOX tokens perhaps getting FOX token on Evmos to participate in our upcoming DeFi programs, etc… Really open to ideas.

I wanted to start a discussion and perhaps get pretty creative so that both DAOs are benefiting. Cosmos “DAO” are not diversified in their treasury, but Evmos DAO is looking to get stables. I know stables is an important component of SS DAO’s runway and long-term planning, but I figured if we can think of something clever SS would have another revenue source while Evmos DAO can get some exposure to stables.

Off-topic, but our validator set is awesome, super proactive and helpful and friendly. With FOXCHAIN in the pipeline it could also be a good opportunity to get to know some of IBC’s well known validators!

gm @LPX

  1. . I'm definitely interested ShapeShift DAO running an Evmos vaildator as well as supporting Evmos on app.shapeshift.com.

    Re: Stable for Evmos swap

    The ShapeShift community is understandably very sensitive around spending our stables because we need to ensure we can survive the bear market. However, if Evmos would be willing to delegate enough to the DAO’s validator to give us confidence in our ability to recoup those funds in the form of Evmos rewards over the next 6-12 months, I think we could mitigate those concerns and help eachother out.

    Other things that I think would make this even more compelling:

    Discounted evmos

  2. Evmos grant for integration with ShapeShift (including keepkey, native wallet, staking, swap support via osmosis, and bridging via Axelar)

Are you able to propose some draft terms for a deal (pending governance ofc), including # of stables for # of evmos, evmos delegated (how much and for how long), and potentially grant funding for integration?